Analysis of sukuk cross-default clause: a fiqh perspective

In recent time, there have been incessant Sukuk default cases which are posing a severe challenge to the growth of the nascent Islamic finance Industry. Institutions and principal officers in the industry are often concern about appropriate mechanisms that can protect the right and interest of the S...

Full description

Bibliographic Details
Main Authors:	Zakariyah, Habeebullah, saheed, Abdullahi Busari
Format:	Article
Language:	English
Published:	IIUM Press, International Islamic University Malaysia 2019
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/76832/ http://irep.iium.edu.my/76832/ http://irep.iium.edu.my/76832/1/76832%20-%20Analysis%20of%20sukuk%20cross-default%20clause%20a%20fiqh%20perspective.pdf

id	iium-76832
recordtype	eprints
spelling	iium-768322019-12-06T08:26:58Z http://irep.iium.edu.my/76832/ Analysis of sukuk cross-default clause: a fiqh perspective Zakariyah, Habeebullah saheed, Abdullahi Busari HG3368 Islamic Banking and Finance In recent time, there have been incessant Sukuk default cases which are posing a severe challenge to the growth of the nascent Islamic finance Industry. Institutions and principal officers in the industry are often concern about appropriate mechanisms that can protect the right and interest of the Sukuk-holders without violating Shari’ah-compliant risk. It is significant to note that there is a difference between Sukuk default and default event. Sukuk defaults happen when the obligor fails in fulfilling their financial obligations as indicated in the contractual agreement. Default event is various circumstances that can trigger Sukuk default. Default event can be in the form of credit risk and moral risk. Cross-default is an example of a default event that has attracted the attention of legal and Shari’ah scholars. Scholars and experts are considering the juristic status of cross-default mechanism that can be used to protect the right and interest of creditors by juxtaposing it with the principles of justice and equity in Islamic law. This paper aims to explore the legality and fairness of cross-default in Islamic jurisprudence. This study explains the concept of cross-default, how it works, review of what constitutes legality and morality of cross-default in Islamic legal theory. The study also employs the juristic analysis method to examine the opinions of contemporary scholars and expert of Islamic finance on the fairness of Sukuk crossdefault. IIUM Press, International Islamic University Malaysia 2019-11-28 Article PeerReviewed application/pdf en http://irep.iium.edu.my/76832/1/76832%20-%20Analysis%20of%20sukuk%20cross-default%20clause%20a%20fiqh%20perspective.pdf Zakariyah, Habeebullah and saheed, Abdullahi Busari (2019) Analysis of sukuk cross-default clause: a fiqh perspective. Journal of Islamic Finance, 8 (2). pp. 50-57. ISSN 2289-2109 E-ISSN 2289-2117 https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/367/168
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Zakariyah, Habeebullah saheed, Abdullahi Busari Analysis of sukuk cross-default clause: a fiqh perspective
description	In recent time, there have been incessant Sukuk default cases which are posing a severe challenge to the growth of the nascent Islamic finance Industry. Institutions and principal officers in the industry are often concern about appropriate mechanisms that can protect the right and interest of the Sukuk-holders without violating Shari’ah-compliant risk. It is significant to note that there is a difference between Sukuk default and default event. Sukuk defaults happen when the obligor fails in fulfilling their financial obligations as indicated in the contractual agreement. Default event is various circumstances that can trigger Sukuk default. Default event can be in the form of credit risk and moral risk. Cross-default is an example of a default event that has attracted the attention of legal and Shari’ah scholars. Scholars and experts are considering the juristic status of cross-default mechanism that can be used to protect the right and interest of creditors by juxtaposing it with the principles of justice and equity in Islamic law. This paper aims to explore the legality and fairness of cross-default in Islamic jurisprudence. This study explains the concept of cross-default, how it works, review of what constitutes legality and morality of cross-default in Islamic legal theory. The study also employs the juristic analysis method to examine the opinions of contemporary scholars and expert of Islamic finance on the fairness of Sukuk crossdefault.
format	Article
author	Zakariyah, Habeebullah saheed, Abdullahi Busari
author_facet	Zakariyah, Habeebullah saheed, Abdullahi Busari
author_sort	Zakariyah, Habeebullah
title	Analysis of sukuk cross-default clause: a fiqh perspective
title_short	Analysis of sukuk cross-default clause: a fiqh perspective
title_full	Analysis of sukuk cross-default clause: a fiqh perspective
title_fullStr	Analysis of sukuk cross-default clause: a fiqh perspective
title_full_unstemmed	Analysis of sukuk cross-default clause: a fiqh perspective
title_sort	analysis of sukuk cross-default clause: a fiqh perspective
publisher	IIUM Press, International Islamic University Malaysia
publishDate	2019
url	http://irep.iium.edu.my/76832/ http://irep.iium.edu.my/76832/ http://irep.iium.edu.my/76832/1/76832%20-%20Analysis%20of%20sukuk%20cross-default%20clause%20a%20fiqh%20perspective.pdf
first_indexed	2023-09-18T21:48:31Z
last_indexed	2023-09-18T21:48:31Z
_version_	1777413612007063552

Analysis of sukuk cross-default clause: a fiqh perspective

Similar Items