Fatwa No : 82562
Buying shares in cash and selling them on credit

Buying shares in cash and selling them on credit

What do the esteemed Islamic scholars and Muftis of the Shari'ah say regarding the following matters:
1.Is it permissible to buy shares of lawful (Shari‘ah-compliant) companies in cash and sell them on credit (installment or deferred basis)? The method practiced is that the shares remain in our possession, and on the last Friday of the month, payment is taken and delivery is made. Is this method correct?
2.Sometimes, it happens that we sell shares on credit from our own existing stock to a buyer, but before the payment is due, we find it beneficial to sell those shares to someone else. So, we sell the shares to a second party, and that party makes a similar arrangement with a third person, keeping the same due date as agreed with the first buyer. Then, when the due date arrives, we collect the amount from the second party and deliver (or assign) the shares to the first buyer. The first buyer also agrees to this arrangement because there is no difference in the shares themselves.

الجوابُ حامِدا ًو مُصلیِّا ً

1. In the mentioned case, if after the contract of sale (ʿAqd-e-Bayʿ), the risk of the shares that is, the profits and losses associated with that portion and the responsibilities related to it, is also transferred to the buyer, then this transaction is Islamically valid and permissible. Otherwise, it is necessary to avoid it.
2. In the second scenario mentioned, there are several elements of corruption (invalidating factors) found in the described method of buying and selling, due to which such a manner of trading in shares or any other commodity is not permissible according to Islamic law. It must be avoided. However, in such a case, it is permissible to initially make a promise of sale (waʿd al-bayʿ), and upon the availability of the item, to show it and then complete the sale.

مأخَذُ الفَتوی

وفي الفتاوى الهندية: الفصل الأول في حبس المبيع بالثمن قال أصحابنا رحمهم الله تعالى للبائع حق حبس المبيع لاستيفاء الثمن إذا كان حالا كذا في المحيط وإن كان مؤجلا فليس للبائع أن يحبس المبيع قبل حلول الأجل ولا بعده كذا في المبسوط اھ (3/ 15) ۔
وفی الفقه الإسلامي وأدلته للزحيلي: قال الحنفية: لا يجوز التصرف في المبيع المنقول قبل القبض بلا خلاف، لأنالنبي صلّى الله عليه وسلم نهى عن بيع ما لم يقبض والنهي يوجب فساد المنهي عنه ولأنه بيع فيه غرر لتعرضه إلى الانفساخ بهلاك المعقود عليه، فيبطل البيع الأول، وينفسخ الثاني، وقد نهى الرسول صلّى الله عليه وسلم عن بيع فيه غرر. (5/ 3381)۔