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Islamic capital markets and instruments: study guide three

Learning outcomes

Chapter 1: Overview of global Islamic capital market developments

  • Describe the role of the Islamic capital market (ICM).
  • Identify essential components of Islamic capital markets.
  • Explain the development phases of ICM.

Chapter 2: Islamic capital markets and instruments

  • Identify and describe features and  types of Islamic capital markets and instruments.

Chapter 3: Growth and development of Islamic capital markets

  • Explain factors that contribute to the growth and development of Islamic capital markets.
  • Explain the role(s) of international agencies in the global Islamic capital market.

Chapter 4: Essential Shari'ah principles governing the Islamic capital market (1)

  • Explain the purpose of Islamic capital markets in meeting Shari'ah requirements.
  • Identify and explain Shari'ah governing principles of Islamic capital market instruments.

Chapter 5: Essential Shari'ah principles governing the Islamic capital market (2)

  • Describe Shari'ah governance structures and mechanisms based on relevant frameworks or guidelines.
  • Identify and apply relevant Shari'ah standards and guidelines on Islamic capital market products.

Chapter 6: Islamic bonds

  • Describe the process of securitisation and its various types.
  • Identify the features, types and mechanism of Islamic bonds.
  • Explain the features of Islamic bonds as practiced in Malaysia.

Chapter 7: Islamic Sukuks

  • Describe the features, types and mechanism of Sukuks.
  • Explain recent trends of Sukuks.

Chapter 8: Islamic asset-backed securities

  • Explain the salient features, types and mechanism of Islamic asset-backed securities.
  • Explain and distinguish underlying contracts of Islamic asset-backed securities.
  • Identify issues pertaining to the issuance and trading of Islamic bonds and Sukuk.

Chapter 9: Islamic equity screening criteria

  • Explain investing through Islamic equity.
  • Describe the principles governing  Shari'ah stock screening.
  • Describe the cleaning mechanisms for tainted income. 
  • Explain various Islamic indices for equity market.

Chapter 10: Islamic mutual funds/unit trusts: an overview

  • Describe the features and types of conventional mutual funds/unit trusts.
  • Explain the legal structure of mutual funds/unit trusts.
  • Identify the basic structure of Islamic mutual funds/units trusts.


Chapter 11: Islamic mutual funds /unit trusts: contracts and products

  • Identify appropriate structures for Islamic mutual funds / unit trusts.
  • Describe  other appropriate forms of Islamic funds.

Chapter 12: Islamic real estate investment trusts

  • Explain the rationale and benefits of Islamic real estate investment trusts (IREITs).
  • Describe the features, types and mechanisms of  IREITs.
  • Identify appropriate structures for  IREITs.


Chapter 13: Islamic structured products and derivatives

  • Identify relevant financial risks in Islamic finance.
  • Explain the need for Islamic structured products / Islamic derivatives.
  • Describe the features and  function of forwards, futures, options and swaps from an Islamic perspective.



Chapter 14: Principles and contracts underlying Islamic structured products

  • Describe the principles pertaining to commonly used contracts in Islamic structured products/derivatives  – 'Urbun, Salam and Wa'd.
  • Identify challenges facing Islamic structured products/derivatives.