ISLAMIC FINANCE RESEARCHES
Year:2015 | Volume:4 | Issue:1 (7)|Papers Count:6

Common stock is the most important and popular instrument in our capital market. Every day, large volumes of stocks are traded on the Tehran Stock Exchange and their ownership is transferred from one investor (natural or fictitious persons) to others. 'Sales' is the term commonly used for this act in capital market and among investors. Our hypothesis is that the common stocks could be traded as object of the sale (Mabi) in the sales contract (aghd al- bay). To test this hypothesis, we used descriptive and analytical method.In the description section, we have defined common stock, explained shareholders' rights and clarified different views about the nature of common stocks. Also we have explained sale contract (aghd al- bay) and conditions of object of the sale (Mabi) according to Imamiah jurisprudence.The conclusion is that a corporation is an independent entity and each shareholder is the co-owner of this contractual entity. The hypothesis is thus confirmed: According to Imamiah jurisprudence, the common stocks could be traded as object of the sale (Mabi) in the sales contract.

Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for financing working capital and meeting short-term liabilities. It is one of the most important financial instruments that constitute a significant portion of issued debt securities in financial markets. Nevertheless, commercial paper, like many other conventional financial instruments, has been structured and issued in western financial markets and because of sharia regulations and conditions, it is not allowed to be issued in Islamic markets or for corporations that are committed to Islamic regulations. But Islamic rules and jurisprudence (fiqh) are flexible enough to permit the use of commercial paper based on various allowed contracts. In this paper, we try to develop models for structuring and issuing commercial paper, applicable to commercial corporations that comply with Islamic rules and regulations.

The central bank, as an institution that directly controls the monetary system of the country, can also pursue goals such as managing interest rates, volume of currency, inflation, unemployment and even income distribution. In some countries (like Iran) it functions as the part of the government and in some other countries the central bank is independent and follows its macro-policies. According to a common belief in economics, central bank independence plays a positive role in fulfilling its objectives and duties. The main hypothesis of this study is that, according to Islamic principles, we can develop a practical model of this independence. In this study we have used comparative method. The results show that based on the Islamic economic principles and its decrees about justice and insistence on preventing measurement unit distortion, we can apply the above model.

One of the strong points of Islamic banking, compared to conventional banking system, is the bank's sharing of both profits and losses of funded activities in the framework of collaborative agreements. The proper implementation of partnership facilities requires respecting religious as well as financial and economic codes. As shown by the evidence, the objections made against the activities of Islamic banking in granting partnership facilities confirm banks’ inability to respect the religious and legal codes of such facilities. Therefore, proposing methods to help Islamic banks implement partnership facilities properly has always attracted the attention of Islamic financing experts. One of the markets that can assist banking systems in the proper implementation of partnership facilities is capital market.This descriptive-analytical study was carried out using library resources. It aimed at verifying this hypothesis: "Project-based funding can assist banks in the proper implementation of partnership facilities through the three stages of demand assessment, monitoring and implementation, and audition and clearance." In fact, this type of interaction between project-based funding and Islamic banking not only facilitates banks' participation in various economic sectors in order to grant participation facilities, but also prepares the ground for the funds to collect money through charging for banking services.

Credit enhancements are methods that are used in structured finance for promoting the credit quality of financial instruments. One of the most important mechanisms for improving the credit quality is Tranching financial instruments. This mechanism is mentioned as a structural and internal credit enhancement. Tranching decreases financing costs and improves the quality of financial instruments. It is based on priority of receiving profit and paying loss.It is important to use this mechanism in Islamic financial instruments. In this research, at first, we explain Tranching mechanism and second, we survey the application of this mechanism in ijarah and murabahah sukuk and then we analyze the compliance of this mechanism with Shariah principles.In this research, we have approved Tranching mechanism in the structure of ijarah and murabahah based on dhaman, insurance, sulh and stipulation.

Aim: Universities can overcome unstable funds as a result of changes or diminished governmental financial resources by relying on benevolent funding. However, the optimal use of this depends on recognition of their probable requirements and potential deviations that despite its evident nature is usually unnoticed.Methodology: Due to the relatively successful experience of Imam Sadiq (a.s.) University in enjoying this type of financing since its establishment, this research has tried to explore those requirements and potential deviations using GT methodology. Findings: After processing the data to reach theory, the model of benevolent university financing is proposed. Results: Based on the theoretical analysis of data obtained from interviews, the extra-university dimensions have been categorized as: first (public administration), second (private or corporate) and third (NGOs or cooperatives). The two main intra-university requirements, categorized as structural and content dimensions, are effective in the efficient utilization of benevolent funding.