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Participation principle of Islamic Economics is to share and act for common apprehension. Participation is a way of seeking profit through money from the money owner and work close of participator for earning profit. Riba Free Finance House as money owner bears loss alone as long as the participator does not exceed his role.
Participation principle of Islamic Economics is to share and act for common apprehension. Participation is a way of seeking profit through money from the money owner and work close of participator for earning profit. Riba Free Finance House as money owner bears loss alone as long as the participator does not exceed his role.
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Participation principle of Islamic Economics is to share and act for common apprehension. Participation is a way of seeking profit through money from the money owner and work close of participator for earning profit. Riba Free Finance House as money owner bears loss alone as long as the participator does not exceed his role.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PPT или читайте онлайн в Scribd
share and act for common apprehension which can be taken as the prime importance through participation in eliminating risk in the transactions been transacted through guiding rules of the Islamic Financial System for participation Participation Rule of Profit & Loss sharing is Participation. Loan leads to seeking price of money that increase in capital. Financing is made on principle of safety for capital and obtaining profit. Expenditure is deducted from profit and not from capital. Profit which can be distributed is net profit and not gross profit. Islamic Financial System allow participation in Joint Stock Companies or Limited Liability Companies from its accounts or can participate in a part of the capital of existing companies Financing working capital in projects at short term financing with participation which is not lent at interest. Legitimate participation is a way of seeking profit through money from the money owner and work close of participator at a common purpose among each participant for earning profit. Riba Free Financial House can may be the money owner and saver the participator or vice versa. The Riba Free Financial Houses are permitted to be a participator from employer to re-participate with the previous participated funds on a Profit & Loss basis. The Riba Free Financial Houses can be the second participator if it receives participation from the first participator. The Riba Free Bank may be the second participator if it receives participation from the first participator. The Riba Free Finance House as money owner bears loss alone as long as the participator does not exceed his role. If the Riba Free Finance House works as a participator it does not bear loss as is sufficient that the Riba Free Finance House’s effort and work are of no return. It is allowed that the profit between money owner and participator is pre agreed. But if it is determined sum of principal amount of money with the condition of no loss then participation becomes null and void. Riba Free Finance House can trade its funding precious stone and in foreign currencies on its conditions written down in the exchange contract. Investment in financial securities is only valid in shares and not in debentures. In Conventional System traditions do not approve the Finance Houses to perform investments by itself whereas Riba Free Finance House break the tradition in three stages. Firstly Rule known to us as Muslims that every person is taken by his words and other. Allah’s word revealed in Script and in traditions of His Prophet (May Peace be upon him) for considering that the Riba Free Finance Houses and their system are not anything but the blessings and in to be in transparency which cannot be break. Secondly With no doubt Finance Houses with their present forms and existing functions rose up in response to different environments and non Islamic philosophies in their present form and they serve these environments which are not necessarily convenient for serving Islamic communities in achieving the Rules approved by Almighty Allah Thirdly Islamic Financial System guide to perform direct investments by financing through participation with clear understanding the viability of the transaction as well as profit and loss being the result on the maturity of the transactions. The commitment to the result stop the practice of any other nature that deviate to Islamic financial system. In case pulling continues in the rest of its operations on the style of conventional banks and encloses itself in the field of lending from the funds received as deposits and cover its administrative expenses from these funds. This damage the investment and create a war between the two system. Financing by Participation means the sharing of bank through their capital in productive and viable project. Consequently the bank becomes a partner in the ownership of the productive project or transaction as well as the contributor partner in its management, its running and its supervision and also a partner in all what it yields from profit or loss according to proportions agreed upon. Besides, the bank can sell its share to a limit restore only the price agreed upon in the selling contract either it is less or more than its capital. Justice must be secured and there should not be exploitation as in the case of loan at interest where the lender obtains all its capital completely with an increase in its capital equal to the mount of interest either the project which borrowed makes a loss or profit. Participation should exist on joint liability between the financier and the financing in case of loss and in case of profit. Islamic Bank is a partner to the financing requires in loss as it is a partner in profit. From here comes the glorious reference
and great wisdom, thus this participation
in the two cases (loss and profit) oblige the two partners (every of them) to make the project prosper, and to do every effort to supervise it to partake in its success and therefore the efforts of the two partners should be faithfully directed to its development