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UMMER FAROOQUE. M.

K ROLL NO: CMS-2011- 67

AIMS: Achieving economic and social justice in all financial transactions. FEATURES: . Contracts are fair and equitable to all parties . Rewards positively correlated with risk . 100% interest free

Musharaka: Simple partnership Mudaraba: One party capital and other effort/ know how
Baiu Salam: Deferred Delivery Sales Murabaha: Sales at a high margin Ijara: Leasing Istisna: Financing by other for a good and later payment Istijara: Recurring Sale Qard Hasan: Loan

Internal Demand: 200 million Muslims, saving

INR

40 billion all needy people wish interest free finance

External Supply: Investment opportunities limited in

Muslim populated countries- seeking emerging


economy

Ties with GCC, EU, SAARC, G20

PAST STUDY
.Modes operandi of sub systems

PRESENT STUDY
Feasibility and viability of these system in Indian socio- economic

. Depended on stereotype conventional Islamic financial

context. . Widen the horizon of these

Instruments.

instruments using 4 school of


thoughts of jurisprudence. . Prove which system is better to India.

Primary : Analyze scope and feasibility of Islamic finance and give guidelines for best practice.

Detect hurdles before implementing & suggest remedial measures. Secondary: Detect way of reducing poverty & unemployment Find out scope of separate stock exchange Find out govt. & govt. institutions role Verifying existing system of other countries and measure suitability to India.

There is significant relation between socio economic indicators and need for Islamic finance

Implementing Islamic finance will boost FDI in India Implementation of Islamic Banking and Insurance would mobilize more savings There is difference among communities pertaining to establishment of separate stock exchanges in India.

There are legal hurdles for implementing Islamic financial practices in India. Islamic venture capital is better than conventional loans and conventional venture capital for investor as well as investee.

Primary Data: Method-Stratified random Sampling & Judgment Sampling


Tools: structured Interview, structured questionnaires and schedules. Secondary Data:

Authentic Arabic Books of jurisprudence Report of Govt. semi Govt. institutions, financial institutions and NGOs, etc. Websites Data from those countries who fruitfully completed Islamic finance and are

resemblance to India.

Basic tools of descriptive statistics Basic tests such as Chi square test, ANOVA Probit and Logit modeling techniques, Binary

regression

using software packages like MS Excel, SPSS

and E- Views