Identification and Ranking of Guarantee Alternatives in the Process of Issuing Islamic Securities in the Iranian Capital Market

Abstract

Today, the role of capital markets in financing projects and businesses has more than ever been recognized by economic policy-makers. In spite of designing various instruments of financing, the capital markets’ share in financing is far from policy- makers’ expectations. So to let capital markets attain their desirable place in financing economic enterprises, investigating and removing the hindrances in the process of issuing sukuk is essential. The present study intends to examine alternatives to guarantee in the process of issuing Islamic securities due to the former’s delaying effect on fulfilling the task and its impact on the ultimate costs of financing, then to provide solutions from experts’ viewpoints. Based on the existing literature, warranty replacements were identified. In the next step, questionnaires based on the obtained factors were distributed among capital market experts. The criteria were then ranked based on TOPSIS method. The results indicate that determining the top companies for issuing securities without guarantors, supervising the issuer’s revenues by an intermediary agent, issuing securities together with permission for their sale, sinking fund, Sukuk guarantee fund, and bond ratings, act as substitute guarantees respectively in the process of issuing sukuk for the capital market.

Keywords

• warranty
• iran’s capital market
• sukuk
• topsis method. jel classification: g32
• o16