U-8 The Concept, Need and Significance of Sharia rating in Islamic Financial institutions in the perspective of Credit Rating Agencies

Sharia compliance is considered the basic component of Islamic financial industry as sharia permissibility one motive for majority customers Financial services. Presently assurance regarding institution given by Advisor or board respective institution. But there no process, similar to credit rating agencies, which provides public an independent assessment commitment different regard follow injunctions in true letter and spirit comparison with other institution.
 In this paper, concept rating, its origin, importance advantages are discussed. light agencies practices, elaborated. It observed recommended that quality will be very beneficial all stakeholders institutions well hence regulatory bodies institutions, IFI’s Credit Rating Agencies shall work together further refine implementation industry.