Dubai: Dubai Financial Market (DFM) said on Wednesday it has released a draft of its Standard on Investment Funds and has invited Islamic finance professionals to provide counsel and feedback on the standard.
“The draft of this standard has raised many key points including; how the Sharia rule for trading the fund units depends on the purpose of its establishment, emphasising the necessity of issuing a fund prospectus that provides investors the essential information to make their decision whether to invest in the fund or not,” Dr Hussain Hamed Hassan, Chairman of DFM’s Fatwa and Sharia Supervisory Board said in a statement.
This standard will provide investors and regulators an important reference on the key guidelines, applications and disclosures for investment funds in order to evaluate the fund’s efficiency for the protection of investors’ rights.
Essa Kazim, Chairman of DFM said: “Investment funds are among the most prominent investment vehicles that many Islamic financial institutions seek to establish in order to facilitate investment in stocks, real estate, currencies and others. Considering the necessity to regulate these funds in line with Sharia rules and principles, DFM’s Fatwa and Sharia Supervisory Board has initiated the process to issue the most comprehensive Sharia standard for investment funds.”
The consultation period will be concluded on May 11, 2018, as the final step prior to its official launch, the bourse said in an emailed statement.
