The Islamic Capital Market: Analysis Of The Shariah Screening Methodology By The Securities Commission Of Malaysia

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Date
2016-11
Authors
Mohd Omar, Taha
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Publisher
Universiti Sains Malaysia
Abstract
This research intends to identify the current Shariah screening methodology implemented by the Securities Commission of Malaysia in the Malaysian Islamic capital market. The research consists of three objectives. Firstly, to identify the current Shariah screening methodology implemented by the Securities Commission of Malaysia, secondly to attain the supporting justifications of the benchmarks in the Shariah screening methodology, thirdly to analyze the supporting justifications of the benchmarks in the Shariah screening methodology using Shariah primary and secondary sources. In order to achieve the above objectives, field research and library research were carried out. Field research was pursued by carrying out in-depth interview sessions to identify the current Shariah screening methodology implemented by the Securities Commission of Malaysia and to attain the supporting justifications of the benchmarks in the Shariah screening methodology from five of the Securities Commission’s Shariah Advisory Council members. Next, library research was pursued to analyze the given justifications using Shariah primary and secondary sources. The findings of this research are, the benchmarks of the Shariah screening methodology applied by the Securities Commission of Malaysia in the Islamic capital market is not accurately in line with the halalan toyyiban concept and Islamic spirituality. It also violates the Shariah law and the implication affects the spirituality of the profit gained from the investments.
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Keywords
The shariah screening methodology , by the securities commission of Malaysia
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