Islamic Finance | |
Islamic Finance | |
4495 VIEWS | |
![]() |
Monday, October 09, 2017 12.17PM / Mondo
The Securities and Commodities
Authority (SCA) launched a strategy for Islamic capital market development. The
strategy includes the supervisory role played by SCA (legislation and powers),
the role played by self-regulatory organizations (SROs) (i.e. financial
markets), and the challenges encountered.
SCA's role is to issue legislative
regulations for the regulation and supervision of Islamic capital market
products, such as shari'ah-compliant mutual funds, additional disclosures of
Islamic products, shari'ah-compliant hedge contracts, provisions for agencies
rating Islamic products, updates on sukuk and capital adequacy regulations
through assigning weights to Islamic products, the launch of the sandbox
initiative to stimulate innovation in Islamic financial markets, the
introduction of shari'ah board governance system, the qualification of
supervisory shari'ah board members, and the organization of training programs
plus an integrated awareness program dealing with Islamic financial markets.
Markets' role, on the other hand, is
to issue provisions regulating listing and trading securities and
shari'ah-compliant hedge contracts; formulate shari'ah-compliant equity
screening provisions; update existing clearing, settlement, and trading
regulations concerning Islamic products; and develop investment indicators for
Islamic securities.
It is worth mentioning that there are numerous challenges facing the Islamic finance market, including the high costs of Islamic contracts; the increased complexity of the composition of Islamic products (multiple contracts); the difference in perspectives and schools of Islamic law; the simulation of traditional instruments in the composition of Islamic products; the need for innovative, creative, and credible products that compete with conventional instruments; and the availability of trained and qualified human resources to create Islamic products that fulfill shari'ah purposes.
Related News
1.
FGN Debut Sukuk Offer
Oversubscribed
2.
Federal Government of Nigeria
(FGN) N100bn Debut Sukuk Offer Opens For Sale to the Public
3.
Dissecting the FGN’s N100bn
Sukuk (Bond) Offering
4.
Investment Opportunity in FGN
Sovereign Ijarah Sukuk
5.
All You Need to Know About
Sovereign Sukuk
7.
Commendation to DMO on the
Proposed Federal Government of Nigeria Sukuk Debt Issuance
8.
Call for Nominations In
Distance Learning Programs on Islamic Banking and Finance
9.
Guidelines for the Regulation
and Supervision of Islamic Microfinance Banks in Nigeria
10. DFM Officially Publishes Final
Version Of “Standard On Hedging Against Investment And Finance Risks”