Blog Archives - Usmani & Co. Pvt. Ltd.

17 Mar 24

Sharia Compliant Investing

Sharia-Compliant Investing: The Crucial Role of Sharia Advisory Services in Islamic Finance In the realm of Islamic finance, Sharia advisory services emerge as the custodians of ethical and faith-driven financial practices. These specialized entities offer a comprehensive approach to ensure that financial institutions operate strictly within the bounds of Islamic law (Sharia). Here’s a detailed […]

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 […]

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? […]

27 Nov 21

Adhering to Medina’s Islamic Values in present day Pakistan

After being in Makkah for 13 years following first revelation, Prophet (ﷺ) migrated to Medina. He instilled in Medina’s economy, Islamic Values with respect to Usury and Interest which Islamic Finance Institutions are adhering to follow till today. Prior to Prophets’ migration, the marketplaces were monopolized by the Jews who took heavy interest (sood) from […]

‘Are those who have knowledge and those who have no knowledge alike? Only the men of understanding are mindful.’ (Quran, 39:9) Treasure, they say, is either in the form of precious metals, gems, or other valuable objects. But all these forms of treasure can be stolen and often decreases with time so we cannot really call it a lifetime asset. There is, however, another form of treasure, which cannot be stolen, increases by time, and is a lifetime asset as well. It is, knowledge. It gives you a high return on investment of your time.

08 Nov 21

Knowledge – a roadmap to hunt the treasure

‘Are those who have knowledge and those who have no knowledge alike? Only the men of understanding are mindful.’ (Quran, 39:9) Treasure, they say, is either in the form of precious metals, gems, or other valuable objects. But all these forms of treasure can be stolen and often decreases with time so we cannot really […]