Fundamentals of Islamic Money and Capital Markets -- Copyright -- Contents -- Preface -- Audience -- Overview of the Contents -- Acknowledgments -- 1: An Introduction to Conventional and Islamic Financial Systems -- Learning Outcomes -- Introduction -- The Roles and Functions of Financial Markets -- Structures of Financial Markets -- Based on the Instrument -- Based on the Issuance of Securities -- Methods Used in Secondary Markets -- Based on the Maturity -- Classification of Financial Markets -- The Money Market -- The Capital Market -- Types of Financial Intermediaries -- Depository Institutions -- Contractual Institutions -- Investments and Finance Institutions -- A Brief Overview of the Islamic Financial System -- Evolution of Islamic Finance -- Chapter Summary -- Chapter Questions -- Notes -- References -- 2: Development of Islamic Capital and Money Markets in Malaysia -- Learning Outcomes -- Introduction -- Development of Islamic Financial Institutions in Malaysia -- 1960 to 1990: Establishment of Islamic Financial Institutions -- 1990 to 2000: Conventional Banks Allowed to Offer Islamic Financial Products and Services -- 2000 to 2010: Islamic Subsidiaries and the International Integration of the Islamic Banking System -- Islamic Capital Markets in Malaysia -- Sukuk -- Islamic Collective Investments -- Islamic Stock Broking -- Malaysia International Islamic Financial Centre (MIFC) -- Chapter Summary -- Chapter Questions -- Notes -- References -- 3: Regulators and Transactions Platform for Capital and Money Markets -- Learning Outcomes -- Introduction -- Bank Negara Malaysia (BNM) -- Role and Functions -- BNM Administered Legislation -- Role of BNM on ICM Development -- The Securities Commission (SC) -- Role of SC on ICM Development -- Bursa Malaysia (BM) -- Role of BM on ICM Development -- Shariah-Compliant Stocks and ETF.

Islamic Equity Indices -- Islamic REITs and Sukuk Market -- Chapter Summary -- Chapter Questions -- Notes -- References -- Websites -- 4: Islamic Money Market -- Learning Outcomes -- Introduction -- Money Market Participants -- Functions of the Islamic Money Market -- Differences between Islamic and Conventional Money Markets -- Components of the Malaysian Islamic Money Market -- Islamic Interbank Market -- Mudarabah Interbank Investment -- Profit Calculation for Mudarabah Interbank Investment -- Example: Mudarabah Interbank Investment (MII) -- Commodity Murabahah -- Example: Commodity Murabahah Interbank Investment -- Wakalah Investment -- Trading of Islamic Money Market Instruments -- Government Investment Issue (GII) -- Example: Calculation of GII price -- Malaysian Islamic Treasury Bills (MITB) -- Example: Calculation of Proceeds on MITB -- Bank Negara Monetary Notes (BNMN) -- Sukuk Bank Negara Malaysia Ijarah (SBNMI) -- Islamic Negotiable Instruments (INI) -- Negotiable Islamic Debt Certificate (NIDC) -- Example: Calculation of Price of NIDC of Less Than One Year -- Example: Calculation of Price NIDC with Maturity of More Than One Year -- Islamic Negotiable Instruments of Deposit (INID) -- Example: Calculation of Proceeds for an INID -- Islamic Accepted Bill (IAB) -- Import and Local Purchases -- Export/Local Trade -- Example: Price Calculation of IAB under Bai al-Dayn -- Sell and Buy Back Agreement (SBBA) -- Example: Sell and Buy Back Agreement -- Cagamas Sukuk -- Sanadat Mudarabah Cagamas (SMC) -- Example: Sanadat Mudarabah Cagamas (SMC) Calculation -- Sanadat Cagamas -- Islamic Corporate Sukuk -- Chapter Summary -- Chapter Questions -- Notes -- References -- 5: An Overview of Sukuk -- Learning Outcomes -- Introduction -- Comparing Sukuk, Bonds, and Shares -- Sukuk Types -- Sukuk Structures -- Sukuk al-Ijarah -- Sukuk al-Musharakah.

Sukuk al-Mudarabah -- Sukuk al-Salam -- Sukuk al-Istisna -- Sukuk al-Murabahah -- Sukuk al-Istithmar -- Sukuk al-Wakala -- Chapter Summary -- Chapter Questions -- Notes -- References -- 6: Shariah-Compliant Equity -- Learning Outcomes -- Introduction -- The Structure of Equity Markets -- Shariah-Compliant Equity Securities -- Differences between Shariah and Non-Shariah-Compliant Equity Markets -- Shariah-Compliant Stocks Screening -- Malaysia Securities Commission -- S&P Shariah Indices -- Pakistan Meezan Islamic Fund -- Global GCC Islamic Fund Screening -- Jakarta Islamic Index -- Chapter Summary -- Chapter Questions -- Note -- References -- 7: Islamic Mutual Funds -- Learning Outcomes -- Introduction -- Closed and Open-Ended Funds -- Conventional Mutual Funds -- Active and Passive Management -- Advantages of Mutual Funds -- Disadvantages of Mutual Funds -- Fees and Expenses -- Islamic Mutual Funds -- Basic Concept of Islamic Mutual Funds -- Shariah Stock Screening -- Purification of Income -- Types of Islamic Mutual Funds -- The Role of the Shariah Advisory Board in Islamic Mutual Funds -- Calculating NAV in the Islamic Mutual Funds -- Organisation of Islamic Mutual Funds -- The Process of Investing in Islamic Mutual Funds -- Islamic Ethical Investment and Ethical Investment -- Chapter Questions -- Notes -- References -- 8: Islamic Real Estate Investment Trusts (I-REITs) -- Learning Outcomes -- Introduction -- Islamic Real Estate Investment Trusts (I-REITs) -- Shariah-Permissible Investments for I-REITs -- I-REITs Structure -- Case Study: Al-'Aqar KPJ REIT -- Case Study: Al-Hadharah Bousted REIT -- Difference between Conventional and Islamic REITs -- Chapter Summary -- Chapter Questions -- Notes -- References -- 9: Islamic Exchange-Traded Funds -- Learning Outcomes -- Introduction -- Open- and Closed-End Funds, and Unit Trust Funds.

Open-End Funds -- Closed-End Funds -- Unit Trust -- Exchange-Traded Funds (ETFs) -- Islamic Exchange Trade Funds (I-ETFs) -- Security Borrowing and Lending in Malaysia -- Islamic ETFs in Other Countries -- Challenges in Promoting I-ETFs -- Chapter Summary -- Chapter Questions -- Notes -- References -- 10: Islamic Derivatives Market -- Learning Outcomes -- Introduction -- Derivative Securities in the Conventional Market -- Risk Profile -- Main Players in the Derivative Markets -- Hedging with a Forward Contract -- Hedging with Future Contracts -- Hedging with Swap Contracts -- Derivative Securities in the Islamic Perspective -- Islamic Forward and Future Contract -- Islamic Option Contract -- Islamic Cross-Currency Swap -- Islamic Profit Rate Swap -- Islamic Structured Product -- Chapter Summary -- Chapter Questions -- Notes -- References -- Bibliography -- About the Authors -- Index.