Executive regulations governing the handling of requests for the issuance of Islamic financial bonds by credit institutions
According to the report of the financial news, citing the public relations of the central bank, it is stated in this circular, following the circulars No. 382373/96 dated 26/11/1396 and No. 356016/00 dated 04/12/1400, the subject of notification Rules governing the issuance of mortgage bonds and sukuk by banks and non-bank credit institutions approved by the meetings of the Money and Credit Council dated 11/17/1396 and 10/21/1400. “Executive Regulations Overseeing the Processing of Requests for the Issuance of Islamic Financial Bonds by Credit Institutions” approved by the Central Bank’s Credit Institutions Regulation and Supervision Commission meeting dated 07/27/1401 is notified. The most important items mentioned in the aforementioned executive rules, which were compiled with the aim of speeding up the processing of requests for the issuance of Islamic financial bonds by banks and non-banking credit institutions, are as follows:
Islamic financial securities subject to these rules include rental bonds, debt purchase bonds, mortgage bonds, and bonds that can be converted into shares.
– In the framework of these rules, the credit institution is obliged to apply for the issuance of Islamic financial bonds to the Central Bank.
– The place of consumption of the resources obtained from the published papers is the subject of these rules with the following priority:
– Settlement of the credit institution’s debt balance to the central bank
– Settlement of credit institution’s debt balance to other credit institutions
– Improving regulatory ratios and reforming the structure of assets and liabilities
– Granting facilities to different economic sectors
– The credit institution is not allowed to grant facilities to the underwriters and other persons to purchase Islamic financial bonds related to themselves and other credit institutions during the period of publication until the maturity of the bonds.
At the end of the circular, it is emphasized that the matter is expedited and in accordance with the provisions of Circular No. 149153/96 dated 16/5/16 2016/2016 should be notified to all relevant units of banks and non-bank credit institutions and its proper implementation should be monitored.
