18.03.2010 - Shariah principles relevant to hedging
From Klgates.com: In structuring the Ta'Hawwut Agreement, ISDA and IIFM have sought to provide a basis to hedge risks that are common in Shariah-compliant transactions in a Shari'ah-compliant way. There is a high correlation between Shariah-compliant investing and socially responsible investing. Shariah investment is constrained by restrictions on the way in which transactions can be carried out and the purposes for which they are entered into. In particular, Shari'ah-compliant financial transactions may not involve "riba" (the charging of interest), "gharar" (unavoidable uncertainty) or "maysir" (gambling or speculation).....................................Full Article: Source
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