By Abdul Gani, TwoCircles.net,
Guwahati: Talking on the ‘interest free banking’ Dr Sharique Nisar, Director (Research & Operations), Taqwa Advisory and Sharia Investment Solutions Pvt Ltd (Tasis), said that Islamic Finance is a trillion dollar plus industry today and is emerging as one of the fastest growing areas of international finance.
Taking part in the seminar organized by University of Science & Technology Meghalaya (USTM) at 9th Mile in the outskirts of Guwahati he said currently Islamic banking and finance practices have a presence in over 75 countries of the world; these include many secular countries of Europe, North America and South East Asia. Government of India too is seriously contemplating various options for allowing Islamic Finance in the country. This is borne out from the steps that the Government has taken in this connection in the recent past.
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Dr Sharique Nisar delivering his speech during the seminar at USTM in Guwahati.
On the Indian scenario, Dr Nisar said that way back in 2005, the Government of India had set up the Anand Sinha Committee under the Reserve Bank of India for studying Islamic Financial Products and in 2008 the Raghuram Ramrajan Committee recommended Islamic banking for financial inclusion of Muslim community of India. In 2008 again, Government of India called for bid in connection with reconstruction of National Minority Development Finance Corporation (NMDFC) on Shariah lines. In 2009, SEBI permitted India’s first Shariah tolerant Mutual Fund, advised by Tasis. In the same year, SEBI also permits India’s first Shariah tolerant Venture Capital Fund.
“All the above-mentioned actions indicate the cautious but systematic approach Indian policy makers are adopting in allowing Islamic financial products and services in the country. India Inc having sensed the momentum building up in favour of Islamic Finance, has started looking for strategic vantage positions to exploit the niche opportunity. Many private sector players have come up with Shariah tolerant products abroad. A few of them have launched products and services in India as well,” said Nisar who is also a visiting faculty of Islamic Finance at AMU, Aligarh; BSAR University, Chennai; and BSE Institute.
He has been offered a one year fellowship by the Harvard University USA to do research on ‘Indian financial regulations’ commencing from September 1, 2013.
Dr Nisar informed that Tasis was founded by a group of finance and investment professionals who realised the need for a credible organisation for providing guidance and support to individuals and corporates having an interest in the nascent but highly potential interest free (Islamic) finance industry in India. He said, “As the name suggests, it is an organisation providing Shariah advisory and investment solutions in India, while operating within the Indian legal framework.”
In 2009, GIC (Re), a Government of India owned company, appointed Tasis for Shariah Advisory and Government of Kerala appointed a consulting firm to seek advice on starting an Islamic NBFC.
Dr PK Abdul Azis, VC, USTM; Habibur Rahman Laskar, former Executive Director of LICI; Dr Sakia Khan, Asstt Professor, Economics, Gauhati University; AK Thakur, Project Officer, Planning Commission, GoI; and KG Deb Krori, President, Senior Engineers’ Forum (India) were among the participants at the seminar.
