GRM 2010 GRM 2011

Abstract Details

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Title of Paper:
Bankruptcy, Shariah and Capital Markets Best Practices: A Comparative Analysis Focusing on Kuwait
Paper Proposal Text :
This paper focuses on the general factors that contribute to efficient modern capital markets. The paper draws a list of the factors that shape a successful debt capital market. From this end, these issues comprehend general obligation bonds, secured bonds, asset based securities and asset backed securities. On the one hand, these factors, which comprehend bankruptcy and companies formation, are best illustrated in the US capital market. On the other hand, these factors may facilitate the Islamic debt capital market and sukuk. The US market may represent the apex of the international capital markets, Germany may represent the apex of the civil law countries and their capital markets. The paper maps the key factors as they are represented in US securities law and practice, Germany, and Kuwait. The successful market maps to what happens in default and company failure. The paper then looks at several cases of sukuk with Kuwaiti obligors which defaulted during the financial crisis.Lawyers and bankers involved in several of the key cases have indicated that Shariah was a problem in the restructuring process. The paper will look at these cases in light of market best practices, regulation and judicial outcome.

The paper addresses the topic “Legal and regulatory environment of the GCC region and its impact on the development of the IBF sector”.