Proposed Model
The main objective in issuing of this type of manfa’ah sukuk is to finance the originator (IRIB) and the underlying asset for the issuance is the seconds of advertisement program. The originator securitizes the seconds of advertisement and finance the whole project by issuing manfa’ah sukuk. In this process, investors and final users of securities pay their funds and receive manfa’ah sukuk from the originator. If the buyer of manfa’ah sukuk is the final user, he/she keeps the securities until the exercising date and receives the right to use seconds of advertisement. However, the condition to use such securities is that the security holder informs his own intention to use the right of seconds of advertisement X days prior to exercising date. In case the sukukholders are not the final users, they could buy or sell such securities through the secondary market or sell the manfa’ah sukuk directly to the final users and receive money. Here, the final user enters the exercising process with IRIB.
To make these securities more attractive, originator provides the sukukholders with a put option on which investors present their own securities to the originator and receive their investment funds. Originator (IRIB) may sell to the final users the right to use seconds of advertisement which have obtained via exercising put options by manfa’ah sukuk owners.
It is noticeable that such bodies including accountant, guarantor and market-maker have also planned to enhance the safety and confidence grade of these securities.
The price of benefits and services rendered via manfa’ah sukuk, with respect to the remaining time until exercising date, is usually lower than the price of such benefits and services; so, the one who has invested in manfa’ah sukuk would benefit from buying and selling of such securities and the more he gets closer to exercising date, the more he gains profit. The profit for manfa’ah sukuk would be equal to the difference between nominal and current prices; so, manfa’ah sukuk could be classified as a financial instrument with expected and diversified profit.
Shariah Board Resolution
1- Seconds of advertisement could have the nature of both manfa’ah and right and also could be an instance for copyright. In both cases, manfa’ah or right, they would be a kind of asset and simply traded by the wise.
2- In consonance with the opinion of those jurisprudents who know the transactions of manfa’ah and right as permissible, and buy or sell of seconds of advertisement manfa’ah sukuk and the copyright of these seconds could be executed in form of manfa’ah and right transactions.
3- Such transactions, conforming to those jurisprudents that do not introduce manfa’ah and right transactions permissible and just believe in transactions of standing properties, could only be correct in form of sulh (reconciliation) on manfa’ah and right.
4- If the seconds of advertisement are considered as manfa’ah and transferred to investors in form of manfa’ah transaction or manfa’ah reconciliation , the ownership of the benefits of which are completely transferred to investors and there would be no need to sign a new contract with originator (IRIB) on exercising date of securities.
5- If the seconds of advertisement are considered as copyright and transferred to investors in form of manfa’ah transaction or manfa’ah reconciliation, there would be no kind of ownership and investors would only have the right to trade with originator (IRIB) on exercising date of securities. So, a new contract must be signed with originator on exercising date.
6- Originator (IRIB) transfers manfa’ah or copyright of the seconds of advertisement to the applicants (investors) in the exchange for a certain price and a certain period of time in form of bai (sale) or sulh transactions. Conforming to such contracts, sukukholders could exercise their own securities on maturity date or before that date transfer the securities to others in form of manfa’ah sale or right sale contracts or manfa’ah sulh or right sulh contracts.
7- In accordance with the previous approval of shariah board on manfa’ah sukuk, if the transfer of securities is in form of Ijarah (lease) contract, the secondary market of which would fall in trouble because of some restrictions in ijarah contracts. In ijarah contracts, according to majority of jurisprudents, the leased asset could not be re-leased by a higher price unless something is added to the value of the asset. So, transfer of such securities in the secondary market higher than the nominal price without any more value added to securities, would have jurisprudential problem.
8- If the basic contract for these securities is manfa’ah sale contract, the price of securities will be equal to the price of transferring the manfa’ah ownership, including seconds of advertisement, in form of bai (sale) or sulh (reconciliation). If the basic contract for these securities is the right sale or right sulh contract, the price of securities will be equal to the price of transferring entitlement and priority right which belongs to sukukholders in their new transaction with the originator. Thus, selling of securities by discount could be executed in form of a discount in the amount of manfa’ah or a discount in copyright by the originator (IRIB) to the sukukholders.
9- Stipulation of put and call options of advertisement securities by a certain price in bai (sale), sulh (reconciliation) and ijarah (lease) contracts shall be permissible.
10- Buying and selling of manfa’ah sukuk by discount and premium shall be correct.
Session Number Session Date Description
126 Jun 08 2016
127 Jun 22 2016


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