The IslamicShariahprinciples for investment in stock market

Md. Mahmudul Alam (), Chowdhury Shahed Akbar, Shawon Muhammad Shahriar and Mohammad Monzur Elahi

Qualitative Research in Financial Markets, 2017, vol. 9, issue 2, 132-146

Abstract: Purpose - Because of chronic financial crises experienced during past several decades repeatedly and a failure to protect investors’ rights as a result, the world is looking for an alternative form of stock market for quite some time so that interests of all relevant stakeholders can be safeguarded. At the same time, from the perspectives of devout Muslims, the current form of stock market restricts a Muslim to make investments in the market because of several unsatisfying provisions from the viewpoint of the Islamic law known asShariah. This study aims to provide the criteria under which conditions of the IslamicShariahpermit making investments in the stock market. Hand in hand with that primary discussion, it has been eluded briefly why the IslamicShariahprinciples offer a better alternative against conventional practices of the stock market. Design/methodology/approach - This is a descriptive study based on the literature review. Findings - This study explores the basic Islamic principles of investment in the stock market by revisiting the norms laid down byShariahand current global practices of Islamic stock market and indexes. Originality/value - This study will work as a guideline for investors and market authorities to understand the originalShariahrulings and the benchmark rulings for investment or establishing full-fledged Islamic stock markets, indexes and mutual funds.

Keywords: Islamic banking; Shariah; Capital market; Islamic stock exchange; Share market; Zakat on share investment; G11; P1; P47; P5 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
Working Paper: The Islamic Shariah Principles for Investment in Stock Market (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:qrfmpp:qrfm-09-2016-0029

DOI: 10.1108/QRFM-09-2016-0029

Access Statistics for this article

Qualitative Research in Financial Markets is currently edited by Prof Bruce Burton

More articles in Qualitative Research in Financial Markets from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().