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Is forex trading permissible in Islam?
The general consensus among Islamic Jurists is that buying and selling of currency is permitted as long as it is done on the spot, and there is no delay of time in exchanging the currencies.
Therefore, forex trading is permissible as long as there is an immediate exchange of cash. Although paper currencies nowadays are not backed by gold or any other precious metals (which is impossible since the total amount of trade globally is more than the amount of gold produced so far), it should be presumed that the currencies in circulation has the same purpose and intent as gold, since it is appreciated by human, albeit artificially.
Syariah law dictates that any exchange gold and silver must be done immediately. Hence, exchanging of currencies in the Forex market should be done immediately, without delay. This is usually the case in the Forex market nowadays.
However, in cases where the handing over of the “commodity” is done within a grace period of two days and not immediately, there is an opinion within the Maliki school of thought which states that a slight delay in transfer of the commodity does not invalidate the sarf (exchange) contract. This is also the view adopted by the the Fiqh Academy and Organisation of Islamic Countries (OIC). Therefore the delay of two days in the case Spot Trading is permissible.
I would like to check on the ruling on the permissibility of investing in the Singapore stock market?
MUIS does not certify individual stocks and investment portfolios. It is up to the investor to assess the shares they are interested in, by getting more information from the companies themselves.
There are some companies which are already listed as Syariah-compliant. It is clear that these shares are permissible for Muslims to buy.
As for other companies that are not listed or certified per se as Syariah-Compliant, the principle is that it is permissible as long as the company is not involved in sectors such as gambling, weaponry, porcine products, and products that harm Muslims and the environment. In today's world, almost all big corporations are involved in some sort of Haram transactions. Thus, to further ascertain that a company is permissible to be invested on, or its shares be bought, the following should be taken into account:
a) No more that 15% of the company's nett income comes from interest and other prohibited transactions. If it is more than 15%, the company's stocks and shares cannot be bought.
b) Borrowing/equity ratio must not exceed 33%.The income you get from such investments must be purified first before consuming it. This can be done by giving an intelligent estimate of the percentage of non-halal transactions the company dealed with. Deduct that amount of percentage from your income and donate it to Islamic charitable organisations, such as mosques and institutions.
Workmen compensation, purchased and paid for my late brother by his company. Does it fall under the estate of the deceased & should it be divided according to the certificate of Inheritance? or it is consider a gifts/token?
If the compensation money is a part of a contribution of the deceased and is considered under an insurance scheme, then the money is part of the estate that is liable to be distributed in accordance to inheritance law.
However if the compensation money is granted by the employer without any contribution by the deceased and it is granted due to the death of employee, then it is considered as a gift and is to be included in the deceased's estate.
Therefore, if the money is not part of deceased estate, which is liable for inheritance distribution, then the distribution is up to the discretion of the company.
Is the payout from a group insurance be distribute according to faraid or not?
The Fatwa Committee has previously issued a position that where the group insurance policy allows the employee to make a nomination, such nomination is considered a gift (hibah) and the pay-out does not part of the estate.
The Fatwa Committee also maintains that only when the employee is the sole named beneficiary of the group insurance policy and there is no other named dependents of the employee specific in the contract, the pay-out would form part of the deceased’s estate, to be distributed according to Faraidh as stated in the Certificate of Inheritance.
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