Zakat on Financial Instruments

The objective of this paper is to create a gap between zakat on financial institutions and financial instruments held by the individuals. As zakat on financial institutions are already recognized by the financial and standard setting bodies but a new development especially for the underlying contract that warrant us to visit the subject with an intention to recognize zakat on financial instruments owned by individuals. The concept of real owner is discussed when a financial instrument is issued by financial institution and bought up by client debt or installment basis. Efforts are made in this paper to find the 'real owner' of such financial instruments on whom zakat must be made obliged once it meet minimum standard of nisab