Legal And Regulatory Framework of Islamic Financial Services in Bangladesh with Special Reference to the Islamic Capital Market: A Way Forward

Abstract

Sustainable economic growth is the prime concern of today’s globalized
world. Money markets around the world are functioning as key players to
realize that goal and often looking for new avenues to increase the capital that
may embolden overall growth of economy of a country. This paper in adopting
doctrinal method has tried to explore the legal barriers responsible for nonpracticing the Islamic capital market in Bangladesh. The study has mainly
focused on certain laws of Bangladeshi legal system which function as key
legislative directives in governing Islamic financial services with special
reference to the capital market through legal infrastructure in Bangladesh. It
has examined the relevant laws and regulations of the existing legal system
prevalent in the capital market of Bangladesh influencing the promotion and
proliferation of capital through strict compliances by the companies and
protection of the investors in terms of realizing profit without any hindrance.
The study has further investigated the modus operandi of Islamic banks as
found in the Capital Market of Bangladesh and scrutinized the major
challenges and potentials thereto. Having looked into the legal and regulatory
practices prevalent in the Islamic capital market of Bangladesh, the present
work has maintained that capital market of Bangladesh suffers from the lack
of integrated shariah compliant legislations which would govern and regulate
the Islamic capital market in a more proper fashion. Given that the paper has
tried to propose a set of recommendations which would help the Islamic
capital market grow accordingly and hence, trigger the speedy amelioration of
national economy globally.

+ View Full Abstract