Investing one's money in primary shares in the name of different people
Fatwa No: 310189

Question

1) I have some investment in a share market. The present capital is worth tK. 1.5 Million (approx). I do not buy bank, leasing, or insurance company shares, but I once did apply on primary shares (initial public offering) of a bank, insurance & leasing company. I do not know whether any amount derived from selling such shares has been included with my present capital or not. If included, then I would not know the exact amount. What should I do now? 2) I do apply on primary shares (initial public offering). I have around 80 accounts( in the name of different people) to apply. As the signature is not so important on the application form, I put their signature (by forging it) on the application form to reduce confusion. Is that haram?

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

There are two conditions for the permissibility of purchasing shares or subscribing in them:

First condition: The transactions and practices of the company from which you buy shares and subscribe in it must be permissible.

Second condition: The company should not put part of the shareholders’ money in interest-based banks to take interests and add them to shareholders' profits.

Accordingly, these two conditions must be taken into account. For more benefit, please refer to fataawa 85042 and 92713.

As regards your previous dealings: given that you do not know of anything forbidden entering into your money, then you are not obliged to get rid of any of it, but if you doubt about it and want to be on the safe side, then you may get rid of the estimated amount about which you have doubts and give it to the poor and needy. For more benefit, please refer to fatwa 87149.

Finally, we should point out the issue of signing on behalf of someone else; if this is with his permission and the party with whom you deal knows this, and there is no cheating in it, then there is nothing wrong in it. But if there is any cheating or deceit in doing so, then it is forbidden, as the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said, “Whoever cheats us is not one of us.” [Muslim]

Indeed, there are many means of lawful earning and lawful investment for anyone who seeks to find them, and no soul will die until it wholly consumes its provision and reaches its appointed time [for death], as Allaah says (what means): {And whoever fears Allaah - He will make for him a way out. And will provide for him from where he does not expect.} [Quran 65: 2-3]

Allaah knows best.

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