Credit Card Usage of College Students

Table of contents                                                        Pages

1. INTRODUCTION                                                         2 - 4

1. CHALLENGE AND INITIATIVES TAKEN IN                                     “MARKET INFRASTRUCTURE AND PRODUCT                   5 – 10                            CASH FLOW ”                        

1. CHALLENGE AND INITIATIVES TAKEN IN                                      “PRICING AND RISK ISSUES ”                                        11 - 15

1. CHALLENGE AND INITIATIVES TAKEN IN                                         “LEGAL FRAMEWORK”                                                16 - 20

1. CONCLUSION                                                        21 - 23

1. BIBLIOGRAPHY                                                        24 - 26

SECTION A

INTRODUCTION

INTRODUCTION

Islamic finance has sometime lost the investment opportunities for Muslims that offer an expected return with low risk. The majority of investment opportunities are based either on stock market with high volatility or on real estate transactions. Since fixed income, interest-bearing bonds are not permissible in Islam, Sukuk are the alternative. Sukuk are asset-based securities while bonds are debt-based securities. Sukuk has developed as one of the most significant mechanisms for raising finance in the international capital markets through islamically acceptable structures. Sukuk is the Arabic term for Bonds or securities structured according to Shariah principles and referred to as Sukuk, Islamic bonds, Islamic debt security or Islamic trust certificates. In addition, Sukuk are securities that comply with the Islamic law and its investment principles, which prohibits the charging, paying of interest. Sukuk is a certificate of equal value representing undivided shares in ownership of tangible assets, usufruct and services or (in the ownership of the assets of particular projects or investment activity.

Moreover, Sukuk is an asset-backed, stable income, tradable and Shariah compatible trust certificates. The primary condition of issuance of Sukuk is the existence of assets on the balance sheet of the government, the monetary authority, the corporate body, the banking and financial institution or any entity which wants to mobilize the financial resources. The identification of suitable assets is the first and arguably most integral step in the process of issuing Sukuk certificates.

Sukuk certificates serve to replicate the functions of conventional bonds and tradable securities in resources mobilization from markets and injecting liquidity into the enterprise or government and in providing stable resource of income for investors. Moreover, investing in Sukuk issuances involves the funding of trade or production of tangible assets. So, this section will state the challenges facing the management of financial risks of Sukuk that are the challenge of institutional reorganization.

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