Understanding the concept of riba and the measurement of riba-based components of Shariah-compliant securities in Malaysia
List of Authors
  • Mohd Arif Mat Hassan , Mohd Feroz Shah De Costa

Keyword
  • Financial communication, riba, Islamic marketing, Islamic banking, Islamic debts, Interest-free, Islamic financial literacy

Abstract
  • Shariah-compliant securities are becoming more significant to Malaysia whereby the number of listed companies on Bursa Malaysia stock exchange is increasing. The focal purpose of this paper is to depict the understanding of riba an-nasiya and measurement of riba-based components within a business's statements of financial position in relevance to Shariah-compliant securities in Malaysia. A conceptual analysis is the main methodology of this paper. It is concerning the concept of riba and the riba-based components of Shariah-compliant securities in Malaysia. The mindfulness of riba and the measurement of riba ratios considered within the Shariah-compliant securities is anticipated to supply to the body of knowledge of Islamic marketing and to the practitioners of Islamic finance, marketing professionals, policy makers, and potential investors in terms of conceptual level.

Reference
  • 1. Adam, N. L. & Bakar, N.A. (2014). Shariah screening process in Malaysia. Procedia – Social and Behavioral Sciences 121: 113–123. 2. Ahmad, A.U.F. & Hassan, M.K. (2007). Riba and Islamic banking. Journal of Islamic Economics, Banking and Finance 3 (1): 1-33. 3. Alam, M.M., Chowdhury, S.A., Shawon M.S. & Mohammad, M.E. (2017). The Islamic shariah principles for investment in stock market. Qualitative Research in Financial Markets 9(2): 132-146. 4. Alhabsyi, S.Y. (2008). Stock Screening Process. Islamic Finance Bulletin 20: 24-30. 5. Almansour, A., Ongena, S. (2018). Bank loan announcements and religious investors: empirical evidence from Saudi Arabia. Journal of Empirical Finance 47: 78-89. 6. Bursa Malaysia. (2020a). Shariah-compliant Stocks (i-Stocks). Retrieved from https://www.bursamalaysia.com/trade/our_products_services/islamic_market/bursa_malaysia_i/shariah_compliant_stocks#:~:text=(i%2DStocks),Shariah%2Dcompliant%20Stocks%20 (i%2DStocks),of%20quality %20Shariah%2Dcompliant%20stocks. 7. Bursa Malaysia. (2020b). Best Practices for Shariah Investing. Retrieved from https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/assets/5bb55b8a5f36ca0c38d98c08/Best_Practices_for_Shariah_Investing.pdf. 8. Donia, M. & Marzban, S. (2008). Patching holes in the net. Islamic Banking & Finance 6(4): 19. 9. Eisenberg, David. (2012). Islamic Finance: Law and Practice. London, UK: Oxford University Press. 10. Investopedia. (2020). Securities. Retrieved from https://www.investopedia.com/terms/ s/security.asp. 11. Khatkhatay, M.H. & Nisar, S. (2007). Shariah compliant equity investments: An assessment of current screening norms. Islamic Economic Studies 15(1): 47–76. 12. Laldin, M.A. &Hafas, F. (2013). The foundations of Islamic finance and the maqāṣid al-sharī’ah requirements. Journal of Islamic Finance 2(1): 31–37. 13. Obaidullah, M. (2009). Some issues in shari’ah compliance and regulation of Islamic funds, J.KAU. Islamic Econ 22(1): 191-193. 14. Ramazan, Y., Mansur, M. & Obiyathulla, I.B. (2018). Determinants of capital structure: evidence from shari'ah compliant and non-compliant firms. Pacific-Basin Finance Journal 51. DOI: 10.1016/j.pacfin.2018.06.008. 15. Saâdaoui, F. (2018). Testing for multifractality of Islamic stock markets. Physica A: Statistical Mechanics and its Applications 496: 263-273. 16. Securities Commission Malaysia. (2020). List of Shariah-compliant Securities by the Shariah Advisory Council Securities Commission Malaysia. Retrieved from https://www.sc.com.my/api/documentms/download.ashx?id=dd80630a-6dd5-45ae-bedb-75f0586fe3ec.