Resolutions of Iftaa' Board



Resolutions of Iftaa' Board

Resolution No.(68): “Ruling on Investing and trading in Stocks of Public Shareholding Companies“

Date Added : 02-11-2015

 

Resolution No.(68): “Ruling on Investing and trading in Stocks of Public Shareholding Companies“

Date: 5/8/1424 AH corresponding to 1/10/2003 AD.

 

The Board received the following question:

What is the Ruling of Islamic Sharia on investing and trading in stocks of public shareholding companies?

Answer: All success is due to Allah.

After careful study and deliberation, the Board believes that investing and trading in stocks of public shareholding companies, which deal in illegal business such as trading in wine or producing it, is forbidden, and the same ruling applies to similar companies.

As regards companies that deal in lawful business, which was slightly mixed with that which is unlawful such as dealing in usury, investing in them is permissible, provided that the investors remove the usurious amounts from their profits and give them to the poor and needy Muslims. And Allah Knows Best.

Iftaa` Board

Chairman of the Iftaa` Board, Chief Justice, Izz Al-Deen Al-Tamimi

   Dr. Mohammad Abu Yahia     

  Dr. Ahmad Hilayil     

    Sheikh Mahmoud Shwayyaat

Dr. Yousef Gheezaan

Dr. Wasif Al-Bakhri

 Sheikh Saeid Hijjawi

Sheikh Na`eim Mujahid

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Summarized Fatawaa

Should one obey his mother even if she was wrong?

Obeying one`s mother is an obligation in matters that are beneficial to her and so long as she didn't drive her children to commit an act of sin.

Is it permissible for the guardian, or the father of the child to hit the latter in order to teach him/her good manners?

It is permissible for the guardian to hit his/her child for teaching them good manners once they become ten years old provided that it is done mildly, harmlessly and without intimidation. Actually, such punishment is to be employed gradually i.e. after: asking, warning, and scolding. As for the teacher, he isn`t allowed to hit the student unless the latter`s father approves of it, and it is done according to necessity without intimidation, or harm.

There is a car dealership, and their method of selling is as follows: The customer pays the full price of the car, the car is registered in their name, and another contract is written in which the company commits to refunding the full price of the car to the customer after one year from the purchase date. What is the Islamic ruling on this transaction?

As for purchasing the car, paying its price, and owning it, this is a valid sale with no issue. However, the condition of refunding the price — whether the car is returned to the seller or not — is an invalid condition that nullifies the entire contract. Therefore, this transaction is invalid and not permissible. And Allah Knows Best.

Is it permissible for a Muslim to escort his deceased disbelieving relative to his final resting place?

It is permissible provided that he doesn`t walk behind non-Islamic symbols, rather he should walk in front of them.