❀ Question:
Is it permissible to invest in Shariah-compliant companies certified by the Shariah Board of the Karachi Stock Exchange?
❀ Answer by:
Fadhilat al-‘Alim Khidr Hayat (ḥafiẓahullāh)
◈ Ruling on Investment in the Stock Market:
According to our view, investing in the stock market or conducting business through it is not permissible. The reason is that there are numerous flaws and violations of Islamic principles found within the stock market, such as:
① Ribā (interest)
② Qimār (gambling)
③ Gharar (deception or uncertainty)
◈ Regarding the Shariah Board and Its Certification:
If the Stock Exchange has a Shariah Board providing Islamic guidance, then:
✔ If you are acquainted with the scholars on that board and you trust their writings and fatāwā, then you may act in light of their reasoning and proofs.
✔ However, one must remember that merely adding the prefix or suffix “Islamic” to any system does not eliminate all inherent flaws.
◈ General Opinion on Islamic Finance:
There are several concerns even in systems like Islamic banking, Islamic insurance, or Islamic stock exchanges.
Therefore, detailed investigation and confidence in their Shariah compliance is necessary before considering them legitimate.
◈ For Further Details:
Refer to Fatwa No. 31 of “Lajnat al-‘Ulamāʾ li’l-Iftāʾ”,
Available in the fatāwā section of the ‘Ulamāʾ website, which explains this topic in further detail.
❀ Conclusion:
Before investing, thorough research and confidence are essential.
Every Shariah compliance claim should be evaluated in the light of sound evidence.
