Publication:
Al-manzumat al-qanuniyat wal raqabiyat wa atharuha fi tahqiq himayat hamlat al-sukuk: tajribat Maliziya
Abstract
One of the basics of the regularity of the Islamic financial industry is that it is subject to many legal and regulatory protections that directly or indirectly affected the progress of its financing and investment activities. The Islamic capital market sector, especially sukuk, is one of the most affected products. However, the tradability of sukuk at the international and local levels may be hindered by differences in the legal system and jurisprudential schools of thought, which may lead to a lack of certainty and a defect in the applicable laws. There is no doubt that investing in sukuk requires providing reassurance and confidence from investors on the abundance of the necessary protection from the law, the supervisory apparatus, the unity of the regulatory framework and its adequacy with the nature of sukuk. In this context, this research comes to study the legal and supervisory system applied to sukuk in Malaysia and how to it help sactualize sukuk-holders� protection. A descriptive and analytical approach were employed to study the status of this system and the relevant data and sources, along with its analysis, to derive the elements of protection for sukuk holders.The research finds that the most important objectives of the legal and regulatory system lie in gaining the confidence of investors, providing reassurance, transparency, and consolidating justice, the difference in laws and the instability of regulatory systems are stumbling blocks to all that. It is noteworthy that the development of the Islamic finance industry is in urgent need to either have its own regulatory framework or to improve the existing ones to address challenges or reduce them. It should be given competitive opportunities with the conventional financial industry on an equal footing.
Keywords
Legal and regulatory framework , Sukuk , Sukuk holders� protection , Malaysian experience
Citation
Mikail, S. A. (2021). The legal and regulatory system and their impact on achieving the protection of sukuk holders: the Malaysian experience. International Journal of Al-Turath In Islamic Wealth and Finance, 2 (3), pp. 96-117.
Publisher
IIUM Press