A LEGAL ANALYSIS TO PARTNERSHIP SECURITIES: PARTNERSHIP SECURITIES; NON-MARKET SECURITIES

Abstract

Always there has been this question in the minds of experts that whether the partnership securities (<em>ouräghe moshärekat</em>) have been able to substitute debentures in the market properly? Present legal analysis shows that partnership securities as a substitution for debentures are needed for the market. But despite fundamental differences between stocks and debentures, partnership securities are a compound of stocks and debentures. They have both the advantages of stocks and debentures without getting suffered from disadvantages of each of them. In addition, legal questions on management of the subject project of these securities as well as responsibility out of these securities for its holder has not been considered by the legislature. The mechanism considered for partnership securities although approved from the Islamic jurisprudential (<em>fiqhi</em>) view contains faults from the legal economy view. Therefore, such securities practically in the market, within the private sector, have not been acceptable so have not been accepted or used. As a result, partnership securities could not substitute debentures perfectly.