TY  - BOOK
AU  - Sole,Juan
AU  - Jobst,Andreas A.
AU  - Sole,Juan
TI  - Operative Principles of Islamic Derivatives: Towards a Coherent Theory 
T2  - IMF Working Papers; Working Paper
SN  - 1463938403 :
SN  - 1018-5941
PY  - 2012///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Business Economics: General
KW  - imf
KW  - Derivatives
KW  - Gharar
KW  - Hedging
KW  - Ijara
KW  - Islamic Law
KW  - Malaysia
N2  - Derivatives are few and far between in countries where the compatibility of financial transactions with Islamic law requires the development of shari'ah-compliant structures. Islamic finance is governed by the shari'ah, which bans speculation and gambling, and stipulates that income must be derived as profits from the shared generation of goods and services between counterparties rather than interest or a guaranteed return. The paper explains the fundamental legal principles underpinning Islamic finance with a view towards developing a cohesive theory of derivatives subject to shari'ahprinciples. After critically reviewing accepted contracts and the scholastic debate surrounding existing financial innovation in this area, the paper offers an axiomatic perspective on a principle-based permissibility of derivatives under Islamic law
UR  - http://elibrary.imf.org/view/IMF001/12664-9781463938406/12664-9781463938406/12664-9781463938406.xml
UR  - http://www.imfbookstore.org/IMFORG/9781463938406
ER  -