Assalamualaikum and hi everyone! welcome to our blog. Here's a little bit briefly about Islamic Capital Market in Malaysia. the Islamic Capital Market (ICM) operates as a complementary market to the traditional capital market and acts as a component of Malaysia's total capital market. In general, all Islamic capital market instruments and organizations must adhere to Shariah principles, which include prohibiting riba (interest), applying al bai' (trade and commerce), avoiding gharar (ambiguity) in contractual agreements, and refraining from producing prohibited goods like as wine, pork, and tobacco.
Islamic capital markets play an important role as intermediaries between fund demanders and providers for shariah-compliant long-term project financing, as well as providing a variety of financial services such as underwriting, financial advising, trusteeship, and guarantees. It provides investors and institutions providing Islamic financial services (IFS) with a broader array of asset options, allowing them to diversify risks to fulfil their various needs.
The Islamic capital market enhances liquidity availability by allowing secondary trading of securities. Islamic capital market instrument divided into 6 structure, which include sukuk, shariah-compliant equities, islamic funds, private equity and ventures, islamic derivatives, and islamic structured products.
