This article needs editing to comply with Wikipedia's Manual of Style. Please help improve the content.(May 2024) (Learn how and when to remove this message)
An Islamic Development Bank branch in Dhaka
The Islamic banking and finance movement that developed in the late 20th century as part of the revival of Islamic identity[1] sought to create an alternative to conventional banking that complied with sharia (Islamic) law. Following sharia it banned from its practices riba (usury) – which it defined as any interest paid on all loans of money[2][3] – and involvement in haram (forbidden) goods or services such as pork or alcohol. It also forbids gambling (maisir) and excessive risk (bayu al-gharar).
This meant that not only were interest-bearing loans, accounts, and bonds not allowed, but many financial instruments and activities common in conventional financial markets have been forbidden by most Muslim scholars because of their connection with maisir or gharar[Note 1] (and also sometimes because they involve payment of interest). These include margin trading,[Note 2] day trading, short selling,[6] and financial derivatives[Note 3] such as forwards, futures, options, and swaps.[Note 4][9]
This, however has not stopped the Islamic finance industry from using some of these instruments and activities, and their permissibility is a subject of "heated debate".[10] While they often involve more risk than other investments and are used by speculators, they are defended as having useful economic functions. They are used in a large number of financial procedures,[11] help manage risk and volatility (among other things),[12] and provide incentives for employee productivity and innovation.[13]
^Usmani, Introduction to Islamic Finance, 1998: p. 6
^Farooq, Riba-Interest Equation and Islam, 2005: p. 3–6
^Khan, What Is Wrong with Islamic Economics?, 2013: p. 216–226
^"Islamic forex traders modify their approach to conform to Shariah law". Financial Islam - Islamic Finance. 21 March 2012. Retrieved 19 October 2017.
^Visser, Hans (2013). Islamic Finance: Principles and Practice (Second ed.). Edward Elgar Publishing. p. 148. Retrieved 19 October 2017.
^"Gharar". Investopedia. Retrieved 19 October 2017.
^Leibenluft, Jacob (15 October 2008). "$596 Trillion!". slate.com. Retrieved 8 August 2017.
^Cite error: The named reference Sole-2012-4 was invoked but never defined (see the help page).
^Usmani, Muhammad Taqi (15 February 2015). "Permissibility of Certain Financial Contracts". muftitaqiusmani.com. Retrieved 19 October 2017.
^Kettell, Brian (2010). "4. Derivatives and Islamic Finance". Frequently Asked Questions in Islamic Finance. John Wiley & Sons. ISBN 9780470711897. Retrieved 19 October 2017.
^Cite error: The named reference venardos 2005 was invoked but never defined (see the help page).
^Cite error: The named reference Y-Sing was invoked but never defined (see the help page).
^Cite error: The named reference Jobst-5-2008 was invoked but never defined (see the help page).
Cite error: There are <ref group=Note> tags on this page, but the references will not show without a {{reflist|group=Note}} template (see the help page).
and 25 Related for: Sharia and securities trading information
Thomson Reuters Practical Law). Margin trading, day trading, options, and futures are considered prohibited by sharia by the "majority of Islamic scholars"...
Islamic Investment and Finance website. Maisir Shariaandsecuritiestrading "Glossary of Financial Terms". Institute of Islamic Banking and Insurance. Archived...
(OJK) in January 2012, and at the end of 2012, the Securities Investor Protection Fund(SIPF), andSharia Principles andShariaTrading Mechanisms were also...
Nairobi Securities Exchange Limited. The change reflected the NSE's strategic plan to become a full service securities exchange supporting trading, clearing...
points". Islamic banking and finance Muamalat Murabaha Islamic finance products, services and contracts Shariaandsecuritiestrading Riba The money originally...
Islamic banking and finance Profit and loss sharing Islamic finance products, services and contracts Shariaandsecuritiestrading Muamalat FINCA Afghanistan...
Malacca Securities Sdn Bhd is a stockbroking company. The company is supervised under Bursa Malaysia andSecurities Commission Malaysia. The company started...
page lists the rulings and applications of the various topics in Sharia law. In Islam, purification has a spiritual dimension and a physical one. Muslims...
Bank OCBC NISP Tbk (formerly Bank NISP), trading as OCBC Indonesia, is an Indonesian publicly listed banking and financial services company headquartered...
"sharia compliant" bonds. Sukuk are defined by the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) as "securities of...
based on Sharia, Islamic law derived from the Quran and the Sunnah (the traditions) of the Islamic prophet Muhammad. The sources of Sharia also include...
Malaysia. The stapled securities were re-listed on the Main Market of Bursa Malaysia Securities Berhad in May 2013. The REIT – which is sharia-compliant – is...
of Sharia law, which adopts a fundamentalist and literal interpretation of the Quran. Any contract that is not specifically prohibited under Sharia law...
possession of the remaining cement and sold it for an estimated $3.21 million. SIX Swiss Exchange trading suspended trading for Holcim shares before the news...
Aidids death in 1996, due to his opposition to sharia courts. Ahmed Nuur Ali Jima’ale, CEO of Al-Barakat and a member of the Duduble, took the initiative...
United Arab Emirates is based on civil law, andSharia law in the personal status matters of Muslims and blood money compensation. Personal status matters...
law has influenced secular matters and is, as of the 21st century, still in use in some religious communities. Sharia law based on Islamic principles is...
(Islamic Financial Instruments) Tehran Securities Exchange Technology Management Company (TSETMC) (in Persian) Securitiesand Exchange Brokers Association - Self-regulatory...
obligation under sharia to protect the individual's life, property, as well as freedom of religion, in exchange for loyalty to the state and payment of the...
This is a list of companies listed andtraded on the Nairobi Securities Exchange. The original compilation of the list was done on 31 December 2015. (FISMS)...
Indian-American author, lawyer and professor, prominent in the fields of International trade law, Islamic Law (Sharia), and law and literature. He is a professor...
(Somali: Midowga Maxkamadaha Islaamiga) was a legal and political organization founded by Mogadishu-based Sharia courts during the early 2000s to combat the lawlessness...
Court of Tax Appeals and the Sandiganbayan, which are considered equivalent to the Court of Appeals. In some parts of the country, Sharia courts have been...
Global Information
