Shariah compliant stock exchange: steps required for transformation

Abstract

Islamization of economy is an important part of Islamic countries’ policy nowadays. After emergence of Islamic financial institutions, the demand and need for Islamization of whole economy has increased. Current methodology for Islamization is to bring required changes in existing economic and financial system.

This article discusses the required necessary steps for Islamization of a very important institution of an economic system – stock exchange.

For Islamization of stock exchange six directly related steps are important to begin with. Some other direcly and indirectly related institutions may also be required to adopt these changes being part of capital market.