An Islamic brokerage company has raised the following query seeking Shariah guidance

Fatawa Question

An Islamic brokerage company has raised the following query seeking Shariah guidance; Pursuant to the initial public offering (IPO), a new company has been established with an aim to carry out Shariah compliant business activities as stated in the company documents made public, including the offering circular. The share capital collected through the IPO has been deposited to a conventional bank (which is one of the founding shareholders) as a term deposit, until the time the company starts to invest it in its business activities. This may take a number of months. Shariah guidance is sought as to whether it is permissible for the Islamic brokerage company to get involved in the facilitation of the purchase and sale of shares of the new company in its current state.

Fatwa

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Publisher

Islamic Finance News

Publication Date

2014-10-22

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-783177

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• MLA
• AMA