Current Legal Issues
- BANKING AND FINANCIAL SERVICE
Some companies could appoint the bank to sell shares for them. The bank acts as an
intermediary to carry out the transaction for a fee agreed between the company and the
(16) Such a transaction with the bank is permissible.
For, in reality, this could be treated as a form of ijarah. In the sense that
the company hires the bank to do the work for them for an agreed fee. It could also be
treated as a form of ji'aala.
In either case, the transaction is in order, and the bank has the right to charge a fee in
return for carrying out such work.
(17) Selling and buying such shares is in order.
Of course, the nature of business of some companies is such that dealing with them is haraam,
such as companies of alcoholic drink or companies dealing with usury. Thus, it is not
permissible to buy their shares or enter into transactions with them.