I have purchased shares through National Invest Trust (www.nit.com.pk). As you know that share prices increases and decreases. I have two questions to ask:
1- NIT give us DIVIDEND (http://en.wikipedia.org/wiki/Dividend) after one year depending on profit of company. As per agreement they are not bound to pay DIVIDEND. If no profit by company then I will not get any thing. Is this DIVIDEND and shares invest is HALAL?
2- I also fixed 5 lakh in one bank for 3 years since April 2006. Is profit halal and if not what I can do for the profit that I got from bank?
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
Shares are not a permissible form of investment. Kindly refer to the following link for a detailed article on the impermissibility of shares.
Shar’ii stance on Shares and Stocks
In regards to the bank investment, it will not be permissible to keep the profit as banks pay interest. You will only be entitled to keep your initial investment and all the earned interest will have to be distributed to the poor and needy without making the intention of being rewarded. The same will apply to the proceeds from the dividends of the shares.
And Allah knows best
Wassalam
Ml. Yusuf bin Yaqub,
Student Darul Iftaa
Concurred by:
Ml. Ehzaz Ajmeri,
Student Darul Iftaa
Darul Iftaa, Madrassah In’aamiyyah