Islamic stock exchange proposal needs govt, business support
A former president of the Kuala Lumpur Stock Exchange has said a new kind of bourse, organized along Islamic financial principles, would offer a necessary alternative to conventional exchanges in Muslim markets. One of many commentators suggesting an Islamic system would have reduced or avoided the harm of the Global Financial Crisis, Mohd Salleh Abdul Majid has called for governments and around 100 companies each from the Organisation of the Islamic Conference’s (OIC) wealthier countries to assist in setting up a new international, internet-based market. This would provide new investment options to whole new demographics: there is a demand for alternatives even in richer countries and only 27 of the 51 OIC nations currently have stock exchanges.
Under an Islamic system, charging and paying interest is forbidden in the traditional sense. There are also restrictions on what kind of companies may receive investment and on the buying and selling of debt. There has recently been a big rise in the number of countries and governments raising finance through sukuk, or Islamic-compliant bonds, especially in Malaysia and Indonesia.
source & article: Bernama
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