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