Investment in Companies and Banks
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The first question of Fatwa No. ( 8996 )
Q1: What is the ruling on investing in companies and banks ? Is it permissible for a person who has subscribed to a company or bank to sell his shares after subscription on stock trading offices, where it is likely they will be sold for more than the value the person subscribed for? And what is the ruling on the interest the subscriber receives each year on the value of his subscribed shares?
A1 : Investing in banks or companies that deal in riba (usury or interest) is not permissible. If the subscriber wishes to get rid of his interest-based investment, he should sell his shares for their market value, take only his original capital, and spend the rest on charitable causes. It is not permissible for him to take any of the interest or interest-based profits from his shares. However, if the investment is in a company that does not deal in riba, its profits are lawful.
Q1: What is the ruling on investing in companies and banks ? Is it permissible for a person who has subscribed to a company or bank to sell his shares after subscription on stock trading offices, where it is likely they will be sold for more than the value the person subscribed for? And what is the ruling on the interest the subscriber receives each year on the value of his subscribed shares?
A1 : Investing in banks or companies that deal in riba (usury or interest) is not permissible. If the subscriber wishes to get rid of his interest-based investment, he should sell his shares for their market value, take only his original capital, and spend the rest on charitable causes. It is not permissible for him to take any of the interest or interest-based profits from his shares. However, if the investment is in a company that does not deal in riba, its profits are lawful.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.