Secura India Real Estate Fund, the first Sharia compliant venture capital fund has launched its second scheme of real estate fund with a size of Rs 50 crore. It is promoted by Kozhikode based by Secura Investment Management (India) Pvt. Ltd. [Source]
The motivation to create this blog is to educate the people on Shariah compliance on investment and related products. We will try to summarize the related articles for the easy reader. We are not responsible for any investment decisions. Allah knows the best
Sunday, November 25, 2012
Islamic Finance in India
Secura, a SEBI-registered real estate venture capital fund has been certified as India’s first Shariah compliant real estate VCF. This fund was formed as a contributory trust under the provisions of Indian Trust Act, 1882. The trustee of the Fund is IL&FS Trust Company Ltd. The Shariah certification of the fund is done by Taqwaa Advisory and Shariah Investment Solutions (TASIS). [Link]
Saturday, November 24, 2012
Misconceptions About Islamic Insurance and Takaful
Misconception no 1:
Risk Protection (insurance) is against Tawakkul - total dependence upon Allah (swt).
No human actions change the Will of Allah (swt) for our destiny. Whether a person has insurance/Takaful or not has no effect on future events. However, we are instructed to take precautions and then fully trust and depend upon Almighty Allah (swt): in Hadith narrated by Anas bin Malik when an Arab Bedouin asked Prophet Muhmmad (PBUH), "Shall I leave my camel untied and seek Allah's protection on it, or should I tie it?" The Holy Prophet replied, "Tie your camel and then depend upon Allah (swt)." {as quoted by Sunan Al Tarmizi, 1981,}.
Read more: Link
Friday, November 16, 2012
Tuesday, November 13, 2012
History of Usury Prohibition
Abstract : Usury - lending at interest or excessive interest - has, according to known records, been practiced in various parts of the world for at least four thousand years. During this time, there is substantial evidence of intense criticisism by various traditions, institutions and social reformers on moral, ethical, religious and legal grounds. The rationale employed by these wide-ranging critics have included arguments about work ethic, social justice, economic instability, ecological destruction and inter-generational equity. While the contemporary relevance of these largely historical debates are not analysed in detail, the authors contend that their significance is greater than ever before in the context of the modern interest-based global economy.
A Short Review of the Historical Critique of Usury by Wayne A.M. Visser and Alastair McIntosh
Infrastructure crisis in India and Solution
At the end S A Aiyer in his article conclude that "Infrastructure now faces a huge funding gap of hundreds of billions of dollars. This cannot be filled by additional government funding. The government is already struggling to contain a huge fiscal deficit. Any spare cash will go to pre-election goodies, not projects.
So, infrastructure is being starved of both private and public sector funds. India's future growth is in danger. Urgent measures are required to make the sector viable and capable of attracting capital."
What is Sukuk?
A secure return through an ethical investment.
Sukuk commonly refers to the Islamic equivalent of bonds. However, as opposed to conventional bonds, which merely confer ownership of a debt, Sukuk grants the investor a share of an asset, along with the commensurate cash flows and risk. As such, Sukuk securities adhere to Islamic laws sometimes referred to as Shari’ah principles, which prohibit the charging or payment of interest.
The emergence of Sukuk has been one of the most significant developments in Islamic capital markets in recent years. Put simply, Sukuk instruments act as a bridge. They link their issuers, primarily sovereigns and corporations in the Middle East and Southeast Asia, with a wide pool of investors, many of whom are seeking to diversify their holdings beyond traditional asset classes. In this way, funds raised through Sukuk can be allocated in an efficient and transparent way to infrastructure initiatives and other deserving projects in the 56 member countries of IDB, as well as communities in over 100 non-member countries. [Source]
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