admin, Author at Shariah Compliant Advisory Services & Consultant: Usmani & Co. Pvt. Ltd.

22 Jun 23

For Murabaha transactions to be valid following conditions must be fulfilled

Subject matter must available for Sale. Seller should have both ownership & possession, (either physical or constructive). It should be an immediate sale, independent to any chance. Anything having considerable worth can be sold. Subject matter should be Shariah compliant. All the details & features of the subject matter should be specified to the buyer. […]

03 Dec 22

Importance of Islamic Capital Market – Pakistan Stock Exchange – Part 4

These are some of the reservations that a Muslim investor needs to be observant of in the stock market and the adherence to such criteria is of utmost importance. A recent report by Pakistan Stock Exchange as of June 30th, 2021, of KMI-30 and KMI – All Share Index to know the shariah compliant stocks […]

29 Oct 22

Importance of Islamic Capital Market – Pakistan Stock Exchange – Part 3

There are certain other related issues: Type of Trade 1- Right share issue: A company usually issues right shares to the existing shareholders in proportion to their existing shareholding in the company so as not to dilute their investment proportion. From shariah perspective if the company is shariah complaint it can issue right shares which […]

05 Sep 22

Importance of Islamic Capital Market – Pakistan Stock Exchange – Part 2

Within Pakistan Stock Exchange there are 3 to 4 other segments through which an investor can invest in any stock through Pakistan Stock Exchange. Besides KMI 30 and KMI All Share index screening there are other aspects that needs to be taken care of while managing an investment fund. Ready Market: This is the most […]

30 Jul 22

Importance of Islamic Capital Market – Pakistan Stock Exchange – Part 1

The concept of Islamic finance can be traced back to about 1400 years, but its recent history can be tracked back to the 1970s, when Islamic banks were founded in Saudi Arabia and United Arab Emirates where basic financing solutions such as savings and financing were provided. These products were ensured that they are Shariah-compliant, […]

16 May 22

Shariah Advisors addressed at the 20th AAOIFI Annual Shariah Boards Conference at Bahrain

Dr Imran Usmani, CEO and president of Usmani and Co. Shariah Advisors addressed at the 20th AAOIFI Annual Shariah Boards Conference at Bahrain . He introduced the concept of Running Musharakah that has been a successful product in the banks of pakistan. Running Musharakah facility gives similar effects of overdraft product on the customers’ balance […]

14 Apr 22

A current account in a conventional bank that is providing free services

A current account in a conventional bank that is providing free services i.e. free cheque book, free order facility and others is considered as engaging in Riba as one cannot take favors even in kind. Moreover, even keeping a current account in a conventional bank means that one is supporting and strengthening the interest based […]

06 Apr 22

Many Shariah scholars proposed criteria for determining whether a company or stock is Shariah-compliant.

Many Shariah scholars proposed criteria for determining whether a company or stock is Shariah-compliant. As a result, the attention was shifted to businesses that engaged in both allowed and disallowed activity according to Shariah. The major goal of the proposed criteria was to include a company in the list of shariah-compliant companies that had an […]

31 Mar 22

Is Investing in Shares/Stocks allowed or forbidden in Shariah?

A common question that, many of us ask is whether it is allowed to invest in stocks or /shares. As we go deeper into that thought other questions also come up such as, What makes a stock halal? Which stocks are particularly Halal and whether we should invest in those? What does stock screening mean? […]

And Allah has permitted trade and forbidden Riba

22 Dec 21

Part 1: Prohibition of Riba in Islam | Islamic Finance Series

The financial services sector is the most important sector of the modern economy. The financial services sector provides opportunities for households to choose the best combination of investments in terms of return on investment, duration and security. It also provides opportunities for businesses and governments to fund their activities by raising surplus funds. The concept […]