Legal and economic study of Rent Securities and their pathology in the Islamic banking system

Rent Securities is an instrument for Fiscal policies. These papers are mainly based on the lease-purchase contract. The essence of this contract is disputed among scholars. They call it Rent, Sale, combination of the two, Rent with condition of sale, Suspended sale or regard it an independent nature. Some principles of accuracy of contracts are intention of the words and their meanings and Serious will to create those meanings, at the time of conclusion of the contract. Neglecting these principles along with some other causes, creates the suspicion that contract is formal. Formalization of contracts leads to formalization of securities. Purchasers of securities do not care about the nature and elements of the contract, including the type of property, price, buyer, profit, ownership of property and its rent and only think about interest rate. These evidences along with other challenges suggest that these securities can not play a more effective role as a financial instrument.