FAQs: Investment Law and Foreign Stocks

Question:

How the law of investing in futures trading (stocks / forex) on a stock exchange?

Hanik

Answer:

Wa'alaikumussalam.

Share purchase transaction with various kinds including the sale and purchase important species in the kiwari this, so bermunculanlah capital markets or exchanges. Therefore, this question is very striking and very important for a Muslim to be answered. A Muslim must know where that is allowed and what is not allowed. In general, in terms of types and activities of companies that issue shares, the share purchase transaction is divided into two:

1. Companies that berkegiatan in efforts permissible, such as: corporate farms, industrial, and commercial. If the clause is not there rules that the relevant provisions must bermuamalah with muamalah usury or other unlawful matter, then a Muslim is allowed to be shareholders and engaged in buying and selling shares.

2. Companies that berkegiatan in efforts haram (forbidden), such as conventional banking companies, and companies producing or trading illicit goods (eg tobacco and liquor). Thus, a Muslim, forbidden to become shareholders and engaged in buying and selling shares. (Please refer to this problem in the book Al-Fiqh Al-Muyassarah, pp. 24, by Prof.. Dr. Abdullah Ath-Thayar)

This concerns problems buying and selling shares of the company, in general.

Meanwhile, if viewed in terms of existing securities transactions, the Islamic Fiqh Academy (Majma 'al-Fiqh al-Islami),an agency review under Rabithah fiqh Al-Alam Al-Islami, has elaborated and established the law of each transaction at their seventh conference, held in 1404 H in the city of Makkah Al-Mukarramah. In connection with this issue, the Panel rendered its decision as follows:

First: The primary target market / stock market is to create permanent and simultaneous, which embodies thebargaining (bargaining) and demands (demand), as well as meetings between the merchants and buyers to make buying and selling. It's a good thing and beneficial, can prevent the entrepreneurs who took advantage of people who are careless or naive who wish to make a sale and purchase but do not know the true price, not even knowing who want to buy or sell anything to them.

However, a clear benefit of this, the stock market in the world, covered by various kinds of transactions are very dangerous according to the Shari'a: gambling, take advantage of the ignorance of people, and eat people's money in a way forbidden. Therefore, it is not possible to set a general law for the stock market in large scale. However, that must be explained is the buying and selling all types of transactions contained in them, one by one separately.

Second: That the instant transaction for goods that are in the ownership of the seller to be handed over - if required that there must be a direct handover when the transaction according to the Shari'a - the transaction is allowed, as long as the transaction was not against the illicit goods according to Shari'a, too. However, if the goods are not within the ownership of the seller, then the terms "buying and selling as-salam" must be met. After that, then the buyer may sell the goods, although he has not received the goods.

Third: In fact, related to the instant transaction of stocks and corporate bodies, if the shares had indeed been in possession of such a transaction, the seller is fine according to the Shari'a, as long as the basis of business or business entity is not haram. When the basic business is haraam, such as usury bank, liquor companies, and the like, then the share purchase transaction is to be forbidden.

Fourth: That the transactions are instant and mail accounts with deposits of interest system, which has a variety of forms, it is not allowed according to sharia, because all of them are buying and selling activities based on usury is forbidden.

Fifth: That the transaction deposits - with all its forms - against contraband, namely stocks and goods that are not within the ownership of the seller by way of prevailing in the stock market is not allowed under sharia, because it sells goods that are not owned. On the basis that he (the seller, ed.) Will buy it and give it a later date when the transaction.

This method is prohibited by the Shari'a, based on authentic hadith of the Prophet sallallaahu 'alaihi wa sallam that he said, "Thou shalt not sell something you do not have." Likewise, narrated by Ahmad and Abu Dawud with a sahih chain from Zaid bin Thabit radhiallahu 'anhu, that the Prophet sallallaahu' alaihi wa sallam forbade to sell goods that are purchased before transporting them to the traders on horseback they (narrated by Ahmad in his Musnad , V: 191; Abu Dawud, no. 3493).

Sixth: Transaction deposits in the stock market is not a "sale and purchase as-salam", which is allowed in Islamic law, because they differ in two respects:

1. In the stock market, prices of goods are not paid directly at the transaction, but payment is deferred until the close of the stock market. Meanwhile, in " buying and selling as-salam ", the price of goods should be paid first in the transaction.

2. In the stock market, transactions of goods sold in recent times sales, while goods are in the possession of the seller first. The goal, nothing but still hold it or sell goods with a maximum price to the buyer and other traders, not real; a speculative look at trade-offs, just like gambling. In fact, in " buying and selling as-salam ", conducting the transaction is not allowed to sell goods before the goods are received.

Therefore, the Islamic Fiqh Academy (Majma 'al-Fiqh al-Islami) held that the person in charge in various Islamic countries are obliged not to allow these exchanges do as they pleased with their activities create a variety of transactions and trading in their countries , both the legal permissible or forbidden. They should also not give an opportunity for people who are playing the price that leads to financial disaster and ruin the economy in general, and ultimately lead to disaster for most people, because of the good that is in fact adhering to the teachings of Islamic Sharia in all things. Allah says, 
هذا صراطي مستقيما فاتبعوه ولا تتبعوا السبل فتفرق بكم عن سبيله ذلكم وصاكم به لعلكم تتقون
"And that (which we ordered), this is My straight path, so follow it and do not follow the streets (the other), because the roads that will scatter you from His path. That is commanded by God to you for you may become pious. "(Surat al-An'am: 153) 

Allaah is the Helper that provides taufik, which give clues to the straight path. Hopefully terlimpahkan salawat and greetings to the Prophet Muhammad.

Such information gathering agencies that are container fiqh scholars world.

A few answers from me. Hopefully useful. Wabillahi Taufiq.

Source: www.ustadzkholid.com 

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