From Arabnews.com: The International Islamic Fiqh Academy (IIFA) is currently striving to formulate a clear-cut stand on the issue of securitization (tawriq) from an Islamic perspective, according to its Secretary-General Abdul Salam Al-Ebadi.

The controversy still continues over the issue because many scholars are skeptical of securitization, the process by which debt is converted into a traded instrument, like a bond, and is then bought and sold. Investors are paid dividends on a regular basis as debt-holders make payments on the principals plus the fees involved in obtaining loans…….Full Article: Source