In all societies, there is some group of owner’s funds and cash savings who don’t have any desire or ability to invest directly in profitable economic activities. On the other hand, many entrepreneurs with knowledge, experience and potential do not have the financial resources required for investment. Money and capital markets with using a variety of financial instruments, play a significant intermediary role between these two groups.
The main goals of Central Asset Management company are establishment and management SPVs, in order to facilitate the implementation of intermediary actions".
Another basis of Islamic securities is market maker. Market Maker means a broker/dealer who, after obtaining the required permission, commits to deal in certain securities in a way to increase liquidity and regulate supply and demand for such securities with the aim to limit price fluctuations.
One of the responsibilities of Market Makers is to maintain market Smooth and Regular. Therefore, whenever the balance of stocks assigned to them become disturbing, they react by buying and selling shares in their accounts, help market to adjust supply and demand. So they must have adequate capital. In fact, they play the role of buyer and sellers in security market.
Market maker contains two concepts. In a sense, it operates as market management including different process such as planning, implementation and control variety of different aspects of marketing. In other hand, it means act as a mediator in trading and buying commodity in the name and selling them. In this part we talk about the second meaning.
Market maker institutions make secondary market securities more liquid and when securities market faced with recession, they help markets with dealing securities. They are obliged to buy securities from holders when they need liquidity and want to sell their securities in the secondary market because of absence suitable buyer in recession.