Question:-
Are we permitted to purchase shares on the JSE?
Answer:-
There is a difference of opinion amongst the scholars with regards to buying and selling shares on the stock exchange. Some of the Muftis are of the opinion that trading on the stock exchange is valid with the proviso that, the company invests in Halaal products and should not be dealing in interest, or any objectionable transactions etc.
However, Faqeehul-Ummat Hadhrat Mufti Mahmood Saheb Rahimahullah, after being explained the mechanism of the South African Stock Market, responded by saying,
“In terms of the Shari’ah, the buying and selling of shares in the company set up is not a Bay’ (Sale), nor Ijaarah (Leasing), nor Shirkah (Partnership), nor Mudharabah (Sleeping partnership), nor Qardh (Loan), nor ‘Aariyah (Loan), nor Wade’at (Trust). It does not fall in the category of any Shar’ee transaction. One should therefore refrain from entering such a transaction.”
Based on the above, we, at the Darul Ifta, advise abstention from investing or trading on the JSE.
ALLAH TA’ALA KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date: 14 Rajab 1443 / 16 February 2022
