Sharia business: Muslims in Russia wete banned to make some transactions with shares

The Council of Ulema of the Spiritual Administration of Muslims (DOOM) of Russia has banned Muslims from conducting a number of transactions with stocks and futures.

- transactions with shares of companies created for activities prohibited by Sharia (alcohol production, pig farming, gambling industry, etc.) are prohibited.;

- it is also necessary to monitor whether the company is interested in placing or attracting funds at usurious interest rates;

- it is prohibited to sell shares that the seller does not own (short sale, short sale);

- it is prohibited to purchase shares through a usurious loan from a broker (leverage).

The ban also includes the purchase of shares through a usurious loan from a broker and the provision of shares of the company on loan and lease.

The head of the competence center in the field of halal products and services of Roskachestvo, Marat Nizamov, commented on this event: "It is recommended to use special mobile applications developed in Russia to select acceptable investments that meet the ethical standards of Islam.

Such applications use the adapted AAOIFI standard (Commission for Accounting and Auditing of Islamic companies) taking into account the development of the Russian economy, and the methodology for their assessment has been developed and approved at the Russian Islamic Institute. They use filters for investing in "halal stocks" to trade on the securities market. Investing in acceptable shares with an annual zakat payment will bring positive changes in the Muslim community."It is also reported that religious shareholders are also obliged to pay zakat — the annual tax of Muslims in favor of the needy — from a security when they reach the minimum income from which they can pay tax.