Free Nifty Future Tips: Singapore: The leading Domestic banks have the capacity to launch a South Asian Shariah Fund to capitalize the region’s untapped market for Islamic finance which need multi-billion dollars of financing annually.

“The whole South Asian market is really vacant for the Islamic finance.

In these markets, Indian stocks would be the top fifty (for investments),” said Mr. Ariff Sultan, regional director for Asia Pacific at the US-based global Shariah compliance product screening group, Ideal-ratings.

Indian banks are in a position to lead the Shariah fund for the region, given their global network which includes expediting Islamic banking and financing in one way or another, observed Sultan after addressing the ?Islamic Investment & Banking Asia/Middle East Congress 2016? being held in Singapore 5-6 April.

Sultan noted MR. Narendra Modi Indian Prime Minister as wide range of business and investment discussions during his recent visit to Saudi Arabia.

The kingdom has declared USD2 trillion Public Investment Fund, which adds to similarly huge funds available in Qatar, Kuwait, Bahrain and Dubai among other universal investors that are seeking business opportunities in India, he pointed out.

Sultan said Ideal-ratings has been approached by a number of Islamic Banking-linked investors to screen opportunities for placing their funds in the Domestic market.

But there are regulatory restrictions.

He hoped that Prime Minister Modi would consider amending these restrictions and approve Islamic funds into India, which along with China, leads as growth engines for Asian worth.

“The Islamic funds are going into China via Hong Kong but are not able to reach India,” said Sultan of the estimated USD2 trillion investment funds under the Islamic Banking network now seeking cross-border investment opportunities both in non-muslim and muslim markets.

Islamic banking system is just another model of interest free but fee-based funding that are going universal, said Sultan, a Singaporean of Indian origin and a 25-year veteran of the financial inst.

“With pro-growth, pro-poor, and financial stability characteristics, an internationalization of Islamic finance may vent true economic growth potential in jurisdictions where it is either established or finding its way,” said Ijlal Alvi, head executive of the International Islamic Financial Market.

Riding on the global success of sukuk, issuance of which has reached USD767 billion closing of last year, Islamic Banks are working on new products including Shariah compliant Forex forward, Islamic cross currency swap, market risk participation agreement in addressing market needs and risk management tools, he said.