Main Article Content
Islamic Private equity capital investment is interest free investment with Shari’ah compliant, based on profit sharing as per agreed ratio of Islamic instruments. The Islamic private equity capital investment plays a vital role for the economic development of a country. The main purpose of this paper is to find out the prospect of Islamic Private Equity Capital investment through the Islamic co-operative society, Islamic financial Institution and Islamic Bank established in India with Shari’ah compliance as per the RBI directives 1997. This paper covers the economic development and to help the people of India through the IPEC investment. It also cover the role of the Reserve Bank of India for the establishment of Islamic banks in India with shari’ah compliance. This paper sort out the problems of IPEC investment and establishment of Interest free Islamic Bank regulation by the RBI. As per the census conducted in 2011, there are 172.2 millions of Muslim people living in India. At present India is the largest Muslim population outside Muslim-majority countries. In India the Islamic Private Equity Capital is relatively a new concept and finds its origin back less than a decade. The findings of this papers shows that the Islamic Banking if established will be more popular than the conventional banking for the economic growth through Islamic Private equity capital investment in India. This will help to develop the society by giving interest free loan to the people both the Muslim and the non-Muslim through the application of Islamic instruments(partnership agreement) mudarabah, musharakah, murabaha, Ijara, etc with the compliance of the principle of Shariah.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.