Musharakah bonds are securities, which are issued at a specific nominal price for a certain period and are given to investors who intend to participate in the implementation of the projects referred to Article (1)(The law on how to issue Musharakah bonds).
The holders of these bonds will be partners in the profit from the implementation of the related plan in proportion to the nominal price and the duration of participation.

The Rate of Return

The on account rate of return in Musharakah bonds can be determined using the following mechanisms in a floating manner:

1- Floating on account rate of return: In this method, the rate of return on Musharakah bonds is determined based on the inflation rate plus a certain percentage paid by the originator or issuer to the bond holders as a loan to be settled at maturity based on the actual profit of the project.

2- Using put option for investment based on a specific formula: in this method, in addition to the company contract, the issuer gives the partners who are the holders of the Musharakah bonds the right to receive the share of the company, either during the periodic rate of return payments on account or at the final maturity to sell their shares, which consists of the nominal value of the bonds plus the rate of return on the bonds determined based on a certain formula (inflation plus a certain percentage), to the bond issuer or market maker.

3- Using pu option for the investor based on a specific formula (inflation plus a certain percentage) and purchase option for the issuer (based on a specific formula): In this method, in addition to the company contract, the issuer gives the partners who are the holders of the Musharakah bonds, the right to receive their share of the company, which consists of the nominal value of the bonds plus the rate of return on bonds to sell the bonds to the issuer or market maker based on a certain formula (inflation plus a certain percentage), therefore the bond buyers give the issuer the right to have purchase option of bonds (if allowed to buy) at the specified maturity based on a certain formula (inflation plus a certain percentage).

It is not permissible to merge two options trading in Musharakah bonds.

In Musharakh bonds, the definite rate of return must be calculated and paid to the investors.

Originators and investors can invest in projects with certain ratios and divide the principal assets and the resulting profit with other ratios at maturity (with preferential ratios for the benefit of investors).

Primary market

It is permissible to list Musharakah bonds by increase or discount.

Secondary market

According to the first principle in the company contract, if the investor transfers the bonds, he has transferred all the rights and benefits, therefore the next holder of the bonds will be the owner of those rights and benefits. But if at the beginning of the partnership, it is agreed and specified that all investors (even those who owned the bonds in a period but now sold the bonds) will have the right to gain the final profit of the bonds, then it is obligatory to commit the agreement.