ISDEV Research Lecture..

12 Nov, tepat jam 10 pagi saya sempat menghadiri satu siri lecture anjuran isdev, iaitu pusat kajian pengurusan islam yang menganjurkan syarahan bertajuk "equity in islamic capital market: concept and operational mechanism". Ia disampaikan oleh Prof Dr Abdul Ghafar Ismail drp Sc. of Economics, UKM.
The discussion is focussing on two important topics in islamic capital market i.e concept and operations. All in all, the concept of Islamic capital market which based on shariah principle are against any kind of receiving or paying interests. Interests are prohibited and should not be allowed to give rise to more money. What money can do is as a potential capital only rather than be as a capital itself. Meaning that money becomes capital only when it is invested in business. Accordingly, money advanced to a business a s a loan is regarded as a debt of the business and not capital and, as such it is not entitled to any returned (i.e interest). The business (also individual) can use this money for the purchase of good and services. The owner of capital will get an enumeration based on the profits. The condemnation of interests made it not recognized as a correct and justifiable payment. Therefore, to avoid the paying and receiving interests, capital should be designed where the shareholder shares the possibility of either profit or loss, and is satisfied with a non-predetermined remunieration.So the utmost important to comprehend is, in islam, money is not entitled to get a fix remuneration, but, on the other hand, money should be considered as capital, i.e, the owner of capital will get an enumeration based on the profits from mudarabah and musyarakah contracts.

Actually this talk was very good indeed, but i could not stay longer in this hall after receiving call to handle the jamuan raya at school, so after an hour, i have to get off but what is so lucky, i got his paper in my hand to study further, thanx to Isdev committee!