General English Fatwa Translation

Reference:

02

Darul Ifta, Darul Uloom Deoband

Date:

QUESTION
Respected Mufti Sahib
Darul Uloom Deoband UP
Assalamu Alaikum wr wb
What the Ullama and Muftis say about the question mentioned below:
What are the conditions to buy shares of a company? Please, explain in the light of Shariah.
Questioner:
Muhammad Saleem, Meerut
Fatwa: 316/189/L/1431


!
It is allowed to buy and purchase shares under the conditions below:
(1) The company should not get involved in unlawful business, like it should not be interestbased bank, insurance company, wine company, etc.
(2) All the assets and possessions of the company should not be in cash but it should have some
frozen assets for example building, land and the company is in existence and these things are
known surely. Otherwise, selling with difference will be interest.
(3) If, after having become a member of the company, it is known that the company is involved in
any sort of interest transactions, then one should raise objection against it in its meetings.
(4) When the profit is divided, the part of the profit gained from the interest dealings should be
given to the poor without an intention of reward.
(5) The purpose of dealing in shares should be to achieve partnership in the business, it should
not be to earn profit only by equalizing profit and loss wherein the shares are neither possessed
nor the possession is meant, it is a form of gambling (Satta) which is unlawful.
(6) It should be known to both the parties how much percentage of profit and loss they will
share, e.g. the percentage of profit and the loss as per the percentage of capital.

Written by:
Verified by:

Fakhrul Islam, Assistant Mufti, Darul Ifta, Darul Uloom Deoband

Mahmood Hasan Buland Shahri, Naib Mufti Darul Ifta, Darul Uloom Deoband
Zainul Islam, Naib Mufti, Darul Ifta, Darul Uloom Deoband
Waqar Ali, Assistant Mufti, Darul Ifta, Darul Uloom Deoband
Translated by: Muhammadullah Khalili Qasmi, Internet Dept, Darul Uloom Deoband
Date: 29/02/1431 = 14/02/2010