​Islamic Finance – Islamic Capital Market - Securitisation
The process of turning an asset into cash or its cash equivalent in the shape of papers that can be traded on the secondary market is known as securitization. A usually illiquid asset can be converted into a more liquid form with the aid of securitization. Securitization essentially packages financial pledges and converts them into a form that permits free transfer among numerous investors. With the structured funding of mortgage pools in the 1970s, securitization got its start. Banks were basically portfolio lenders before the advent of this kind of financial engineering, holding loans or receivables until they matured or were settled. Deposits and debt, which was a direct duty of the bank, were the main sources of funding for these loans. Inadvertently, this limited banks' ability to make loans. The concept of securitization emerged in order to appropriately package the specified pools of loans or receivables, such as mortgage loans. These bundles would then be dispersed to investors in the form of securities or loans that are secured or collateralized by the underlying receivables pool.

These assets are tradeable in the sense that holders or investors may offer to sell them on the secondary market to another interested party. Through this process, the leasing receivables are changed from an illiquid asset—a future cash flow—to instant cash funds for the business, or originator. Additionally, it will convert these packaged leasing receivables into securities that investors can purchase and subsequently liquidate at market value at any moment during the issuance period. The fixed yield paid from the cash flow and the rise in price of these papers when interest rates fall will both help investors who purchase these securities.

​Islamic Finance – Islamic Capital Market - ICMs and adherence to Shari'ah rules
The ability of any financial system to mobilise funds in a way that is affordable, quick, and accessible for issuers and investors depends heavily on the capital market. Matching people with capital with those who possess the essential managerial and entrepreneurial skills and talents is the goal of the market. Islam has long supported investment activities because it holds the view that both those with money and those without it gain from them. Without this exchange, assets would sit idle, skills and abilities would be wasted, new wealth and stock would stop being created, and unemployment, a burden on society, would surely follow. The main issue for Muslim investors is how closely the market's goods and services—such as stocks, bonds, mutual funds, forwards, futures, and swaps—adhere to Shari'ah guidelines. 

​Islamic Finance – Islamic Capital Market - bond and Sukuk market development
After 1975, there was an increase in the number of Islamic banking and financial institutions, which led to a greater demand for Shari'ah-compliant liquidity management tools. This led to the development of a distinctive Islamic Capital Market (ICM), which in turn led to the creation of a regulatory framework in some Muslim nations to support such projects. For instance, Jordan's government implemented Law No. 13 in 1978. This statute made it possible for the Jordan Islamic Bank to issue Muqaradah bonds, which are Islamic bonds. In order to create Waqf or endowment property, the Jordanian government then introduced the Muqaradah Bond Act in 1981. A unique law known as the Modaraba Companies and Modarabas (Flotation and Control) Ordinance 1980 was introduced in Pakistan in response to similar efforts. The Modaraba Companies and Modaraba Rules served as supplements to this (1981).

 Following the new acts, there was no actual issuance of Islamic bonds in any nation. The first issue of an Islamic bond and the beginning of an organised ICM were both made possible by the 1983 Malaysian government's GII (Government Investment Issue, also known as the Government Investment Certificate). Since the GII was founded on the idea of a Qard/Hassan (charitable loan or interest-free loan), it could not be traded on the secondary market. 

However, it satisfied the legal and liquidity management standards of Malaysia's Islamic Financial Institutions (IFIs) at the time. Murabahah or Tawarruq, a primitive type of a money market instrument based on the idea of a commodity, was introduced by the Saudis in the meantime. This endeavoured to offer investors a fixed income. In the region, the tripartite commodity Murabahah or Tawarruq contract has been a popular financing option.

​Islamic Finance – Shafi’i School of Law 
The Shafi'i school of law is the third significant institution still in operation. This school was named after Muhammad bin Idris al- Shafi'i's (d.820AD). A single scholar who was well-versed in the tenets of both the Maliki and Hanafi schools of thought produced the Shafi'i school of law as a result of his synthesis. He reiterated the legitimacy of the Prophet Muhammad's traditions as a source of law that coexists with and is equal to the Qur'an, according to the Maliki school of thought. 

He put out the idea that the Prophet Muhammad's Traditions clarified the interpretation of the Qur'an, which later gained universal acceptance. He adopted the independent sound judgment position from the Hanafi school of law and used it as a tool for analogical inference in his legal theory. Al  Shafi'i's contribution consists on his synthesis of Islamic legal doctrine. It should be mentioned that Al-legal Shafi'i's theory in Islamic jurisprudence works better in fixed-law domains. 

Since al-Shafi'i and his school of law were never concerned in areas of law that are flexible and worldly, as in the case of the Hanafi school of law, these include devotional affairs and the like. The primary commerce routes, which Shafi'i communities are mostly linked with, tend to follow a pattern that is similar to how Shafi'i school of law members are distributed. Many Shafi'is can be found in East Africa, Yemen, Malaysia, and Indonesia.

​Corporate Finance – Principle and Concept of Islamic Finance 
Ijarah is a form of leasing  contract where a lessor / owner leasese out an  asset to a lesse a an agreed lease rental for a predetermined lease period. The ownership of the lease asset shall always be with the lessor. 
Istisna is form of a purchase order contract In this contract the buyer requires a seller or contractor to deliver or construct the asset to be completed in the future according to the specification given in the sale and purchase contract. The term of payment can be as agreed by both parties in the contract. 

Mudharabah is a profit sharing contract. It is a contract made between two parties to enter into a business venture. The parties consists of the rabbal mal ( capital provider) who shall contribute capital to finance the venture and the mudharib ( entrepreneur) who will manage the venture. 

Murabahah is a cost plus sale contract. It is a contract where the cost and profit margin are made known in the sale and purchase of an asset. 

Musharakah is a profit and loss sharing contract.It is a partnership agreement where two or more parties financing a business venture where all of them contribute the capital either in the form of cash or kind.

Wakalah is an agency contract. It is when one party authorises another party to act on behalf of the former based on agreed terms and conditions as long as he still alive. 

Bai’ salam is an advanced purchase contract where the payment is made in cash at the point of contract while the delivery of the asset purchased will be deferred to a pre determined date. 
Bai’ ‘inah is a sale with an immediate repurchase contract where the contract involves the sale and buy back transaction of an asset by a seller. 

Corporate Finance - How Shariah Screening on listed Companies is conducted? 

​There are two tier approach of Shariah Screening on listed companies. 

The first part focuses on the business activity benchmark and the second part focuses on the financial ratio benchmarks. 

In terms of business activity benchmark, the  benchmark for  acceptable revenues or profits  generated by clearly prohibited activities, such as conventional bank (riba),conventional insurance, gambling, liquor and liquor related activities, pork and pork related activities, non halal food and beverages, interest income from conventional accounts and instruments, non compliant entertainment and tobacco and tobacco related activities is maximum 5%.

Maximum 20% is dedicated for share trading, stock broking business and rental received from non shariah compliant activities. 

Less than 33%  are related to financial ratio benchmark. These include cash over total assets and debt over total assets.

Cash over asset covers the amount of cash placed in conventional accounts and instruments with the exclusion of any cash on Islamic accounts and instruments. 

Debt over asset includes the interest bearing debts and not Islamic debt or financing or sukuk 

​Investment Management and Corporate Finance - What is the key component of the Capital Market? 

Investors
 The investors may include individual, insurance companies, pension funds, private corporation, public sectors and government agencies. 

Market Intermediaries 
Market intermediaries consists of universal brokers, unit trust companies, investment banks, fund manager, investment advisors, corporate finance advisors and financial planners. 

Market institutions 
Market institutions include clearing houses, issuing houses, central depository and exchanges.

Products 
Products include shares, bonds ( debt securities), hybrid securities, Shariah compliant products, derivatives, warrants, unit trust, structured products,

Issuers 

​What is capital market? 
Capital market consists of market and institutions that facilitates the issuance and secondary trading of long term financial instruments. 

Capital market consists of equity market, debt securities market, financial derivatives market and Islamic capital market. 

The purpose of the capital market is to provide funds to government or industries to meet their long term capital requirements. These may include financing for fixed investments such as housing development, building, plants or even bridges.