Securities Regulation for Islamic Finance

False (B)

Islamic Capital Market (ICM)

International Organization of Securities Commissions

<p>Emphasis on speculation and gambling (A)</p> Signup and view all the answers

<p>ICM = A market operating in line with Islamic law IOSCO = International organization for securities commissions Shariah = Islamic law Riba = Interest-based financial transactions</p> Signup and view all the answers

<p>IMF (A)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Regulating the capital markets in Malaysia.</p> Signup and view all the answers

<p>BNM</p> Signup and view all the answers

<p>Securities Commission Act 1993 (SCA) = Provides the Securities Commission with powers and authority Capital Markets and Services Act 2007 (CMSA) = Governs various aspects of the capital market, including securities trading and investment Securities Industry (Central Depositories) Act 1991 (SICDA) = Focuses on the regulation of central depositories for securities</p> Signup and view all the answers

<p>GHARAR (A), SPECULATION (B), RIBA (C), MAYSIR (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Conventional capital markets have no restrictions on the use of proceeds, while Islamic capital markets require that all proceeds be used in a Shariah compliant manner.</p> Signup and view all the answers

<p>sukuk</p> Signup and view all the answers

<p>Intermediaries = Provide opportunity for diversification of risks Facilities the availability of funds = Contributes to economic growth Makes available various financial services = Plays a complementary role to Islamic Banking and Takaful sectors</p> Signup and view all the answers

<p>Increasing demand for conventional investing (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The IOSCO Principles aim to promote fairness, efficiency, and transparency in the securities markets globally.</p> Signup and view all the answers

<p>Islamic, conventional</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Issuing licenses for financial institutions (D)</p> Signup and view all the answers

<p>CMSA</p> Signup and view all the answers

<p>To ensure appropriate levels of oversight and accountability for auditors of PIEs</p> Signup and view all the answers

<p>Principles 10-12 = Enforcement of Securities Regulation Principles 13-15 = Cooperation in Regulation Principles 16-18 = Issuers Principles 19-23 = Auditors, Credit Rating Agencies, and Information Service Providers Principles 24-28 = Collective Investment Schemes and Hedge Funds Principles 29-32 = Market Intermediaries Principles 33-37 = Secondary Markets</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>A stable macroeconomic environment (A), Sound legal and accounting framework (C), Effective procedures for resolving securities market issues (D)</p> Signup and view all the answers

<p>Securities Commission (SC)</p> Signup and view all the answers

<p>Bursa Malaysia and FIMM</p> Signup and view all the answers

<p>Principles 1-8 = Principles relating to the regulator Principle 9 = Principles relating to self-regulation Principles 10-12 = Principles relating to enforcement of securities regulation Principles 13-15 = Principles for cooperation in regulation Principles 16-18 = Principles for issuers Principles 19-23 = Principles for auditors, credit rating agencies, and other information service providers Principles 24-28 = Principles for collective investment schemes and hedge funds Principles 29-32 = Principles for market intermediaries Principles 33-37 = Principles for the secondary markets</p> Signup and view all the answers

<p>IOSCO (D)</p> Signup and view all the answers

<p>It is outdated but currently under review for substantial amendment</p> Signup and view all the answers

A market for capital transactions following Shariah principles.

Islamic laws guiding financial and investment activities.

International Organization of Securities Commissions that sets global standards.

Activities involving buying and selling financial instruments.

Investments that comply with Islamic legal standards.

IMF/World Bank initiative assessing countries' financial sectors for stability and compliance.

A framework for evaluating the implementation of IOSCO principles in financial regulation.

Regulatory authority overseeing capital markets in Malaysia, established by law.

Central bank of Malaysia, overseeing various financial institutions.

Legal framework establishing powers and responsibilities of the SC in Malaysia.

Legislation that governs capital markets and services in Malaysia.

Law regulating securities central depositories in Malaysia.

A stable economic environment necessary for effective regulatory supervision.

The established laws and accounting standards supporting regulation.

Laws governing the process of insolvency and liquidation of companies.

Oversight by organizations within the industry to maintain standards.

The Securities Commission (SC) in Malaysia has clear authority over capital markets.

The SC operates independently from industry and government influence.

A Malaysian exchange with direct oversight responsibilities.

The Federation of Investment Managers Malaysia oversees market participants.

The SC has broad powers to inspect and investigate breaches of securities laws.

The SC can cooperate and share information with domestic and international regulators.

Detailed requirements exist for initial offerings and ongoing disclosures for securities.

Auditors of Public Interest Entities (PIEs) in Malaysia are subject to regulatory oversight.

Publicly offered CIS must meet authorization and reporting obligations.

Prohibited interest in Islamic finance.

Prohibited uncertainty in contracts.

Prohibited gambling in Islamic finance.

Islamic financial certificates, similar to bonds.

Debt securities without shariah compliance.

How investments are received by different investors.

Must involve shariah-compliant business operations.

Intermediaries facilitating Islamic finance activities.

ICM contributes to overall economic expansion.