A Juridical-Legal Feasibility Study of Equity lease and its Financial Applications

Document Type : Research Paper

Authors

1 PhD student of International Oil and Gas Contract Management, Imam Sadegh University, Tehran, Iran

2 Associate Professor, Faculty of Islamic Studies and Theology, Imam Sadegh University, Tehran, Iran

Abstract

Stock leasing as one of the new topics in the Islamic capital market has a variety of financial applications including: financing of investment firms and holding through the issuance of equity based Ijarah Sukuk, organizing of justice shares and the exchange of cash flows of equity with fix cash flows. With descriptive-comparative method, the legal and juridical issues of equity leasing has been investigated. After examining the legal and juridical nature of the shares, we try to comply the requirement of the lease contract with the nature and characteristics of the shares. According to viewpoints of some jurists’ and the majority of Scholars in nature of the shares, the assignment some of the shares’ rights by the owner to the lessee is permissible for the companies with certain real leasable assets. The leas shares are not permissible if we accept the nature of the shares as being based on Virtual Property or debt.

Keywords

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