FAQs

In case a stock becomes non-compliant after some time of purchase, what should be course of action. Scholars suggest that once a stock becomes non-compliant it should be exited at the earliest (some suggest within 90 days) and the applicable amount based on the purification ratio to be given in charity. In case there is […]

In India TATA ethical fund has been marketed as ethical/shariah compliant mutual fund. The fund is actively managed by a shariah board and is backed by fatwa of TASIS. However, with regards to some of the IT sector companies that are part of the portfolio of the funds there are some reservation with respect to

Is it haram to work for companies in which investment is not allowed? Although, we could not find a specific fatwa on the topic, but logically speaking investing and working are two different aspects. The basic parameter for employment is that the core activity of the company is halal and compliant and it does not

If one has bought shares in a company not knowing it is haram or not shariah compliant, he has to sell whatever he owns of shares in that company, but he does not have to purify anything; if selling it will cause a loss, then he may wait until he can regain his capital. Fatwa

Upon realization of investing in non-compliant companies, the individual should seek forgiveness from Allah swt and resolving not to do it again. Scholars have advised that such shares be sold and the appreciation be given in charity while the capital is to be retained by the investor. Detailed fatwa is as per below link.