Dubai Financial Market (DFM), the Gulf's lone recorded stock trade, has distributed draft rules covering sharia-agreeable supporting, some portion of more extensive endeavors to create Islamic business in the emirate.
The guidelines intend to grow direction on exchanges that as of now need institutionalization, and would be the third arrangement of tenets from the DFM particular to Islamic fund after ones covering values and Islamic securities.
A standard on Islamic supporting could give more noteworthy clarity between counter parties as the business makes a steady move from altered arrangements towards volume exchanges which can be cost-and time-powerful.
The guidelines set parameters for legitimate sharia-consistent supporting devices with an accentuation on their hidden contracts and develops the method of reasoning behind them, said Hussein Hamed Hassan, executive of the DFM's Fatwa and Sharia Supervisory Board.
"Maybe the most noteworthy accomplishment of this exceptional standard is illuminating the wild misjudging about the capacity of Islamic banks and money related establishments to practice supporting," he said.
The archive characterizes conceivable substitutes for routine subsidiaries based supporting, including supporting instruments for cash trades, liquidity administration and ensuring against vacillations in record based returns.
Islamic fund takes after religious rule that boycott the charging of intrigue and evade equivocalness in contracts, arrangements which successfully block utilization of conventional subsidiaries, for example, alternatives and swaps.
There are a few supporting apparatuses utilized as a part of Islamic fund yet these can't be utilized for inside and out hypothesis, while certain sorts can't be exchanged and must be completely settled upon development or cancellation.
The DFM said an open meeting period for the draft tenets will close on Nov. 10.
The guidelines intend to grow direction on exchanges that as of now need institutionalization, and would be the third arrangement of tenets from the DFM particular to Islamic fund after ones covering values and Islamic securities.
A standard on Islamic supporting could give more noteworthy clarity between counter parties as the business makes a steady move from altered arrangements towards volume exchanges which can be cost-and time-powerful.
The guidelines set parameters for legitimate sharia-consistent supporting devices with an accentuation on their hidden contracts and develops the method of reasoning behind them, said Hussein Hamed Hassan, executive of the DFM's Fatwa and Sharia Supervisory Board.
"Maybe the most noteworthy accomplishment of this exceptional standard is illuminating the wild misjudging about the capacity of Islamic banks and money related establishments to practice supporting," he said.
The archive characterizes conceivable substitutes for routine subsidiaries based supporting, including supporting instruments for cash trades, liquidity administration and ensuring against vacillations in record based returns.
Islamic fund takes after religious rule that boycott the charging of intrigue and evade equivocalness in contracts, arrangements which successfully block utilization of conventional subsidiaries, for example, alternatives and swaps.
There are a few supporting apparatuses utilized as a part of Islamic fund yet these can't be utilized for inside and out hypothesis, while certain sorts can't be exchanged and must be completely settled upon development or cancellation.
The DFM said an open meeting period for the draft tenets will close on Nov. 10.
Dubai’s emergence as a financial hub for the Middle East led to the formation of the Dubai Financial Market (DFM) in March 2000.
And while global markets may have stumbled in 2008 as the economic downturn kicked in, that didn’t stop Dubai’s bourse from ending the year on a profit. In the year to December 31, the Dubai Financial Market generated an AED605m ($164.7m) net profit amid the financial crisis.
While profits were down from AED972m ($264.6m) the previous year, DFM’s chiefs insisted it was a tidy sum in difficult market conditions. During the same period, revenues reached $247.9m compared with $307.6bn in 2007.
The stock exchange is now one of three exchanges in the UAE followed by Abu Dhabi Securities Market (ADSM) and the Dubai International Financial Exchange.
The Dirham-denominated exchange recorded its biggest growth between 2004 and 2005 when there were significant increases in the volume of shares traded.
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