 In this module, we would look at another example of application of Musharaka as a mode of finance in the context of Islamic banking and finance. We started with the application of Musharaka in Islamic asset or Islamic fund management industry followed by the application of Musharaka in Islamic retail banking. And today, we are going to look into one example which comes from Islamic capital market specialty on the bond side. Islamic bonds sometimes recall is Sukuk as Islamic bond. So, Sukuk Musharaka is a capital market product that allows governments and corporates to raise funds from investors of various type. So, these investors could be individuals, they could be corporates and of course, they could be banks and other financial institutions as well. So, Sukuk is a capital market product, capital market to refresh your mind. Capital market broadly can be divided into fund management, investment, fund management and the bond market. In case of Islamic capital market, it comprises Islamic asset management industry and the Sukuk market. So, Sukuk Musharaka is an example of application of Musharaka in the context of Islamic capital market. Sukuk in general has numerous structures and one of the most popular ones is based on Musharaka. We would study later the most popular structure of Sukuk which is Ijara. However, Musharaka is also one of the popular structures used in Islamic capital market. So, Sukuk Musharaka may have very complicated structures, but we shall explain rather a simple structure of Sukuk Musharaka to exemplify use of Musharaka as an Islamic mode of financing in the context of Islamic capital market or in general Islamic banking and finance. Now, Obligor is a party which is actually looking for additional funds. It could be a corporate, it could be a government or it could be any other business. So, this party wishes to raise additional funds for the business purpose, for the expansion of the business or for working capital financing whatever be the case. So, normally Sukuk issuance will require identification of a pre-existent asset that must be used for the issuance of Sukuk. The beauty of Sukuk Musharaka is that it does not require pre-existence of an asset before the Sukuk issuance or the Sukuk certificates are issued. So, Obligor as step one sets up a special purpose vehicle, we call it SPV. SPV is actually a company which does not have any business of its own, it does a special purpose. It is set up for a special purpose. In this case, SPV actually manages the Sukuk assets on behalf of the Sukuk holders. This could be set up in an offshore jurisdiction, Pakistan may offshore companies kaffee badnam hui hui hai. However, most of the SPVs in the context of Islamic banking and finance and in the context of Sukuk factoring they are actually set up in an offshore jurisdiction, primarily because setting up this SPV in an offshore jurisdiction would offer tech benefits to the Sukuk holders. So, once this SPV has been set up, the job of this SPV is to issue Sukuk certificate. So, it issues Sukuk certificate and the investors they buy these Sukuk, these certificates and they contribute money into the Sukuk. So, the funds come to the SPV and of course, SPV puts those funds into a segregated account in an account with a bank or with the many banks depending on the size of the funds coming into the Sukuk structure. Now, because this is a Sukuk Musharaka, then these funds contributed by the investors, they are combined with the funds contributed by the obligor i.e. the party which was looking for additional funds to start for example, a new project. So, with this structure you can see that there are characteristics of Musharaka already becoming visible. If I try to ask you to memorize the things, there is a concept of Tirkatul Mil and Tirkatul Akht. In one example, we highlighted Tirkatul Mil and in another example previously, we highlighted Tirkatul Akht. Now, investors actually in this case amongst themselves could be subject to the rules of Tirkatul Mil. They become Kirik, they become partners not by way of any contractual arrangement, but just by their act of putting money into a joint pool. However, obligor and the fund, obligor and the fund, they could be considered as subject to Tirkatul Akht. So, this is already a visible form of Musharaka. Now, the funds are there and the project gets funded and if there is any return, that return actually goes to the two partners, two major partners i.e. the obligor and of course, the investors they get their share in such a way that the share going to the to cook investors is equivalent to the indicative rate of return. If it was 3 percent, 4 percent, 5 percent, only that much of the return would be distributed amongst the investors and if there is an excess there, that would go into an excess fund. So, excess return would be put aside or this can be reinvested in the project alright. Now, once the to cook period ends, in that case, the to cook is actually redeemed. This project is sold to the obligor for an agreed price and this price cannot be pre-agreed because this is an example of Tirkatul Akht where a pre-agreement on the final price of the project is not allowed. So, whatever is the price agreed at the time of the end of the to cook period, that price comes to the fund to cook fund and that is then given back to the investors as their initial investment. So, during that period the investors as joint owners, they would get shares in the return on the project on a pro rata basis and of course, they would be general distribution of returns between the obligor and the investors as an investors class. So, this is one example of application of Tirkatul Akht and implicitly we have looked into Tirkatul milk as well.