Dispute management in Islamic financial institutions: a case study of near sukuk defaults

Purpose – The purpose of this paper is to examine the vital importance of dispute management in cases of both near and outright sukuk defaults. With the case studies, this study examines the vital importance of dispute management in cases of both near and outright sukuk defaults. With a number of c...

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Main Author:	Oseni, Umar Aimhanosi
Format:	Article
Language:	English English English
Published:	Emerald Group Publishing 2014
Subjects:	HG Finance HG178 Liquidity HG4001 Financial management. Business finance. Corporation finance. K Law (General) KBP Islamic Law
Online Access:	http://irep.iium.edu.my/38861/ http://irep.iium.edu.my/38861/ http://irep.iium.edu.my/38861/ http://irep.iium.edu.my/38861/1/1._Dspute_management_in_IFIs_-_A_case_study_of_near_sukuk_defaults..pdf http://irep.iium.edu.my/38861/4/38861_dispute_management_scopus.pdf http://irep.iium.edu.my/38861/6/38861_Dispute%20management%20in%20Islamic_SCOPUS.pdf

id	iium-38861
recordtype	eprints
spelling	iium-388612017-09-19T04:10:52Z http://irep.iium.edu.my/38861/ Dispute management in Islamic financial institutions: a case study of near sukuk defaults Oseni, Umar Aimhanosi HG Finance HG178 Liquidity HG4001 Financial management. Business finance. Corporation finance. K Law (General) KBP Islamic Law Purpose – The purpose of this paper is to examine the vital importance of dispute management in cases of both near and outright sukuk defaults. With the case studies, this study examines the vital importance of dispute management in cases of both near and outright sukuk defaults. With a number of case studies, the study shows how debt restructuring can play a significant role as a dispute management procedure recognized in Islamic law. Design/methodology/approach – The study uses the case study methodology to determine the impact of debt restructuring in instances of near and outright sukuk default and the process taken to reach a win-win settlement among the parties. Due to some sensitive financial information, the study has fully anonymized the sukuk companies examined. Findings – The paper finds that for a more sustainable and stable and resilient Islamic finance industry, the role of law through dispute management cannot be ruled out, as appropriate dispute management mechanism facilitates the underlying contracts. Research limitations/implications – This study limits its focus to near and outright sukuk defaults and the need to come up with Shari’ah-based mechanisms for dispute management when things seem to have fallen apart. Practical implications – The study proposes an integrated regulatory-cum-remedial framework which may serve as sustainable mechanism for handling circumstances involving near and outright sukuk defaults with a view to protecting the rights of all the stakeholders. Originality/value – Though few studies have been conducted on sukuk defaults in cross-border transactions, there has not been much focus on dispute management of cases involving such defaults. This study seeks to fill such an important gap, which has the potential of streamlining dispute management practices in the sukuk industry. Emerald Group Publishing 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/38861/1/1._Dspute_management_in_IFIs_-_A_case_study_of_near_sukuk_defaults..pdf application/pdf en http://irep.iium.edu.my/38861/4/38861_dispute_management_scopus.pdf application/pdf en http://irep.iium.edu.my/38861/6/38861_Dispute%20management%20in%20Islamic_SCOPUS.pdf Oseni, Umar Aimhanosi (2014) Dispute management in Islamic financial institutions: a case study of near sukuk defaults. Journal of International Trade Law and Policy, 13 (3). pp. 198-214. ISSN 1477-0024 http://www.emeraldinsight.com/toc/jitlp/13/3 http://dx.doi.org/10.1108/JITLP-12-2013-0034
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG Finance HG178 Liquidity HG4001 Financial management. Business finance. Corporation finance. K Law (General) KBP Islamic Law
spellingShingle	HG Finance HG178 Liquidity HG4001 Financial management. Business finance. Corporation finance. K Law (General) KBP Islamic Law Oseni, Umar Aimhanosi Dispute management in Islamic financial institutions: a case study of near sukuk defaults
description	Purpose – The purpose of this paper is to examine the vital importance of dispute management in cases of both near and outright sukuk defaults. With the case studies, this study examines the vital importance of dispute management in cases of both near and outright sukuk defaults. With a number of case studies, the study shows how debt restructuring can play a significant role as a dispute management procedure recognized in Islamic law. Design/methodology/approach – The study uses the case study methodology to determine the impact of debt restructuring in instances of near and outright sukuk default and the process taken to reach a win-win settlement among the parties. Due to some sensitive financial information, the study has fully anonymized the sukuk companies examined. Findings – The paper finds that for a more sustainable and stable and resilient Islamic finance industry, the role of law through dispute management cannot be ruled out, as appropriate dispute management mechanism facilitates the underlying contracts. Research limitations/implications – This study limits its focus to near and outright sukuk defaults and the need to come up with Shari’ah-based mechanisms for dispute management when things seem to have fallen apart. Practical implications – The study proposes an integrated regulatory-cum-remedial framework which may serve as sustainable mechanism for handling circumstances involving near and outright sukuk defaults with a view to protecting the rights of all the stakeholders. Originality/value – Though few studies have been conducted on sukuk defaults in cross-border transactions, there has not been much focus on dispute management of cases involving such defaults. This study seeks to fill such an important gap, which has the potential of streamlining dispute management practices in the sukuk industry.
format	Article
author	Oseni, Umar Aimhanosi
author_facet	Oseni, Umar Aimhanosi
author_sort	Oseni, Umar Aimhanosi
title	Dispute management in Islamic financial institutions: a case study of near sukuk defaults
title_short	Dispute management in Islamic financial institutions: a case study of near sukuk defaults
title_full	Dispute management in Islamic financial institutions: a case study of near sukuk defaults
title_fullStr	Dispute management in Islamic financial institutions: a case study of near sukuk defaults
title_full_unstemmed	Dispute management in Islamic financial institutions: a case study of near sukuk defaults
title_sort	dispute management in islamic financial institutions: a case study of near sukuk defaults
publisher	Emerald Group Publishing
publishDate	2014
url	http://irep.iium.edu.my/38861/ http://irep.iium.edu.my/38861/ http://irep.iium.edu.my/38861/ http://irep.iium.edu.my/38861/1/1._Dspute_management_in_IFIs_-_A_case_study_of_near_sukuk_defaults..pdf http://irep.iium.edu.my/38861/4/38861_dispute_management_scopus.pdf http://irep.iium.edu.my/38861/6/38861_Dispute%20management%20in%20Islamic_SCOPUS.pdf
first_indexed	2023-09-18T20:55:50Z
last_indexed	2023-09-18T20:55:50Z
_version_	1777410297430016000

Dispute management in Islamic financial institutions: a case study of near sukuk defaults

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