Fri, Jul 25, 2014
A A A
Welcome bhaimia
RSS

Islamic Finance Briefing - Categorized | Capital Market (Equity, Mutual Funds), Emerging Trends, Investment more

Shariah finance doesn’t need more equity on assets

Posted on 03 May 2010

From Gulf-times.com: To promote equity instruments such as mudaraba and musharaka as ‘ideal’ modes of financing in Islamic finance seems to ignore the lessons of Transactions Cost Economics that equity requires costly monitoring.
Moreover, in current applications and fiqh interpretations of mudaraba, the investor (rabb ul mall) does not have the monitoring or governance rights that would be appropriate for an equity investor. ……………………………………..Full Article: Source

 
Article link

This post was written by:

Laxman - who has written 19163 posts on Opalesque Islamic Finance Briefing.


Contact the author

Comments are closed.

July 2014
M T W T F S S
« May    
 123456
78910111213
14151617181920
21222324252627
28293031