Ruling for keeping shares in companies that fluctuate between halal and haram

Fatwa ID: 03126

Answered by:  Maulana Mustafa Umar​

Question:

I have bought shares of Halal companies but the problem that I am facing is that the next day or a couple of days later those companies shares become Haram and then a few days later they become Halal again and this keeps on happening.

So do I have to sell the shares of the company straight away or can I keep the shares of these companies for a certain period of time and wait for them to become Halal and if they still don't become Halal within that certain period of time then I have to sell them?

Is there a certain period of time that I can keep the shares and wait for them to become Halal again and if so how long would that period be?

 

Answer:

In The Name Of Allah, The Most-Merciful, The Most Kind

 

You have not clarified what is causing these companies to fluctuate between halal and haram. Perhaps you are referring to the debt-to-equity ratio fluctuating every few days.

Nonetheless, since it is clear this is happening, you should avoid purchasing such shares. The Prophet said, “"The halal is clear and the haram is clear, and between them are matters unclear that are unknown to most people. Whoever is wary of these unclear matters has absolved his religion and honour. And whoever indulges in them has indulged in the haram. It is like a shepherd who herds his sheep too close to a preserved sanctuary, and they will eventually graze in it. Every king has a sanctuary, and the sanctuary of Allah is what He has made haram.” [Bukhari & Muslim] Therefore, do not even go close to the haram borders that Allah has set.

 

Only Allah knows best

Written by Maulana Mustafa Umar

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

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