Certified in Islamic Financial Services

Course Information This course starts on July 1, 2023.

This is foundation level course is about products, processes and mechanisms that are in use in the Islamic financial services industry. It provides an easy-to-understand discussion of basic Shariah norms governing Islamic finance and how financial products and processes can be designed and developed as solutions to problems and as responses to profit opportunities and need for Shariah compliance. It also provides a framework to evaluate existing and conventional financial products and services from a Shariah point of view, to isolate major elements and features that violate the Shariah and identify the Islamic alternative.

The course covers the following major areas in five modules:

1. Overview of the Islamic Financial System: This module presents a blueprint of the Islamic financial system with all its components. It discusses the norms of ethics and efficiency and how these shape the contours of a financial system. The norms of Islamic finance, such as, prohibition of riba and gharar and the need for mutual cooperation are discussed.

2. Islamic Commercial Banking: This module covers products and services that broadly fall under commercial banking. It discusses how conventional commercial banking is practiced and undertakes an assessment of the same from the standpoint of Shariah compliance. The Islamic alternative models of commercial banking, as these have evolved over time are then presented. On the liability side of the balance sheet of an Islamic bank it discusses various deposit-related products that help mobilize funds from the savings-surplus units. The spotlight then shifts to the asset side of an Islamic bank and covers financing products – equity-based, debt-based and fee-based.

3. Islamic Insurance: This module explains how conventional insurance is practiced and undertakes an assessment of the same from the standpoint of Shariah compliance. The Islamic alternative models of insurance are then presented. The Islamic insurance products based on tabarru, mudaraba and wakala are discussed in a comprehensive manner in.

4. Islamic Investment Banking and Financial Engineering: This module initiates the discussion with how conventional investment banking is practiced and undertakes an assessment of the same from the standpoint of Shariah compliance. The Islamic alternative investment banking products – both in the pre-market stage and after-market stage are then presented briefly. It also focuses on venture financing, creation of securities and other services, such as, stock broking. It then discusses risk management products based on derivatives and financial engineering.

5. Fund Management and Project Finance: This module discusses how funds are managed conventionally through various mutual funds, unit trusts and real estate investment companies. It undertakes an assessment of the same from the standpoint of Shariah compliance. The Islamic alternative fund management products are then presented. It elaborates on various issues relating to the fund management products. The module also deals with project finance. It begins with a discussion of project finance as is undertaken in the conventional way and goes on to examine the issue of Shariah compliance. Some project finance structures that are deemed Islamic are then discussed.

Islamic financial products and services are presented in the form of flow charts and blue prints that facilitate conceptual clarity and greatly simplify the learning process. For each product, the text provides a blue print that helps differentiate between conventional and Islamic products. The products relate to commercial banking, insurance, investment banking & financial engineering, fund management and project finance. You may use the designatory letters CeIFS upon successful completion of this program.
The course makes frequent references to real-life practices. The course contents include illustrations of actual products as they are offered to the Muslim investor or depositor community using illustrations that have been carefully culled from public sources.