Abstract
Sukūk, being an important lego-economic aspect, is minutely discussed by Sharī„ah (Islamic law).Such discussion, however, is made through the extension of general principles, envisaged by Islamic law for the trading in currencies; owing to the fact that Sukūk is entirely a contemporary concept. The tool, used herein for such extension, is Ijihād. The purpose of this work is, therefore, to explain the conceptual basis of Sukūk (as negotiable instrument in Islamic Law) from Sharī„ah‟s perspective and to investigate, at the same time, the legal issues involved therein.. Being a relatively newer paradigm, Sukūk does not hold, indeed, a very strong theoretical background in Islamic law- as mentioned earlier. A descriptive approach is, therefore, used in this research paper to provide a strong theoretical background about the origin of Sukūk , its design, issuing procedures and to sort out, too, non Sharī„ah compliant concerns. Sukūk, beyond any doubt, have gained an immense growth rate and wide acceptability in the contemporary financial market. They are proving very helpful instrument, at the equal level, in order to manage liquidity problems in Islamic finance. They are, though, being criticized by some scholars on account of Sharī„ah‟s concerns. Well thought out regulations, in complete accord with Islamic commercial law, needs to be developed and rigorously executed by international Islamic financial regulators. The present work is going to serve, of course, as a strong theoretical base; enhancing the quality of Sukūk issuance, clarifying/resolving any legal issues involved therein and etc.