There is, for a short time, by virtue of Article 1(11) of the IRI Securities Market Act 1384, a financial derivatives market in which future contracts and option contracts are offered, that has begun to establish on a limited level. The threshold revenue in such contracts may take the form of goods or securities. From the viewpoints of the Iranian legal system and Islamic jurisprudence, such contracts have been proven valid irrespective of their subject (the underlying asset); however, the validity of those derivative contracts whose underlying asset is the index has continued to be doubtful. While rejecting the legal opinions raised so far concerning the non-validity of financial derivatives made on the index, this article seeks to explain their nullity from a different approach. The outputs of this research shall, inter alia, be the nullity of index contracts for the impossibility of ownership, their valuelessness, and the lack of the very idea of “bargain” in such contracts. The article also contains a way to validate the contracts concluded upon the index.
Hoseinzadeh, J. (2015). Legal Status of Index Derivative Instruments. Journal of Islamic Law Research, 15(2), 207-231. doi: 10.30497/law.2015.1673
MLA
Hoseinzadeh, J. . "Legal Status of Index Derivative Instruments", Journal of Islamic Law Research, 15, 2, 2015, 207-231. doi: 10.30497/law.2015.1673
HARVARD
Hoseinzadeh, J. (2015). 'Legal Status of Index Derivative Instruments', Journal of Islamic Law Research, 15(2), pp. 207-231. doi: 10.30497/law.2015.1673
CHICAGO
J. Hoseinzadeh, "Legal Status of Index Derivative Instruments," Journal of Islamic Law Research, 15 2 (2015): 207-231, doi: 10.30497/law.2015.1673
VANCOUVER
Hoseinzadeh, J. Legal Status of Index Derivative Instruments. Journal of Islamic Law Research, 2015; 15(2): 207-231. doi: 10.30497/law.2015.1673
)
