By MohdMa’SumBillah, PhD
Abstract
For a sustainable growth of the sukuk industry, among the prime
concerns is to ensure a confidence among investors by protecting them against
any catastrophe and that is, why sukuk
is issued as a safeguard for investors and beneficiaries. The common phenomena
is that, in any sukuk
structure, be one sovereign, corporate or social, investors, and or
beneficiaries in the structure are protected by sukuk itself against any capital or beneficial risk or
catastrophe. In reality, a legitimate question may be raised whether a sukuk itself is adequate safeguard
for the investor or beneficiary against any defined risk? It is submitted that,
a sukuk itself does not hold
the capacity to offer adequate protection for the investor or beneficiary
against risk, because the issuer may still have the legitimate right to escape
the liability by a “limited liability clause” under the Company law or public
policy. It may thus, be suggested that, the only way to ensure an adequate
safeguard for the investor or the beneficiary in a sukuk structure is by a comprehensive insurance policy as an
additional step to a sukuk
certificate, may be termed as “sukuk
takaful”. Today, we seek to
share the emergence of sukuk takaful
besides analyzing its rationality and technical know-how?
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