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sharia

Shafi'i Fiqh

Ruling of Sharia on Changing Contract`s Formulation

Is it permissible to change the form of portfolio management from profit-sharing Mudarbah contract into a contract of agency investment in return for 1.5 % of capital per year without the consent of the client? Is it permissible to take a known fee as a percentage of capital against managing the portfolio`s funds through agency investment contract? 

Shafi'i Fiqh

Islamic Ruling on Covering Costs of Umrah Trips from Company`s “Fines Fund”

The company where we work established what it called "fines fund" where certain amounts are deducted from staff salaries as penalty for violating the company`s by-laws, such as absence from work, coming late and safety abuses. The money is used for the social welfare of the staff members in line with what the committee in charge of the Fund sees fit. Some members suggested initiating Umrah trips, but some argued that the money in the Fund could have been taken unjustly since the fee of three days is deducted against absence for one day and some employees are fined for violating safety measures while others aren’t. In light of this, what is the ruling of Sharia on initiating these trips from the money deposited in this Fund?

Shafi'i Fiqh

Islamic Ruling on Charging Money for Issuing Letters of Credit

Could you clarify the Sharia basis on which Islamic banks charge a percentage, as commission, from the value of the letters of credit issued upon request of client to import goods and raw materials. The bank issues the letters of credit (LC) in favor of the exporter and covers their value based on the agreed conditions, including the bill of lading that proves cargo shipment, then requests client to pay the value of the LC?