The Chancellor Guide to the Legal and Shari'a Aspects of Islamic Finance

Chapter 8: Islamic Funds and Securities

The legal frameworks for setting up Islamic funds and trading in securities are the focus of this chapter.  The chapter includes a discussion of the creation of Islamic indices and the legal and Shari’a issues involved in trading in securities and indices. There is a helpful comparison of the laws governing Islamic funds and securities in the Islamic as well as non-Islamic jurisdictions.  A comparison of different Shari’a screening methodologies of stocks – Dow-Jones versus FTSE versus S&P versus AAOIFI (and other methodologies) is instructive.