Fatwa No : 78056
Ruling on doing business in Pakistan Stock Exchange

Ruling on doing business in Pakistan Stock Exchange

How is it to do business on Pakistan Stock Exchange, means, to buy and sell shares?

الجوابُ حامِدا ًو مُصلیِّا ً

It should be clear that if the purchase and sale of shares is done keeping in mind the following conditions, then it is undoubtedly permissible, and the profit derived from it is also permissible and halal. Those conditions are:
(1) The actual business of the company whose shares are being purchased is halal.
(2) Some fixed assets of this company must also have come into existence, that is, they are not only in the form of cash, otherwise the purchase and sale will be permissible only with an amount equal to the face value.
(3) No specific amount of monthly or annual profit should be definitely fixed, but rather the profit should be fixed as a percentage of the income.
(4) There should be a share in both profit and loss.
(5) If the company deals in interest-bearing transactions, then a voice should be raised against interest in its annual meeting (A.G.M).
(6) When profits are distributed, it should be ensured that the portion of the profit that was earned from interest-bearing deposits is given as charity to the poor and needy without the intention of reward.

مأخَذُ الفَتوی

کما فی فتح القدیر:قال رسول اﷲ ﷺ لا تبیعن شیئًا حتی تقبضہ۔(6/137 فصل ومن اشتری شیئا مما ینقل باب المرابحہ والتولیہ ط رشیدیہ)۔
وفی الھدایۃ: ومن اشتری شیئا مما ینقل ویحوّل، لم یجز لہ بیعہ حتی یقبضہ لأنہ ﷺ نھی عن بیع ما لم یقبض، ولأن فیہ غرر انفساخ العقد علی اعتبار الھلاک الخ (ج3 ص110 باب المرابحہ والتولیہ ط البشری)۔