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What is the best way to invest in the stock market?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
Invest in share market is how? jaez or najaez?


(Fatwa: 964/886=L/1429)

It is allowed to buy and purchase shares under the conditions below:

(1) The company should not get involved in unlawful things, like it should be not interest-based bank, insurance company, wine company etc.

(2)  All the assets and possessions of the company should not be in cash but it should have some frozen assets for example building, land and the company is in existence and these things are known surely. Otherwise, selling with difference will be interest.

(3) If, after having become a member of the company, it is known that the company is involved in any sort of interest transactions, then one raise  objection against it in its meetings.

(4) When the profit is divided, the part of the profit gained form the interest dealings should be given to the poor without intent of getting reward.

(5) The purpose of dealing in shares should be to achieve partnership in the business, it should not be to earn profit only by equalizing profit and harm wherein the shares are neither possessed nor the possession is meant, since it is a form of gambling (Satta) which is unlawful.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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