Dr. Ashraf Al-Sharkawi, the EFSA’s chairman, has asserted that the regulations on the Capital Market Law no. 95/1992 regarding organizing the financing sukuks (Islamic bonds) would be finished within the coming 3 months.
He explained that the EFSA has finished the regulation’s first draft after holding discussions with 12 entities working with the stock exchange. The second draft will be made next week so as to present it next month to the EFSA chairmanship and get its approval, he added.
“The major comments made by those entities were about defining certain types of those Sukuks. Actually, we did not mention them in the first draft so as not to limit Sukuk to certain types. In our opinion, not mentioning certain items will always open doors to add any further new types to the list; we would have then various unlimited financial instruments.” he said.
He explained that the sukuks are financing instruments mentioned in the Capital Law since 1992 which have attained the approval last May. However, this law was supposed to come into effect 2 months after its issuance in 1992.
Sharkawi referred that the EFSA’s main role is to protect the dealers and investors in any financial instruments. Therefore, any dealers or investors shall mention all details (kind, function, potential risks) about these instruments whether they are sukuks or others.