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PFN PIN 6.5.5 Guidance

Investments that take the form of mudaraba or musharaka contracts must be reported in accordance with their nature. A contract that takes the form of a collective Investment, where the Insurer is one of several investors providing capital to a mudarib who then provides the capital to the entrepreneur, should be reported as a collective Investment (where it does not fall to be reported as a Profit Sharing Investment Account). Where however, a contract of mudaraba or musharaka is entered into by an Insurer as an Investment directly with an entrepreneur, or through a mudarib with the Insurer as sole rab ul mal, the Investment should be reported as a contract of mudaraba or musharaka as appropriate.


Derived from DFSA RM11/2004 (Made 16th September 2004). [VER1/09-04]