In an Islamic capital market, market transactions are carried out in ways that do not conflict with the inner voice of Muslims and the religion of Islam. The Islamic capital market is free from activities not permitted by Islam such as interest (riba), excessive uncertainty (Gharar), gambling (Maysir), short selling and financing of any activity considered harmful to society. The Islamic capital market is a segment of the overall capital market in Malaysia and plays a vital role in producing financial development for Malaysia. The Islamic capital market runs parallel to the conventional capital market. The Shariah Advisory Council was established to review, evaluate and identify the listed shares procedure for listed and to-be-listed organizations on Bursa Malaysia for Shariah compliance status. To date there are several capital markets products accessible to Muslims who are only looking to invest and transact in the Islamic capital market. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay An example of an Islamic capital market product is Sukuk Finance or also known as Islamic Bonds. The Accounting and Auditing Organization defines financial sukuk as certificates of equal value representing undivided shares in the ownership of tangible assets, usufructs (the legal right to use and enjoy profits and to enjoy the profits of something belonging to another) and services or (in the ownership of ) the assets of particular projects or special investment activities. Sukuk concerns a financial provider that holds ownership of real assets and earns a return from those assets. With Sukuk, certificates are issued that are linked to an underlying tangible asset and which also transfer the risk and rewards of ownership. The underlying asset is managed on behalf of Sukuk holders. Sukuk financing may be appropriate for leasing portfolio securitization. There are two types of Sukuk: Assed-based Sukuk (Sukuk Al-Ijarah) and Asset-backed Sukuk. An asset-based sukuk raises financing where the principal is backed by the capital value of the asset but repayments to sukuk holders are not financed directly from these assets. An asset-backed sukuk raises funds where the principal is secured by the principal value of the asset, however profits and repayments to sukuk holders are financed directly from these assets. This is the same arrangement as securitization where the assets are transferred to a special purpose vehicle and the returns and repayments are funded directly from the income from the assets. In simpler terms, Asset Based Sukuk finances the acquisition of assets or raising capital through leasing. The first step is for the holder of a sukuk to subscribe by paying an issue price to a special purpose vehicle (SPV). In exchange, the SPV issues certificates indicating the percentage they own in the SPV. The SPV uses the collected funds and purchases the asset from the debtor also known as the seller and in return the SPV receives the ownership. Then, the special purpose vehicle, as lessor, leases the asset to the debtor under an Ijarah agreement. The debtor or lessee pays rents to the SPV, as the SPV is the owner and lessor of the asset. The SPV then makes periodic dispersals (rent and capital) among sukuk holders. An asset-backed Sukuk is the securitization of a leasing portfolio. In an asset-backed sukuk, sukuk holders subscribe by paying an issue price to an SPV company. Consequently, the SPV