Investment Sukuk - Appendix C (Definitions)

Transcription

1. Shari ’ah Standard No. (17): Investment Sukuk Appendix (C) Definitions Securitisation (Tawreeq) Securitisation is known in Arabic terminology as Taskik (issues) and Tasnid (securities). Securitisation is a process of dividing ownership of tangible assets, usufructs or both into units of equal value and issue securities as per their value. Issue Contract Issue contract is the contract that form basis for issuance of the investment certificates. Issuer of Investment Certificate Issuer of investment certificate is the party who uses the realised funds in a Shari’ah-compliant investment instrument. The issuer could be a firm, an individual, a government or a financial institution. The issuer may delegate, for a consideration or commission, the process of arranging the operation of the issue to a financial intermediary, which may be stipulated by the issue prospectus. Issue Agent It is an intermediary institution that manages the process of issue and performs all procedural arrangements pertaining to the issue on behalf of the issuer against a specific fee to be agreed upon or to be stated in the prospectus of issue. The relationship between the issuer and the issue agent is governed agency contract with remuneration. Issue Manager Issue manager is the intermediary institution that acts for remuneration on behalf of the subscribers in executing the issue contract. 487
2. Shari ’ah Standard No. (17): Investment Sukuk Payment Underwriter Payment underwriter is the intermediary institution that undertakes to pay dues of certificate holders after when realised. Investment Manager Investment manager is the party appointed by the issuer or the issue manager to perform all or part of investment operations as indicated in the issue prospectus. Investment Trustee Investment trustee is the intermediary financial institution charged with protecting the interests of certificate holders, supervising the performance of the issue manager and safe custody of documents and guarantees for consideration stipulated in the issue prospectus on the basis of agency contract Trading of Certificates Trading of certificates refers to disposal of the ownership right contained in the certificate through selling, pledging, gift or any other permissible means of disposal. Muzara’ah (Sharecropping) Sharecropping is partnership in crops in which one party presents land to another for cultivation and maintenance in consideration for a common defined share in the crop. Musaqat (Irrigation) Irrigating partnership is a partnership that depends on one party presenting designated plants/trees that produce edible fruits to another in order to work on their irrigation in consideration for a common defined share in the fruits. Mugharasah (Share-Agriculture) Agricultural partnership is a partnership in which one party presents a treeless piece of land to another to plant trees on it on the condition that they share the trees and fruits in accordance with a defined percentage. 488