Saharanpur: Outlining six norms for
investment in capital market by Muslims, Islamic seminary
Darul Uloom Deoband has said followers can invest in the
equity of a company which is not involved in production of
liquor and interest-based businesses.
Mufti Fakhrul Islam while issuing a fatwa said Muslim can
invest in those companies which have movable as well as
immovable properties.
The seminary said that a part of the profit should be
distributed among the poor. Besides, it has also advocated for
taking informed decisions before making investments in the
equity market.
An investor is required to register protest in the
shareholders meeting if they come to know that the company
earns or pay interests for doing its business, Mufti said.
It has also cautioned that people should not invest in
those companies whose sole objective is profit-maximisation.
The move assumes significance as questions were raised
here from quite some time regarding whether a Muslim can
participate in share market.
Prime Minister Manmohan Singh had earlier asked the
Reserve Bank of India (RBI) to look into Islamic banking
practices in Malaysia.
There is a pressure on the central bank to introduce such
a system, a kind of interest-free banking system, in the
country.
The move could fetch billions of dollars in investments
from countries in the middle-east.
As per estimates, close to USD 1 trillion is being
managed by about 400-500 Islamic banks worldwide and by 2020,
the figure is expected to touch USD 4 trillion.
The judiciary, however, is not favourably disposed
towards Islamic banking institutions in India.
PTI
