Monetary and Banking Research Institute
Date:4/23/2019 10:29:43 AM   |   Code : 304343   |   View: 131

The Research Report on "Shari'a Standard on Investment Sukuk Defined by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)" is published by the Monetary and Banking Research Institute


One of the most important infrastructures in the Islamic securities market or Sukuk is the standardization of the Shari'a rules and regulations related to this market. Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is one of the institutions that, so far, has published various Shari'a standards on the activities of Islamic financial institutions. This organization is a non-profit, independent international organization that formulates and sets Shaiah standards for accounting and auditing, governance and ethics based on Islamic law for the use of Islamic banks and institutions. The organization has more than 200 members from around the world, including central banks, Islamic financial institutions, and other Islamic banking and finance industry entities.

In the present paper, after presenting the definition and types of Investment Sukuk, the authors investigate the characteristics and Shari'a regulations of Investment Sukuk and they explain Sukuk trading and redemption. While presenting the full text of this standard, the authors attempt to explain the points in the footnote, in particular, the differences between this standard and the standards of jurisprudence committee of the Securities and Exchange Organization of Iran (SEO) as the legal reference to the securities market in Iran. This is important because to expand and deepen the Islamic securities market in Iran, and at the international level, compliance with international standards, such as AAOIFI standards, and, if necessary, an examination of the appropriate solutions to the legal challenges faced by this market is required.

Today, the standards developed by this organization have attracted favorable opinion and support from different countries. In some countries such as Bahrain, Dubai, Jordan, Lebanon, Qatar, Sudan and Syria, these standards are fully utilized. Some financial institutions in Australia, Indonesia, Malaysia, Pakistan, Saudi Arabia, and South Africa have also published guidelines on the basis of the AAOIFI standards. One of the major standards of this institution is the Shari'a No. 17 on Investment Sukuk, which was ratified in 2003. At the end of the paper the authors have a brief overview of the history of drafting the standard and the Sharia basis of it.

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