diyanah islamic financial services pvt ltd

DIYANAH ISLAMIC DIYANAH ISLAMIC FINANCIAL SERVICES FINANCIAL SERVICES

PVT LTD.PVT LTD.Corporate Member Islamabad Stock Exchange.Corporate Member Islamabad Stock Exchange.

Islamic Capital Market. The Role Of a Shariah Islamic Capital Market. The Role Of a Shariah Compliant Brokerage HouseCompliant Brokerage House

Pakistan Premier Islamic Brokerage CompanyPakistan Premier Islamic Brokerage Company

CONCEPTCONCEPT

Islamic Capital Market (ICM) means a Islamic Capital Market (ICM) means a market where all the investments, market where all the investments, financing activities and products are financing activities and products are structured in accordance with shariah structured in accordance with shariah principles.principles.

DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS

How ICM Functions?How ICM Functions?

ICM are supposed to do all the useful ICM are supposed to do all the useful functions of conventional capital market functions of conventional capital market and many more with justice and equitable and many more with justice and equitable distribution with Islamic orientation and distribution with Islamic orientation and growth objectives.growth objectives.


WorkingWorking

Today the ICM seems parallel to the Today the ICM seems parallel to the conventional market and provide investors conventional market and provide investors with the alternative investment with the alternative investment opportunities according to the Islamic opportunities according to the Islamic philosophy.philosophy.


Globally Available ICM Products & Globally Available ICM Products & ServicesServices

Sukuk MarketSukuk Market

Islamic Equity & Income fundsIslamic Equity & Income funds

Islamic Equity MarketIslamic Equity Market

Islamic Stock BrokingIslamic Stock Broking

Islamic Structured ProductsIslamic Structured Products

Shariah Compliant DerivativesShariah Compliant Derivatives


Islamic Capital Market Scenario in Islamic Capital Market Scenario in PakistanPakistan

Pakistan is a late starter to systematically Pakistan is a late starter to systematically promote Islamic capital market as promote Islamic capital market as compare to other countries of the region, compare to other countries of the region, and it grows significantly before the and it grows significantly before the financial crises started in 2008. Later on financial crises started in 2008. Later on we witnessed a decline trend in growth we witnessed a decline trend in growth and development in this sector.and development in this sector.


ICM Products & Services in ICM Products & Services in PakistanPakistan

Sukuk marketSukuk market

Islamic FundsIslamic Funds

Shariah Compliant Stocks & Islamic IndexShariah Compliant Stocks & Islamic Index


Reasons for Stagnant GrowthReasons for Stagnant Growth

Lack of interest of the regulatorsLack of interest of the regulators Absence of an efficient & effective Shariah Absence of an efficient & effective Shariah

Advisory Board for capital MarketAdvisory Board for capital Market Unavailability of products rangeUnavailability of products range Lack of co-ordination regarding transfer of Lack of co-ordination regarding transfer of

information and knowledge to the information and knowledge to the investorsinvestors


The Role of Shariah The Role of Shariah Compliant Brokerage Compliant Brokerage

House in the Development House in the Development of ICMof ICM


Islamic Equity MarketIslamic Equity Market

If we compare our Islamic capital market to the Global If we compare our Islamic capital market to the Global markets, we have seen that many products and markets, we have seen that many products and services are not available for our investors.Shariah services are not available for our investors.Shariah compliant brokerage is one of them.compliant brokerage is one of them.

In Pakistan, only few Brokerage Houses have Islamic In Pakistan, only few Brokerage Houses have Islamic window and offers limited services. window and offers limited services.

A large number of investors are unaware about A large number of investors are unaware about Shariah compliant Shares and KMI30 index.Shariah compliant Shares and KMI30 index.


Why We Need a complete Shariah Why We Need a complete Shariah Comliant Brokerage House?Comliant Brokerage House?

The communication gap which persist between the The communication gap which persist between the investors and Islamic Institutions, can be bridged by investors and Islamic Institutions, can be bridged by Shariah Compliant Brokerage Houses, to helps and Shariah Compliant Brokerage Houses, to helps and create the awareness of shariah compliant stocks to the create the awareness of shariah compliant stocks to the investors.investors.

To create alternative investment avenue and products, To create alternative investment avenue and products, which is secure, return oriented, and Halal also.which is secure, return oriented, and Halal also.

To eliminate unethical way of trading and discourage To eliminate unethical way of trading and discourage RIBA from capital market.RIBA from capital market.


Step Towards Islamic Stock Step Towards Islamic Stock Exchange Exchange

Formation of Shariah Compliant Brokerage houses, will be a first Formation of Shariah Compliant Brokerage houses, will be a first step toward the formation of a Islamic Stock Exchange and “DIFS” step toward the formation of a Islamic Stock Exchange and “DIFS” is the beginning which prove after one year that IBH are is the beginning which prove after one year that IBH are commercially viable and that provide courage to rest of the commercially viable and that provide courage to rest of the brokerage houses either to open a window or a separate Islamic brokerage houses either to open a window or a separate Islamic Brokerage company.Brokerage company.

Formation of Islamic Regulatory body to form Regulations & ensure Formation of Islamic Regulatory body to form Regulations & ensure compliances.compliances.

Islamic Exchange will be a place where like minded investors will Islamic Exchange will be a place where like minded investors will generate Halal earnings, and the project financers can generate the generate Halal earnings, and the project financers can generate the equity financing without any doubt and hassle.equity financing without any doubt and hassle.


ICM as an integral part of Islamic ICM as an integral part of Islamic Financial SystemFinancial System

Islamic capital market Islamic capital market to provide long term to provide long term fund raising and fund raising and investment by investment by enhance depth & enhance depth & liquidity of Islamic liquidity of Islamic financial system.financial system.

FINANCIAL CYCLEFINANCIAL CYCLE

Islamic Banking

Islamic Capital Market

Takaful


Role of Islamic Banks in the Role of Islamic Banks in the development of Islamic SEdevelopment of Islamic SE

Regulatory Authority should design, explore and Regulatory Authority should design, explore and implement a strategy, where a Islamic minded implement a strategy, where a Islamic minded businessman feel comfortable to approach Islamic businessman feel comfortable to approach Islamic Banks and easily avail his financial needs and on Banks and easily avail his financial needs and on maturity, loans can be converted into shares and will maturity, loans can be converted into shares and will finally listed in Islamic stock exchange. Wherebyfinally listed in Islamic stock exchange. Whereby

Depth of the Islamic Stock Exchange will be increasedDepth of the Islamic Stock Exchange will be increased Clients of the banks will be saved to bear financial cost.Clients of the banks will be saved to bear financial cost. Islamic Banks will remain liquid.Islamic Banks will remain liquid. Decrease in Bad Debts and eliminates overvaluation of the Decrease in Bad Debts and eliminates overvaluation of the

project.project. Industrial growth will be enhancedIndustrial growth will be enhanced..


Ending NoteEnding Note

These were few suggestions regarding These were few suggestions regarding development of Islamic Capital Market, for development of Islamic Capital Market, for which the regulatory authorities will think which the regulatory authorities will think over that how to develop and implement over that how to develop and implement strategies to explore and cover Potential strategies to explore and cover Potential segment of Islamic Capital Market.segment of Islamic Capital Market.

THANK YOU very much to all the THANK YOU very much to all the participantsparticipants


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