Critical assessment of the Legal Recourse for the Case of Sukuk default for the Asset-Backed Sukuk and Asset-Based Sukuk structures

Authors

  • Mohammad Hassan Shakil INCEIF

DOI:

https://doi.org/10.13135/2421-2172/2066

Keywords:

Asset-Backed Sukuk, Asset-Based Sukuk, Legal Recourse, Sukuk default.

Abstract

This paper critically assesses and analyze the Islamic certificate of investments (Sukuk) and its two different structures; asset-backed and asset-based. The co-ownership of the recourse of the Sukuk is additionally known as an Underlying asset. The paper will discuss the legal alternatives of the stakeholders in the case of default of Sukuk. It is believed that Sukuk default by the institution cannot occur in its true sense, as they're not debt instruments issued by the issuer. Rather, they represent the possession of the Sukuk holders on the underlying assets; thus, the Sukuk are primarily based on assets. The recourse mechanism of Sukuk default ought to take into consideration to safeguard the interest of the investors.

Author Biography

Mohammad Hassan Shakil, INCEIF

Graduate Studies

References

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Published

2017-07-25

How to Cite

Shakil, M. H. (2017). Critical assessment of the Legal Recourse for the Case of Sukuk default for the Asset-Backed Sukuk and Asset-Based Sukuk structures. European Journal of Islamic Finance, (7). https://doi.org/10.13135/2421-2172/2066

Issue

No. 7 (2017): EJIF - European Journal of Islamic Finance, Special Issue: Islamic Banking and Finance, 2017

Section

Peer-reviewed Articles

License

Authors keep the copyrights for their work and give the journal the work's first publication copyright, which is at the same time licensed under a Creative Commons License – Attribution, which in turn allows other parties to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

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