Premium Essay

Shariah

In:

Submitted By ahmedraza123
Words 333
Pages 2
Towards the half 2nd century , geographically based schools of thought came in being.There were only four major legal schools(Hanafi,Maliki,Shafi and Hanabali) which are one of the important feature of "Shariah".Shariah indicates the application of law which is justified by Holy Quran and the Prophet.There was mutual tolerance among the different schools and all of them repected the use of ijma.I personally believed the individual style of interpretation is valid and the method of reasoning can be seen in the same light because eventually each of the school leads to same point and every muslim has the right to choose any of the school. The oldest of the classical Sunni schools is the Maliki, which is originated in Medina.Respect for the sunnah of Medina as the place most closely associated with the mission of the Holy Prophet and the first Muslim community persisted in the legal thought of the Maliki school.While Hanafi jurists attached great importance to systematic consistency in legal thought and the refinement of legal principles. They used juristic speculation to develop rules and characteristically resolved legal questions through formalistic approaches. Also the third school Al-Shafii elevated the sunnah of the Prophet to the status of a source of law coequal with the Qur'an which i believe is widely accepted hence which is why today most of muslims believe that sunnah explains the Quran.Al-Shafii rejected the use of juristic opinion or speculative reasoning in formulating legal principles and insisted that jurists be restricted to the use of analogical reasoning (Qiyas).Lastly the Hanabali school believed in five main sources of law;the holy Qur’an and Sunnah, the fatwas of scholars as long as they do not contradict the scriptures,the sayings and opinions of jurists that fall in line with the holy texts, traditions(Ahadiths) without a specific lineage of

Similar Documents

Premium Essay

Shariah Screening

...prohibited financial ratios. 3) Exclusion of companies with insufficient information. 4) Calculation of a dividend purification ratio. 5) Periodic screening of the companies and revising the approved list of Shari'ah compliant companies. Exclusion of companies engaged in prohibited business activities. a) The core activities of the companies should not be impermissable / or shari'ah incompatible. Such services would therefore include: Financial services based on interest; Gambling; Manufacture or sale of non halaal products eg. pork or alcohol or related products; Conventional insurance; Entertainment activities; Manufacture or sale of tobacco based products or related products; Stock broking; Share trading in shariah non approved securities; Defense/weapons; Companies offering lottery or betting services; Music; Owners and operators of hotels; Cinema and adult entertainment. b) Certain companies comprise both permissable and non-permissable elements. For such companies the following criteria are used: The core activities of the company are important and considered to be in the public interest of the Muslim Ummah. The non permissable element involves matters that are difficult to avoid. However, for these non permissable elements, there exist “Benchmarks of Tolerance”. The 10% Benchmark: Applied to assess the level of mixed contributions from the activities that involve the elements that...

Words: 513 - Pages: 3

Premium Essay

Shariah Contract

...[pic] LAC 4443 COMMERSIAL LAW INDIVIDUAL ASSIGNMENT ‘SHARIAH LAW OF CONTRACT’ |NAME |HANNA FAUZANA BINTI HAMDAN | |ID NUMBER |1110*** | |GROUP |TMC 2 | |LECTERUR’S NAME |MADAM MAHERAN BINTI MOHAMED | ‘Aqd’ was conjunction consent (tender expression on the one hand that held a contract) with qabul (expression of acceptance by other) which give effect to a contract. Qabul affinity binding agreement and both parties mutually agree of each of the parties involved in the contract bound to perform their respective obligations accordance with an agreed deal. ‘Aqd also is the two parties taking upon themselves an undertaking to do something. It is composed of the combination of an offer (ijab) and acceptance (qabul). The making of ‘aqd is connecting in a legal manner, one’s offer (ijab) and acceptance (qabul) with the other, in a way which will be clear evidence of being mutually connected. Allah said in the Quran: يَا أَيُّهَا الَّذِينَ آمَنُوا لا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ إِلا أَنْ تَكُونَ تِجَارَةً عَنْ تَرَاضٍ مِنْكُمْ “Oh you who are believe...

Words: 1513 - Pages: 7

Premium Essay

Shariah Governance Framework

............................................................................... 3 5. Effective Date & Compliance Deadline ............................................................................. 3 6. Approach................................................................................................................................ 4 PART 2: SHARIAH GOVERNANCE ARRANGEMENTS ................................................... 5 SECTION I: General Requirements of the Shariah Governance Framework ..............5 - 9 SECTION II: Oversight, Accountability & Responsibility............................................. 10 - 14 SECTION III: Independence............................................................................................ 15 - 16 SECTION IV: Competency .............................................................................................. 17 - 18 SECTION V: Confidentiality & Consistency.................................................................. 19 - 21 SECTION VI: Shariah Compliance & Research Functions ................................................ 22 (i) Shariah...

Words: 11007 - Pages: 45

Free Essay

Shariah Issue in Takaful

...INCEIF

 The
Global
University
in
Islamic
finance

 Kuala
Lumpur,
Malaysia

 
 CIFP
part
2
 SH2002
Shariah
issues
in
Islamic
finance



 
 
 
 
 
 
 
 
 Title

 Shariah
Issues
in
Takaful:
 Nomination
and
Hibah
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Semester
Sept
2013

 Name:
Fatima
Zahra
Habib
Eddine
 Matric
No:
1300135
 
 
 Abstract
 _________
 Fatima Zahra Habib Eddine 1300135 
 Although
is
having
a
rapid
growth
the
Takaful
Industry
has
some
Shariah
issues
still
unsolved.
 Mainly
in
the
Family
Takaful
(Islamic
life
insurance)
not
all
Scholars
agree
on
the
nomination
 practice.
 This
 issue
 will
 be
 discussed
 in
 the
 first
 chapter.
 When
 nomination
 is
 accepted
 not
 all
 Scholars
 agree
 whether
 the
 appointed
 person
 is
 a
 sole
 recipient
 of
 the
 gift
 (hibah)
 or
 an
 executor.
The
Shariah
Advisory
Council
of
Bank
Negara
Malaysia
faced
the
issue.
However
there
 are
still
some
open
discussions
and
inconsistencies
in
regulations.
 
 
 
 
 
 
 Key
terms
of
the
research

 
 Takaful,
nomination,
hibah,
Shariah
issues,
family
takaful.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2
 Shariah Issues in Takaful 
 Objectives of the research: 
 Fatima Zahra Habib Eddine 1300135 The principal objective of the research is to present the Shariah issues during the application of the nomination and the hibah in the Family takaful plans by the takaful operators. Therefore, the research will discuss: • • • • • The nomination practice...

Words: 3439 - Pages: 14

Free Essay

Shariah Audit Programmes

...Shariah Audit Programmes Product : Saving Account-I based on Al-Wadiah Yad Dhamanah Product specification : 1) Savings Account-i is based on the "Wadiah Yad Dhamanah" principle, which refers to a contract between the owner of funds (account holder) and the Bank for safe keeping purposes. 2) The account holder as a depositor places his deposits on a trust basis. Maybank Islamic, as a trustee, guarantees the repayment of the whole amount of deposits or any part thereof upon request. Shariah contract : Al-Wadiah , Dhaman and Hibah Source Document Detail Checklist Audit Objective Wadiah contract i) The contract enables a person to entrust his asset to another person for the purpose of safe keeping. ii) The Islamic bank act as the safe keeper or trustee for the fund deposited by customer. iii) The asset must be valuable, can be owned and deliverable iv) The asset can be possessed physically To determine Wadiah yad Dhamanah contractual conditions are met Depositors Account i) The Islamic bank (IB) obliged to guarantee the deposit. ii) The IB can utilise the money of depositor iii) The IB has right to any income derived from utilization of depositor account. iv) The depositor are not entitle to any share of profit but the depository may provide return to the depositor as a token of appreciation To ensure the right of depositor account and to know the activities involved on depositor account The bank Obligation i) The Islamic...

Words: 406 - Pages: 2

Premium Essay

Shariah Audit

...QUESTION 3 (a) Financial performance of HMI In order to measure the HMI’s financial situation, we had used several ratios analysis including current ratio, gross profit (GP) margin, debt to equity ratio, and also average collection period. Based on the ratio analysis for liquidity, it is shown that HMI’s current ratio is 1.76, which is higher than 1.0. It means that HMI has ability to pay current liabilities using their assets that can be converted into cash in the near term. In term of profitability, the GP margin of HMI is only 32.6% from its revenues. From our analysis, it shows that HMI incur high cost of sale which leads to low gross profit. In term of debt to equity, HMI has ratio above 2.0 which is 2.97. It is quite dangerous for HMI because it puts their creditors at higher risks. Besides that, higher debt to equity ratio signal weaker balance sheet strength and often results in lower ratings. Last but not least, we measure the performance of HMI in term of activity ratio; average collection period. From our analysis, the average collection from its clients is within 43 days. It is quite a long period that HMI must wait to get their cash payment from the sales incurred. Longer collection period will lead to bad debt which also will affect the firm’s current assets. The table below shows the summary of HMI financial performance during 2011. RATIO ANALYSIS | 2011 | CURRENT RATIO | 1.76 | GP MARGIN | 32.6% | DEBT-TO-EQUITY RATIO | 2.97 | AVERAGE COLLECTION PERIOD...

Words: 903 - Pages: 4

Free Essay

Shariah Non Compliance

...If there is Shariah Non-Compliance in the entity, who is responsible to that activity? Conventional auditing procedures do not account for the specific Shariah compliance risk to which all Islamic financial institutions are exposed. The role of a Shariah auditor is different to that of a conventional auditor because its remit is derived from the basic values of Islamic society. The most important point to be noted is that a Shariah audit is separate from the financial and operational auditing processes undertaken by Islamic financial Institutions. Deloitte explains in its Islamic Accounting Guidelines that: “Standards for Islamic financial institutions have to be developed because in some cases Islamic financial institutions encounter problems because the existing standards were developed based on conventional institutions, product structures or practices, and may be perceived to be insufficient. The Islamic finance industry is in improvement whereby there is enhance in practice, improve risk management and also increase in number of investor. A proper standard framework for Shariah Compliance Audit is essential to ensure the harmonization of Shariah practice in Islamic Financial Institutions. The development of Shariah audit programme is also important as to ensure the procedures of each product in Islamic Financial Institutions are being followed. So this shows that Shariah Compliance Audit Framework and Audit Programme are important for Islamic Financial Institutions specifically...

Words: 313 - Pages: 2

Free Essay

A Shariah Scholar’s Place on the Board: Interview with Top Shariah Scholars

...A Shariah scholar’s place on the board: Interview with top Shariah scholars Funds-at-Work, a research-based strategy consultancy focusing on the investment industry, recently released "Shariah Scholars – A Network Analytic Perspective," which links Sharia scholars to board positions. It is a more comprehensive study than previous Sharia scholar reports. Rushdi Siddiqui puts some challenging questions to four international Sharia scholars to get their view points: • Dr Hussain Hamid Hassan (HHH), eminent scholar and chairman of many Islamic financial institutions • Dr Mohammad Daud Bakar (MDB), international scholar and founder and managing director of Amanie Islamic Finance Consultancy and Education; • Yousuf Talal DeLorenzo (YTD), leading US scholar; and • Dr Mohammad Akram Laldin (MAL), Executive Director, ISRA, Malaysia. Research is an important area in Islamic finance and you are well aware of the Funds-at-Work study, linking scholars to Sharia boards. What is your impression of the study? HHH: The Islamic finance industry is young but growing. It needs specialists, not just in Sharia, but in law, accounting and feasibility studies. There are very few scholars who combine the qualifications and experience needed for this field. Therefore, it is only natural that they would carry a heavy load, for the industry is in need of development and the invention of new products which should be compliant with the Sharia, valid in civil law, and commercially viable...

Words: 3400 - Pages: 14

Premium Essay

Shariah Complaint Data

...UNILEVER | DOVE SOAP | Product: Dove Soap Submitted By:Muhammad Shoaib 25021Bakhtawar Jabeen 20181Gufran Ahmed 24845Shabahat Naureen 24838Submitted to: Ms.Ayesha Aman | Acknowledgement ------------------------------------------------- Alhamdulillah, we are very grateful to the Almighty “ALLAH”, who have bestowed us the will to complete our assignment about “DOVE” which is connected to our scheme Principles of Marketing, Here, we would like to take this opportunity to express our highest gratitude and compliment to the people who are involved directly or indirectly in this report. In this report we examine the importance of the marketing strategies for the Unilever firm like DOVE. We have analysis of how a product’s sales are driven by brand name, weighted for market leadership, stability and ability to cross national borders. Beside, the product’s prices usually reflect its proper value in the eyes of the consumer. It’s always not a good idea that the strategy of offering lower prices is to penetrate the advantaged economies. Thank you to all people who are involved in making our report / assignment a successful one and may all your help and effort are blessed. We give honor and privilege to our respected resource person who helped us in thinking in the right direction by giving us this challenging task. JAZAKALLAH ------------------------------------------------- LETTER OF TRANSMITTAL 23rd MAY-2012 SUBJECT: SUBMISSION OF...

Words: 4995 - Pages: 20

Premium Essay

Investment Banking Under Islamic Shariah Principles:

...Investment Banking Under Islamic Shariah PRINCIPLES: A Case Study on Export Import Bank of Bangladesh Ltd By Md. Mostak Ali ID: 3-03-03-025 A Project Report Submitted To Professor Md. Ali Akkas Department of Management Studies In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSSINESS ADMINISTRATION UNIVERSITY OF DHAKA Dhaka 1000 September, 2011 September 29, 2011 Md. Ali Akkas Professor Department of Management Studies EMBA Program University of Dhaka. Subject : ‘Submission of project paper under evening MBA program’. Dear Sir, I, Shah Salahuddin Ahamed, am one of your students in the Evening MBA Program. It is my pleasure to inform you that, I have prepared my project paper which was assigned to me in the topic of 'Investment Banking Under Islamic Shariah Principles - A Case Study on Export Import Bank of Bangladesh Ltd.’ It was quite helpful for me to complete the paper under your prudent supervision. The theoretical knowledge that I have achieved during the MBA sessions helped me a lot to understand the practical business operations in different sectors and to prepare the report smoothly as well. My special gratitude to you & the Department of Management Studies and thanks to Exim Bank Ltd. authority. I have given my best effort to analyze the Investment Banking System in Exim Bank Ltd under Islamic Shariah principals, though I have lot to know & learn about Islamic Banking...

Words: 271 - Pages: 2

Premium Essay

Investment Banking Under Islamic Shariah Principles:

...Investment Banking Under Islamic Shariah PRINCIPLES: A Case Study on Export Import Bank of Bangladesh Ltd By Md. Mostak Ali ID: 3-03-03-025 A Project Report Submitted To Professor Md. Ali Akkas Department of Management Studies In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSSINESS ADMINISTRATION UNIVERSITY OF DHAKA Dhaka 1000 September, 2011 September 29, 2011 Md. Ali Akkas Professor Department of Management Studies EMBA Program University of Dhaka. Subject : ‘Submission of project paper under evening MBA program’. Dear Sir, I, Shah Salahuddin Ahamed, am one of your students in the Evening MBA Program. It is my pleasure to inform you that, I have prepared my project paper which was assigned to me in the topic of 'Investment Banking Under Islamic Shariah Principles - A Case Study on Export Import Bank of Bangladesh Ltd.’ It was quite helpful for me to complete the paper under your prudent supervision. The theoretical knowledge that I have achieved during the MBA sessions helped me a lot to understand the practical business operations in different sectors and to prepare the report smoothly as well. My special gratitude to you & the Department of Management Studies and thanks to Exim Bank Ltd. authority. I have given my best effort to analyze the Investment Banking System in Exim Bank Ltd under Islamic Shariah principals, though I have lot to know & learn about Islamic Banking...

Words: 26574 - Pages: 107

Premium Essay

Sukuk General Review: Challenges on Shariah-Compliance & Accounting Implications

...Challenges on Shariah-compliance & Accounting Implications Monsif MOUMNI Introduction The growth and popularity of the use of Islamic finance has been exceptional since the central bank of Bahrain issued the first sovereign sukuk in 2001. In fact, the size of the global Islamic finance market exceeds US$2 trillion. Although the sukuk market is still small compared to the conventional bond market, sukuk are considered as the most successful financial product among the Islamic financial institutions and also considered as one of the fastest industries in its growth in international financial landscape. Sukuk generally refers to Shariah-compliant bonds; the spread in a striking pace of sukuk in GCC1 and Muslim-majority countries in Asia has made from it a very important way for fund raising. Recently sukuk have also been attracting attention in non-Islamic countries in Europe, Asia, and Africa; for example in 2014, sovereign sukuk were issued by the United Kingdom, Hong Kong, Luxembourg, and South Africa (Lackmann, 2015). The main objective of this paper is to provide a panoramic picture describing the key elements characterizing sukuk from different perspectives combined. In this review we will first try to present the general context of sukuk i.e. the definition, types, and the basic structure of sukuk, and also to make a contrast of conventional bonds with sukuk to outline the main differences, and next we will discuss about controversy and Shariah concerns with...

Words: 2603 - Pages: 11

Premium Essay

Economic

...Introduction Shariah principles are the foundation for the practice of Islamic finance through the observance of the tenets, conditions and principles espoused by Shariah. Comprehensive compliance with Shariah principles would bring confidence to the general public and the financial markets on the credibility of Islamic finance operations. Bank Negara Malaysia (the Bank) places great importance in ensuring that the overall Islamic financial system operates in accordance with Shariah principles. This is to be achieved through the two-tier Shariah governance infrastructure comprising two (2) vital components, which are a centralised Shariah advisory body at the Bank and an internal Shariah Committee formed in each respective Islamic financial institution (IFI). The Shariah Advisory Council of Bank Negara Malaysia (SAC) is a body established under section 51 of the Central Bank of Malaysia Act 2009 that has positioned the SAC as the apex authority for the determination of Islamic law for the purposes of Islamic financial business. The mandates of the SAC, among others, are to ascertain the relevant Islamic law on any financial matter and issue a ruling upon reference made to it, as well as to advise the Bank and the IFI concerned on any Shariah issues relating to Islamic financial business operations, activities or transactions. SECTION I: General Requirements of the Shariah Governance Framework Principle 1: It is the duty and responsibility of an IFI to establish...

Words: 2704 - Pages: 11

Free Essay

Islamic Finance

...SECTION A: LIST OF SYARIAH COMPLIANCE COMPANY In Malaysia, Kuala Lumpur Stock Exchange Shari’ah Index (KLSESI) was introduced in 1997 by Securities Commission (SC). KLSESI was introducing to provide an avenue for Muslims investors to participate in equity investment in accordance to Shari’ah principle. This index comprised of firms listed on both the Main and the Second Board, and Masdeq at KLSE (Bursa Malaysia). KLSESI is the tool in Islamic capital market (ICM) plan where the activities carried out in that market are not conflict with the conscience of Muslims and religion of Muslim. Besides, the ICM represents an assertion of religious law in capital market transactions where the market should be freed from the involvement of prohibited activities by Islam. Under this index, it focuses on the core activity and level of interest income of company to determine whether a particular company is permissible or not in the index. Before companies listed on KLSE, they should make sure that their investments are permissible under Shari’ah law. The activities are considered impermissible if the operations are based on the interest; involve gambling, manufacture or sale haram products or contains elements of gharar. Furthermore, for companies that compromised both permissible and non-permissible elements, there are several additional criteria. The criteria are: a) The core activities of the companies must not contravene the principles of Shari’ah as outlined in the four criteria...

Words: 1620 - Pages: 7

Free Essay

History Management

...History banks Part 1 changes in executive mgt and shariah advisory board Qualification of top mgt and mgt team Part 2 changes in banking philosophy or principles Mision vision obj corporate strategy Part 3 changes in banking practices and practical application of islamic bank Implement islamic or not Trading activities Product Annual reports Donation Sponsorship Part 4 problem Effect Solution Financial statement PART ONE Board of Directors | |   Mr. Salah Mohd I Al Jaidah Chairman | |   Dr. Saleh Jameel Malaikah Deputy Chairman | | |   | Dr. Fouad Hayel Saeed Director | | Mr. Shahzad Shahbaz Director | | |   | Mr. Subrata Kumar Mitra Director | | Mr. Syed Maqbul Quader Director | | | | | |   | |   | Dato’ Dr Md Khir Bin Abdul Rahman Independent Non Executive Director | | Dato’ Noorazman Bin Abd Aziz Independent Non Executive Director | | |   | Dato' Sri Dr. Muhammad Shafee Bin Muhammad Abdullah Independent Non Executive Director | |   | | Management Team |   | | Datuk Mohamed Azahari Kamil Chief Executive Officer | | | |   | | Roslan Hj Shafiei Chief Operating Officer | | | Abdul Latif Bujang Masli Chief Financial Officer | | |   | | | Sharifah Normah Acting Head, Risk Management | | | Azidy Bin Daud Treasurer | | |   | | | Faris Yahya Head, Investment Banking | | | Zamri Shariff Head, Asset...

Words: 850 - Pages: 4