Q: 3 Part A Please contemplate the following scenarios and answer accordingly. a. In Murabaha financing with customer, IB signs an agency with customer to make him IBs purchase agent to select vendor, order and receive delivery of Murabaha assets as specified in order form. But later, IB comes to know that customer and vendor are related parties where customer holds controlling shares in Vendors business. Requirement: As an Islamic Banker how would you comprehend shariah risk in above situation and what are the safeguards/controls you suggest to IB to ensure the Murabaha transaction is genuine and compliant. (Marks: 5) b. A and B are two partners who have pooled their capital to start a profitable business and have decided following matters in their partnership deed: i. A promised B that he will purchase the share of partner B based on Murabaha after the expiry of 2 years from the commencement of partnership. ii. A agreed with B that profit of first six month would be given to A and profit of next six month would be given to B and same arrangement would hold for second year as well.

Requirement: As an Islamic Banker, please identify any breach of shariah guidelines in above scenarios.

Question No: 3 Part A Please contemplate the following scenarios and answer accordingly. a. In Murabaha financing with customer, IB signs an agency with customer to make him IBs purchase agent to select vendor, order and receive delivery of Murabaha assets as specified in order form. But later, IB comes to know that customer and vendor are related parties where customer holds controlling shares in Vendors business. Requirement: As an Islamic Banker how would you comprehend shariah risk in above situation and what are the safeguards/controls you suggest to IB to ensure the Murabaha transaction is genuine and compliant. (Marks: 5) b. A and B are two partners who have pooled their capital to start a profitable business and have decided following matters in their partnership deed: i. A promised B that he will purchase the share of partner B based on Murabaha after the expiry of 2 years from the commencement of partnership. ii. A agreed with B that profit of first six month would be given to A and profit of next six month would be given to B and same arrangement would hold for second year as well.

Requirement: As an Islamic Banker, please identify any breach of shariah guidelines in above scenarios.