Investments in the Stock Market

10-4-2002 | IslamWeb

Question:

I had invested money in stock market, through my bank, after checking my shares with the bank, I found shares used in Haram activities. What shall I do? It's an important amount, and if I have to give up this money, how will I do it, to whom will I give it?

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

 

If your money is invested in a forbidden business, without your permission or knowledge, you are not sinful. Only the one who has invested your money in such a forbidden business is sinful.

Since you have known that, you are not permitted to endorse his work. You have to withdraw your money and its forbidden interest, and then use the interest in general public welfare of the Muslims, such as roads and hospitals, or distribute it among the poor and needy.

Here, we draw your attention to the fact that if you want to have lawful trade in money and stock market, you have to do such a business through an Islamic bank; i.e. a bank that does not deal with Riba (interest and usury), otherwise, it becomes forbidden.

In addition, it is forbidden to do a business through usury-taking banks in any way or form. Also, it is forbidden to invest your money in forbidden business, big or small. It is forbidden to trade in your money with a company that deposits its properties in usury-taking banks. Anyway, it is difficult to find a company that does not deal in such above-mentioned violations.

Allah knows best.