Islamic Equity Crowdfunding (ECF-i)

Equity Crowdfunding

Equity crowdfunding refers to obtaining funds by offering company shares to several investors, generally through online platforms. Equity crowdfunding, as opposed to conventional crowdfunding, gives investors ownership interests in the firm, making them shareholders who may see a return on their investment.

Equity crowdfunding allows business owners to raise money from a broader spectrum of investors. It also gives investors access to fresh possibilities previously only available to institutional investors.

For both business owners and investors, equity crowdfunding has several advantages. It offers business owners the chance to acquire capital without giving up ownership or management of their enterprise. Investors can put money into early-stage start-ups and profit from their investments.

Islamic Finance

Islamic finance is founded on the concepts of Maqasid Al-Shariah, which are a set of guidelines designed to promote the well-being of the individual and the community. The elimination of poverty, the promotion of sustainable growth, and the improvement of standards of living are all important objectives of Islamic finance practice.

Some of the most important characteristics of Islamic finance include the prohibition of interest, the requirement of honesty and transparency in business operations, and the emphasis on social responsibility. The adoption of these universal values and morals is, of course, not limited to Muslims, but is shared by a great number of people who hold these values and morals in high regard.

Islam prohibits short selling, manipulation, and other shady operations that are prohibited by Islamic law (Shariah) as Islamic products and contracts are designed to be free of riba (interest), gharar (uncertainty), and maysir (gambling).

The concept of Islamic finance is not limited to Muslims, but is open to anybody who believes in the importance of honesty and fairness in financial transactions.

Islamic Equity Crowdfunding

Islamic Equity Crowdfunding (ECF-i) is an Equity Crowdfunding that complies with the shariah law. Which means, this campaign will be free from any forms on Rinba (usury), Maisir (Gambling) and Gharar (ambiguity). On top of that, the funds raised must be used productively and interest-based income is considered exploitation and prohibited. Unethical industries and commodities, such as arms, gambling, and alcohol, are also off-limits.

AMB Connect is a registered Equity Crowdfunding Platform operator that has fulfilled the SC's guidelines for offering shariah compliant equity on its platform. The Shariah compliant equity hosted on its Platform is not only limited to Muslims. It is available and accessible to anyone regardless of faith and religion.

Key features of Shariah-compliant ECF deals

1. Endorsement of Shariah-compliance of the Issuer and deal prior to able to host campaign:
2. All investments made by investors will be placed in a Shariah compliant trust account
3. Continuous monitoring of Shariah-compliance status as Issuers are required to maintain their Shariah-compliant status throughout the company lifetime or at least for as long as the Investors are still holding legal and/or beneficial ownership of shares in the Issuer. To maintain the status, Issuers must abide by the requirements and benchmarks specified by AMB Connect. AMB Connect will continuously monitor the status of the Issuers on a regular basis on behalf of the Investors.