GROUP MEMEMBERS NAME:

1. Syed Ahmed Raza Qadri

2. Sami Saleem

DEPARTMENT: Benazir School of Business (BSB) BBA

MORNING SHIFT, 11TH BATCH

SUBJECT: ISLAMIC BANKING & FINANCE

SECTION: B, 7TH SEMESTER

SUBMITTED TO: Dr Munir

 ASSIGNMENT NO: 2

1. Structure of sharia board

According to the constitution every Islamic banking institution must

have a Shariah Advisory board comprised of minimum 3 shariah
Scholars . Shariah Board also requires Lawyers, finance professionals
& economists then Scholars analyze the decision on the basis of
Islamic rules & regulations . The tenure for the appointment of every
shariah member is 3 years after the clearance from SBP . Constitution
for Shariah Board Members also allows that a resident shariah board
member can also be appointed to look after the implementations &
amendments . A secretariat of Shariah Board is also formed to
oversee documentations , meetings & proposals . Shariah Compliance
department also works with Shariah Board it do not interfere in
business operations the basic role of this department is to research on
different sources of Islamic law to avoid from Riba . Shariah board is
an integral part of Islamic banking they issued their Fatwas on the
basis of deductive analogies .

2- Duties and responsibilities of S.B

Following are the duties & responsibilities of Shariah Board

 S.B ensures that Islamic banking system is based on the rules

& regulations provided by Islam & obeys the prohibition of
Riba
 Shariah Board also provides approval to Islamic Banking
institutions after analyzing the nature of financial products or
services
 Shariah Board reviews banking operations like promotion of
any product of service & agreements .
 It also reviews audit reports from both Internal & External
Shariah Audit
 S.B can also modify or make changes in their decisions