Title: Assalamualeyikum, Are we muslims (Allowed) to invest in share market. E.g. I am planning to buy shared for IT Companies like HCL, Wipro, or Reliance. What all shares we (Muslims) can buy and what all shares we can't buy Jazaakumullah!

Question: Assalamualeyikum, Are we muslims (Allowed) to invest in share market. E.g. I am planning to buy shared for IT Companies like HCL, Wipro, or Reliance. What all shares we (Muslims) can buy and what all shares we can't buy Jazaakumullah!

Answer ID: 10061Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 48/48=L/1429)

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 be not interest-based 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 form 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.