Question:
I am not too convinced with the present day islamic finance which is applied in the conventional banks as well as those with Muslim names.
Similar is the issue with stock markets. One point that i have totally failed to understand is the concept of permissibility in investing in those companies which deal in interest on condition their interest earnings/dealings are below 33%.
Theoretically by me buying shares in a company I become a co owner. It therefore means being a co owner in a company dealing in interest is permissible as long as it is registered as a public limited company.
But then why would interest not be permissible for me as a sole trader. If i have a shop which I run by myself then why can’t i take loans and invest in interest based instruments and make sure it doesn’t exceed 33%.
I am genuinely confused and have failed to understand the rationale in this 33% concept. Buying shares in a public limited company is permissible even if it deals in interest as long as it is till 33%. But by myself I can’t be a sole trader doing the same.
Please explain to me as i am really confused.