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New Delhi:
“In order to create a comprehensive and robust financial system,
Islamic financial institutions need to be innovative and focus on
developing Venture Capital (VC), private equity and alternative
investments. This will create an industry with a niche that is
capable of competing with conventional banks, with the added value
of shared wealth for the society. It is hoped that Islamic VCs
will play a major role in developing Muslim countries”.
The above observation was made by Mr. Khaled M. Al-Aboodi, CEO &
General Manager of Islamic Corporation for the Development of the
Private Sector (ICD), Jeddah while speaking as a guest speaker at
the inaugural session of the New Delhi based Institute of
Objective Studies, (IOS), two-day International Conference on
"Prospects for Islamic Venture Capital Funds in India" which began
here on Saturday at the Parliament House Annexe. The International
conference is the part of the Silver Jubilee celebrations of IOS.
Continuing Mr. Al-Aboodi said the beauty of Islamic Finance is
that it is a constitutionally developing and evolving industry,
with new and innovative financial instruments and hybrid products
being developed to fit particular business models, industries and
countries, creating an edge over conventional products.
He said this is the best divine alternative economic system
available before the world and in which ever country this system
is in vogue the recent economic meltdown has not affected its
economy. While in comparison to this interest-based conventional
banking institutions have become victims of bankruptcy and the
world is in the grip of worst economic crisis, he pointed out.
Mr. K. Rahman Khan, Deputy Chairman, Rajya Sabha who chaired the
inaugural session in his presidential speech, while emphasizing
the advantages of Islamic banking, said that it has originated
from the Holy Qur’an which is not religious book of Muslims alone
but for the whole humanity as it is a book of guidance for one and
all.
Mr. Khan said that in every economic transaction four things
should be kept in mind viz. (i) justice, (ii) equilibrium, (iii)
truth and (iv) fairness. Any transactions which complies with
these four principles as enunciated by the Holy Qur’an then it
will ensure well being, peace and harmony among the people which
is the hallmark of a good society. The Holy Qur’an has stated that
none should be exploited and Islamic banking takes care of this.
However, the conventional banking system fails to grow and assist
the poor who are thus exploited at the cost of the rich people in
society, he added.
Mr. D. R. Mehta, former Chairman, SEBI and Dy. Chairman, RBI,
Jaipur, while delivering inaugural address said that if India has
to progress then Islamic Venture Capital Funds, (IVCFs), has to be
launched in the country as Malaysia and other countries are
successfully experimenting with it. In India the prospects for
IVCFs are very bright and it should be developed for different
sections of society, he added.
Dr. Mohammad Manzoor Alam, Chairman IOS, while speaking a few
words on the occasion said that responsibility and prudence, to be
precise, are essential features of Islamic finance including
Islamic Venture Capital. He said IVCF is an increasingly visible
component of the capital fund scene globally. It has extraordinary
potential to be of use in India’s expanding economy over the
years, he added.
Prof. Z.M. Khan, Secretary General IOS, threw light on the
Introduction of IOS and its Silver Jubilee year. Dr. Ausaf Ahmad,
Finance Secretary IOS, delivered the welcome address while Mr.
Ravi Kishore, Secretary General, Indo-Arab Economic Cooperation
Forum, New Delhi proposed vote of thanks.
Meanwhile, two panel discussions were held on the first day after
the inaugural session. The theme of the first panel discussion was
"Global Trends in Venture Capital and Private Equity, (VCPE),". It
was chaired by Dr. Rudy Yaksick, Partner, Concord Capital Partners
LLC, USA; The panelists were Prof. R. J. Masilamani, Professor,
Institute of Management Studies, Ghaziabad; Dr. Ashok Haldia,
Director, PTC India Ltd., New Delhi; Dr. Ausaf Ahmad, former Head,
Special Assignment, IDB, Jeddah, & Finance Secretary, IOS; Prof.
Ali Shervani, Director, Miftah Advisor, New Delhi; and Mr. Ravi
Kishore, Secretary General, Indo-Arab Economic Cooperation Forum,
New Delhi.
The second panel discussion was on the theme "Venture Capital
Funds in Islamic Perspective (I)". It was chaired by Dr. Ausaf
Ahmad, Former Head, Special Assignment, IDB, Jeddah, & Finance
Secretary, IOS. The panelists were Dr. Javed A. Khan, Associate
Professor, Centre for West Asian Studies, Jamia Millia Islamia,
New Delhi; Mr. M. H. Khatkhatay, Founder, TASIS, Mumbai; and Mr.
Arshad Ajmal, CEO, Sahulat Microfinance Society, Patna.
(pervezbari@eth.net)
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