Legal Regulation Of Exchanging Sukuk (Islamic Bonds)

Abstract

Islamic Sukuk are relatively new securities with a special nature. One of their most important characteristics is that they represent a common share of ownership of certain assets. It does not represent a debt. It is also characterized as an Islamic product, so that it is a Shariah compliant bond. These two characteristics have had a significant impact on the success and proliferation of Sukuk and have become a global product, and their promulgation is no longer limited to Islamic countries and Islamic financial institutions. Negotiability is a necessary feature of the Sukuk as securities. The holder of the bond has a right that is materially embodied in the bond and has the same right as any other owner to legally exchange it. This allows him to recover the funds he invested in those bonds without having to wait for their maturity. The legal regulation of the right to exchange or negotiate Sukuk, like other aspects of these bonds, is based on its own nature. The exchange includes the transfer of the right to such assets from the holder of the sukuk to a new holder. The provisions of Shariah must be respected in the disposition of the act in which they are traded. While Islamic Sukuk have received research and analysis on Islamic studies, they have not yet received research and analysis as far as their legal aspect is concerned. They still lack in many countries legal provisions that they regulate despite their wide adoption. This study aims to identify the legal problems raised by the right to exchange Islamic Sukuk and to determine the legal provisions applicable to this exchange.