News Category: Public
Register Date: Jan 13 2019
Publish Date: Jan 13 2019

New Proposals for Development of Islamic Treasury Notes

Iran Securities and Exchange Organization is studying new proposals for development of Islamic Treasury Notes

Islamic Treasury Notes (ITN) are among the most common government's financing tools via the capital market. By such instrument, the government will give its private sector's creditors Islamic Treasury Notes which will mature at specific time in the future.
Like many conventional treasury notes, Iranian Shariah compliant model for such instruments do not pay any profit coupons to the holders and they will receive nominal value at the maturity time. However, in order to strengthen their attractiveness as an investment instrument, a new proposal has been assigned to the Shariah Board which emphasizes on adding some profit coupons.
The board after some discussions concluded that it is Shariah permissible to add such coupon profits only if the coupon nominal value get determined at the coupon maturity date.

KeyWords: Islamic Treasury Notes, Securities and Exchange Organization, Shariah Board


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