we are committed to the development and promotion of Shariah tolerant Finance in the country. We derive strength from our deep-rooted belief in Shariah values and the commitment of our people to Shariah in spirit. We visualize ourselves as a leading investment solutions provider with the mission of popularizing authentic Shariah based solutions in the finance field in India. We are very strict to comply with the principles of Islamic Shariah to create an Investor friendly financial environment for the benefit of not only Muslim community but for the entire mankind.

What is Islamic banking?

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called

‘Riba’ in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values).

Islamic banks distribute the profit from re-investing the money of the investors in business activities and the like. And so, investors are responsible to share chance of loss also along with profit. But, the chance of loss is not shared with investors in the traditional banking system.

What is islamic Finance?

Islamic Finance is a trillion dollar plus industry today and is emerging as one of the fastest growing areas of international finance. Currently Islamic banking and finance practices have a presence in over 75 countries of the world; these include many secular countries of Europe, North America and South East Asia. India have sensed the momentum building up in favour of Islamic Finance, has started looking for strategic vantage positions to exploit the niche opportunity. Many Indian private sector players have come up with Shariah tolerant products abroad. A few of them have launched products and services in India as well. The Government of India is also seriously contemplating various options for allowing Islamic Finance in the country.

What is different in Shariah Finance?

FUNDAMENTALS OF SHARIAH FINANCE:

Prohibitions:

• Riba
• Gharar
• Maysir
• Prohibited sectors
• Conditionality

Promotions:

• Encouragement of profit and loss sharing.
• Public need or necessity.

PROHIBITIONS EXPLAINED:

• Riba: “The Kind of loan where a specified repayment period and an amount in excess of capital is predetermined.” In Islam it is religiously, socially and economically unjust practices. Riba is of two types:-
• Riba al Naseeyah: – Riba al Naseeyah is defined as excess, resulting from predetermined interest which a lender receives over and above the principal amount it has lent out.
• Riba al-Fadl: – Riba al fadl is defined as excess compensation without any consideration (e.g., monies passing between the parties) resulting from an exchange or sale of goods.
• Gharar: It literally means to deceive, cheat, delude, lure, entice. The sale of probable items whose existence or characteristics are not certain due to the risky nature that makes it similar to gambling. The gharar that invalidates a sale is that which pertains to the existence of the object of sale, which may or may not exist. As for gharar pertaining to the attributes of the object of sale it corrupts the sale.
• Maysir: It is gambling, bets and wager where whatever one profits, is at the cost of others.
• Prohibited sectors:Pork, Pornography, Financial services (conventional), Arms and ammunition, Cinema, Tobacco, Gambling, Alcoholic Liquor, etc.