It is a contract based on which the supplier sells a certain amount of the underlying asset according to the specifications of the standard Salaf contract in exchange for a cash price to deliver to the buyer during the delivery period.

Primary Market

The price of the goods in the Salaf contract shall be paid in full by the buyer.
Proviso: It is permissible to sell a part of the goods in advance and receive the full price, and at the same time stipulate that the other part will be sold at a certain price upon delivery.

Salam bonds can be sold in the increasing or deducting ways.

Secondary market

Secondary trading of the bonds can be done in one of the following ways:

In secondary transaction, the seller sells the Salam in another independent contract and remits the goods to a third party. Also, since the remittance of the contract is obligatory, the bond seller is excluded from the Salam bond mechanism.
The conveyance can also be used for secondary transaction. In this way,  the seller compromises with a certain amount of goods against a certain amount that is paid according to a specific schedule, and delivers the goods sheet, so the buyer can sells the same goods whenever he wants.

The use of option contracts in the structure of bonds

The purchase and selling options can be included in the Salaf contract, which means that the buyer of the Salam can have the right to sell and the buyer can also have the right to buy the bonds.

Proviso: The price gap between the exercising of purchase option price  (K1) and the exercising of selling option price (K2) shall be in a way that the possibility of realizing the price of the product in that interval is acceptable from the experts' point of view. If there is no price gap and the prices are almost the same, the time gap shall be in a way that there is no possibility of exercising the options from the point of view of the capital market experts. The exercise price in two options shall be determined in such a way that the price of the underlying asset at maturity is between the two exercise prices in at least 20% of cases.

It is necessary to determine the mechanism related to the price of the two options according to the opinion of non-beneficiary experts (such as the listing board of stock exchanges).

Rate of return

It is not permissible to pay the rate of return on Salam bonds on account.

 Obligation (amount of money for guarantee)

It is permissible to use the obligation (amount of money for guarantee) for the parties in the Salaf contract in order not to violate the timely and complete fulfillment of their obligations in accordance with the provisions of the resolution approved by the Guardian Council.

Goods Delivery

. If there is an agreement with the bond holders, cash settlement can be done with the investors.
. In case of delay due to unforeseen circumstances, there will be no fines. But if the delay is unauthorized, it can be fined.
. The buyer can authorize the supplier to sell the product to the final consumer at the daily price and pay the difference to the buyer after deducting the fixed attorney's fee that is determined at the beginning.
. Giving the power of attorney by the buyer to the supplier (seller) for the sale of the property subject to the issuance of the bonds at maturity is permissible, but it is necessary to sell the bonds at the maturity date at the daily price.

. If the Salam bond is at maturity on a certain day, but its delivery is possible gradually over a certain period of time, the issuance of this type of Salam bond is permissible. In this type of bond, after the maturity date the Salam transaction is over, and the delivery period begins according to a certain schedule. The transaction of this kind of Salam bonds after maturity in the delivery period is permissible from both the point of view of Shariah principles and the specification of having the function of remittance of goods.
. Giving the right to the owners of the bond to receive the subject of the bonds before the maturity date is permissible.

Issuance of bonds in foreign currency

Investors can buy a certain asset from the initiator in the form of the Salaf contract by paying a certain amount of currency or its Rial equivalent (at the daily rate of the open market). If the owners of the bonds sell their assets to the originator at maturity, settlement with the investors is done according to the contract by paying foreign currency or its Rial equivalent (at the daily rate of the open market).