Speakers at a workshop on Wednesday emphasised enacting separate laws and regulations for Sukuk or Shariah-based bonds as the instruments are different in features from the traditional fixed-income ones.
"Despite being a thriving industry, Bangladesh is yet to formulate a comprehensive legal and regulatory framework for the Islamic finance mechanism," Bangladesh Bank deputy governor Ahmed Jamal told the event as chief guest.
The online research workshop on "Introducing Sukuk in Bangladesh: Key Issues" was held at the Bangladesh Institute of Bank Management (BIBM).
Dr. Mohammad Kabir Hassan, professor of New Orleans University of USA, was present in the research workshop as the special guest.
Mohammed Sohail Mustafa CFA, associate professor and director (Training and Certification Programme) of the BIBM delivered the welcome address, with Dr. Md. Akhtaruzzaman, director general of the BIBM, in the chair.
In his keynote presentation, Dr. Md. Mahabbat Hossain, assistant professor at the BIBM, stressed the need for reducing the knowledge gap about Shariah-based products through human capital development.
"For developing the Sukuk market and its efficient operation, a talent pool well conversant with the Shariah and operational regulations is crucially needed," he said.
Shariah is a fundamental issue in the Sukuk structuring and operations as most of the investors are very sensitive about Shariah compliance, he said, adding that those who are responsible for governing the instruments will have to gain trust of the mass people.
In case of any default, the trustee and special purpose vehicle (SPV) will have to play a vital role in protecting the interest of the investors, said Mr. Hossain.
At the same time, he added, there should be a supportive judiciary system for resolving the Sukuk matters and protecting the interest of the investors.
Other members of the research team were: Mohammed Sohail Mustafa CFA, Associate Professor and Director (Training & Certification Programme) of BIBM; Md. Alamgir, Associate Professor of BIBM; Md. Abdullah Sharif, Secretary General of Central Shariah Board for Islamic Banks of Bangladesh (CSBIB); Mezbah Uddin Ahmed, Researcher of ISRA (Malaysia).
Dr. Barkat-e-Khuda, Dr. Muzzafer Ahmed chair professor of BIBM and former professor of Dhaka University; Arastoo Khan, former secretary of Economic Relations Division and managing director and CEO of Impress Capital Limited; Syed Tariquzzaman, executive director of Bangladesh Bank; and Mohammed Monirul Moula, managing director and CEO of Islami Bank Bangladesh Limited; took part in the discussion.
The BIBM director general said the findings of the study along with opinions and observations made in the workshop will help the central bank to take necessary measures.
A good number of participants including senior bank executives, academics, media representatives and faculty members of BIBM took part in the event.
© 2021 - All Rights with The Financial Express