Course Overview:
The course has been designed to enable the students to understand and explain the philosophy, principles and operations of Islamic finance including Islamic banking, Islamic financial instruments and Takaful and how they are different from the conventional banking and financial system.
Learning Outcomes:
On completion of this course students will be able to:
Course Outline and scheme of study
Week |
Contents to be Covered |
1 |
Introduction: Finance as a Business; Meanings of finance and financial system; Objectives of Business and Finance in Islam; The concept of intermediation and its basis in the conventional and Islamic framework |
2 |
Philosophy of Islamic finance; Riba, Qimar / Maysir and Gharar and how their prohibition affects various businesses and contracts |
3 |
Introduction to various categories of contracts, law of contracts, Qard and Dayn in Islamic finance, Implications of Trade, Lease and Shirkah based contracts |
4 |
Takaful: Need, Bases and Models |
5 |
Shirkah based modes – Musharaka and Mudaraba;
|
6 |
Workshop on deposit management; Ijarah – lease based financing |
7 |
Introduction of Diminishing Musharaka; Principles and application for Housing finance; Workshop on how pricing is made in housing finance |
8 |
Trade based modes – Credit sales – Murabaha, Musawamah |
9 |
Mid term test and Murabaha / Musawama (Contd…) |
10 |
Salam; principles and application |
11 |
Istisna‘a –principles and application |
12 |
Accessory Modes- Jualah, Kfalah, Hawalah, Wakalah |
13 |
Differentiating the functioning of conventional banking and Islamic banking and marketing Islamic finance products |
14 |
Takaful as an alternative to Insurance – Need, basis, Models and how it is different from insurance
|
15 |
Islamic Finance in Nutshell- Revision |
16 |
End of the term Exam |