Society, Development and Commercial Law review

Society, Development and Commercial Law review

How to Design REPOs to be Shariah-compliant: A Study of REPOs as a Means of Corporate Financing from the Shariah Compliance Perspective

Document Type : Research Paper

Authors
Majid Ghamami 1
Amir Hossein Mokhtari 2
Diba Hamzehviazad 1
1 Private Law, Tehran University, Iran
2 Private Law, Tehran University, Tehran, Iran
Abstract
Basically, financing companies and business enterprise is the most important factor in production growth and improvement of the country's economic situation. Special conditions concerning the advantages, disadvantages, and functions of each financing tool should be provided for business enterprises to provide them with the possibility of financing from different channels and methods.
Considering the religious jurisprudence doubts that the framework of REPO contract may have, it is necessary to analyze the validity and the effects of a common REPO contract and design a contractual framework by optimizing the condition to be under religious jurisprudence and has functional efficiency as a financing tool.
In addition to introducing the REPO tool as one of the financing channels for companies in this article, it has been tried to consider the validity, effects, and religious jurisprudential doubts of this contractual framework and by introducing a final model present REPO contract as a financing tool.
Subjects

  • Receive Date 31 January 2023
  • Revise Date 21 February 2023
  • Accept Date 25 February 2023