Dubai Financial Market (DFM) organized a public hearing session to discuss the draft of its “Standard for Issuing, Acquiring, and Trading Sukuk”, the first comprehensive standard of its kind. The session was attended by 45 experts and Islamic financial services practitioners, who interacted heavily with the draft and submitted many suggestions that will enable the exchange to formulate the most comprehensive standard.
DFM has extended the consultation period until April 6th, 2013 to allow various stakeholders further opportunity to submit their suggestions and remarks.
Key suggestions and recommendations during the Hearing Session:
- Considering the possibilities of issuing a separate standard for Sukuk governance, or alternatively, adding governance rules to the new standard to enhance the quality of Sukuk issues.
- The emphasis on ascertaining the sound application of the Sukuk standard instead of stopping at Shari'ah theorizing.
- Stressing the independence of the special purpose company, SPC, representing the interests of Sukuk holders, to avoid conflict of interest with Sukuk issuer.
- Adding greater precision and more details to some of the provisions of the standard, like those related to offering prizes in connection with investment Sukuk.
- The need to disclose the risks to which Sukuk holders may be exposed, in the Sukuk prospectus.