Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin
Sukuk market has grown tremendously and has gained attention from many countries.Various innovation has been designed to ensure the marketability of such instruments. However, these innovations have generated various shariah and financial issues and controversies. Among others, is the issue of the s...
| Main Authors: | , , |
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| Format: | Research Reports |
| Language: | English |
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Research Management Institute (RMI)
2013
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/23727/1/LP_ROSLINA%20MOHAMAD%20SHAFI%20RMI%2013_5.pdf |
| _version_ | 1796901784458887168 |
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| author | Mohamad Shafi, Roslina Muhamad Ariffin, Nur Afizah Salamudin, Norhana |
| author_facet | Mohamad Shafi, Roslina Muhamad Ariffin, Nur Afizah Salamudin, Norhana |
| author_sort | Mohamad Shafi, Roslina |
| collection | UITM |
| description | Sukuk market has grown tremendously and has gained attention from many countries.Various innovation has been designed to ensure the marketability of such instruments. However, these innovations have generated various shariah and financial issues and controversies. Among others, is the issue of the sukuk risk whereby the risk structure needs to be disclosed and conformed with shariah values. Even though sukuk is recognized as one of the Islamic financial products, it does not necessarily mean that it is free from the elements of risk. Even Islam has acknowledged the concept of risk as al ghurm bi al ghunm (entitlement to return is related to the liability of risk) in the application of muamalah (transaction, trade). Consequently, the aim of this paper is to suggest the application of sukuk with embedded options as to mitigate the risk faced by sukuk holders. Previous research has suggested the use of embedded options as a way to mitigate the risk. This paper will cover and discuss the issues pertaining to sukuk structures, the shariah values and the risk mitigation technique. A proposed sukuk structure and the mathematical model for finding the value of the real asset will also be covered in this paper. This study concludes with limitations of the study and recommendation for future research. |
| first_indexed | 2024-03-06T01:55:18Z |
| format | Research Reports |
| id | uitm.eprints-3727 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T01:55:18Z |
| publishDate | 2013 |
| publisher | Research Management Institute (RMI) |
| record_format | dspace |
| spelling | uitm.eprints-37272019-04-05T03:16:01Z https://ir.uitm.edu.my/id/eprint/23727/ Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin Mohamad Shafi, Roslina Muhamad Ariffin, Nur Afizah Salamudin, Norhana Finance, Islamic Sukuk market has grown tremendously and has gained attention from many countries.Various innovation has been designed to ensure the marketability of such instruments. However, these innovations have generated various shariah and financial issues and controversies. Among others, is the issue of the sukuk risk whereby the risk structure needs to be disclosed and conformed with shariah values. Even though sukuk is recognized as one of the Islamic financial products, it does not necessarily mean that it is free from the elements of risk. Even Islam has acknowledged the concept of risk as al ghurm bi al ghunm (entitlement to return is related to the liability of risk) in the application of muamalah (transaction, trade). Consequently, the aim of this paper is to suggest the application of sukuk with embedded options as to mitigate the risk faced by sukuk holders. Previous research has suggested the use of embedded options as a way to mitigate the risk. This paper will cover and discuss the issues pertaining to sukuk structures, the shariah values and the risk mitigation technique. A proposed sukuk structure and the mathematical model for finding the value of the real asset will also be covered in this paper. This study concludes with limitations of the study and recommendation for future research. Research Management Institute (RMI) 2013 Research Reports NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/23727/1/LP_ROSLINA%20MOHAMAD%20SHAFI%20RMI%2013_5.pdf Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin. (2013) [Research Reports] <http://terminalib.uitm.edu.my/23727.pdf> (Unpublished) |
| spellingShingle | Finance, Islamic Mohamad Shafi, Roslina Muhamad Ariffin, Nur Afizah Salamudin, Norhana Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin |
| title | Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin |
| title_full | Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin |
| title_fullStr | Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin |
| title_full_unstemmed | Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin |
| title_short | Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin |
| title_sort | sukuk structure with embedded options as a risk mitigation tool roslina mohamad shafi nur afizah muhamad ariffin and norhana salamudin |
| topic | Finance, Islamic |
| url | https://ir.uitm.edu.my/id/eprint/23727/1/LP_ROSLINA%20MOHAMAD%20SHAFI%20RMI%2013_5.pdf |
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