SC Shariah Advisory Council Accepts Single Stock Futures as Shariah-Compliant Instrument - Media Releases (2024)

FAQs

Are futures Shariah compliant? ›

If you have an existing conventional Futures Trading account, you can apply to open a Shariah-Compliant Futures Account as well. As an individual client, you must: Complete the required details on the Application Form and Individual Self-Certification Form.

Shariah indices exclude companies with Accounts Receivables/Market equity value greater than or equal to 49 %. In Shariah compliant companies, revenues from non-compliant activities are permissible only if the revenue from the non-permissible income is less than 5%.

Futures trading is generally considered haram in Islam according to many scholars. There are two main reasons: Sale on a future date: Islamic finance emphasizes buying and selling things that already exist. Futures contracts involve agreements on prices at a future time.

Shariah-compliant securities are securities of a public-listed company which have been classified as Shariah permissible for investment, based on the company's compliance with Shariah principles in terms of its primary business and investment activities as well as financial position.

The Futures transaction as in vogue in stock and commodities markets today are not permissible for two reasons. Firstly, it is a well recognised principle of the Shariah that sale or purchase cannot be affected for a future date. Therefore, all Forward and Futures transactions are invalid in Shariah.

These three requirements (existence, ownership, possessions) are essential from an Islamic perspective. Therefore, forwards and futures are not permissible in Islam. If we miss any of the above-mentioned elements, we can consider the contract invalid because of the presumption of gharar.

Since Tesla is not involved in any of those industries, its stocks are considered Shariah compliant.

When it comes to day trading – some scholars have agreed that it is permissible, even though their views primarily emphasize caution and strict adherence to Islamic principles, such as Shaykh Taqi Usmani and Dr. Wahba al-Zuhayli. However, there are still different views on it.

Is Louis Vuitton stock halal? ›

Since the threshold for non-permissible income in a Shariah compliant company is 5%, LVMH MOET HENNESSY LOUIS VUITTON SE breaches the Shariah compliance criteria and is classified as Shariah non-compliant.

As long as there is no illegal activity, then trading or investing in crypto should not be deemed to be contrary to Shariah principles. There has been some discussion amongst Muslim scholars around the use of cryptocurrencies for illegal activities such as gambling, drugs, and money laundering.

It has committed to using renewable energy sources for the business activities. Based on these instances, we consider that the business model that Amazon follows Amazon is in compliance to Halal investment guidelines.

The S&P 500® Information Technology Shariah Index offers a Shariah-compliant version of the S&P 500 Information Technology, which includes companies in the S&P 500 that are classified as members of the GICS® Information Technology sector and sub-industries.

Yes, Apple shares can be considered Halal.In conformity to Sharia law, ownership shares is considered Halal in the event that the company does not engage in any activities such as gambling, lending or producing alcohol pork, tobacco p*rnography, alcohol, or tobacco.

Are crypto derivatives like futures halal? Nearly all scholars agree cryptocurrency derivatives that involve speculation and open risk like futures trading are strictly haram.

Investopedia states "In Islamic finance, most derivative contracts are forbidden and considered invalid because of the uncertainty involved in the future delivery of the underlying asset. the majority of Islamic scholars agree that options have features of speculation and gambling.

🙋Attention to all Muslim traders:🔊🔊🔊 "Dear crypto trade | Crypt_Studio on Binance Square. "Dear crypto traders, please be cautious! Binance's futures trading feature entails interest-based borrowing, which contradicts Islamic principles as it is considered haram.

Traditional future trades are usually not considered as shariah compliant. Perpetual future contract is not compliant either.