General Musharakah Certificate

Definition of "General Musharakah Certificate"

A proposed financial instrument for government for raising funds on the basis of partnership. The government can sell these certificates for investment in public sector projects likely to generate revenues such as power plants, bridges, colleges and universities. All providers of fund would be pro rata owners of the underlying assets. The certificates would be entitled to the income generated from the operation of the assets. The holders would be able to trade the certificates at the market going rate. However, if the certificates are issued even before any tangible assets are created, the government can issue them only at par value.