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Responsibilities of the Shariah Committee
The Shariah Committee functions independently of the Manager and has responsibility only to the Fund’s Uni tholders. The Shariah Committee meets every quarterly to advise the Manager on the conformance of the investments, operations and marketing aspects of the Fund with the Shariah principles. The Shariah Committee members were appointed on the launch date of the Fund.
The Shariah Committee is responsible for:-
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(a) |
Setting investment guidelines in compliance with Shariah principles;
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(b) |
Monitoring the Fund’s activity to ensure strict adherence to the above guidelines;
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(c) |
Reporting to the Unitholders on Shariah compliance in the interim and annual report; and
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(d) |
Issuing religious opinion on matters pertaining to un-Islamic activities. |
The
Purification or Cleansing Process
The purification or cleansing process involves:
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(a) |
Cleansing the Fund by deducting amounts representing ‘riba’ or interest received by the companies in the Fund’s portfolio;
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(b) |
Removal
of profits or income derived from incidental un-Islamic activities;
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(c) |
Computation of the purification amounts on a weekly basis to be deducted from the Fund’s Asset Value; and
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(d) |
Donating the purification amounts to specific charitable organizations, approved by the Board of Directors.
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(e) |
Issuing religious opinion on matters pertaining to un-Islamic activities.
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Conflict
of Interest
The Directors, Investment Committee Members and Shariah Committee should avoid any conflict of interest arising, or if any conflict arises, should ensure that the scheme is not disadvantaged by the transaction concerned. Any transaction carried out by or on behalf of the scheme should be executed on terms, which are available for the scheme. In the event that any of the Directors, Investment Committee members and Shariah Committee is directly or indirectly involved, he would abstain from being involved with any decision making process of the said transaction. If in doubt, the Trustee is empowered to act in accordance to the Deed or the Act or Guidelines and securities laws applicable at the point in time.
©2002,
RHB Capital Berhad
Disclaimer
and Indemnity
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