I am intrested in investing in indian stock market “nifty 50 sharaih@“In this stock market compines are screened based on shariah principle.I want to ask weather there is a concept in islam maxium tolerance limit for intrest in islam and concept called income purification ration which means in order to full complied with shariah law investor are required to purge pro rate protion of intrest income accured of their holding of shares in the company
All perfect praise be to Allah, The Lord of the Worlds. I testify that none is worthy of worship except Allah and that Muhammad is His slave and messenger.
Your question includes two points; the first is the maximum profit margin permitted in trade as per the Sharee’ah, and the second is purifying one’s wealth from any doubtful ill-gotten earnings.
As for the first point, the Islamic Sharee’ah does not fix a maximum limit for profit in trade; it is determined through mutual agreement between the seller and buyer. There is no textual evidence in the Quran or authentic Sunnah that restricts profit to a specific percentage.
As for the second point, a Muslim is not obliged to give out any amount of his wealth as long as he does not know that it includes unlawful earnings. If he knows that it includes an amount of unlawful earnings, he is required to give out that amount from his wealth and the rest of his wealth is lawful for him to use. If he does not know with certainty the exact amount of the unlawful money, he should try to estimate it to the best of his ability and give out an amount of money that he believes would most likely clear his liability. Ibn Al-‘Arabi wrote in his Tafseer, “If he is confused about the exact amount of the unlawful money, he should make an estimate of the money that he believes to be unlawful, and he should err on the side of caution in this regard to remove all doubt and be assured that he has cleared his liability regarding this unlawful money.” [End of quote]
The unlawful amount should be paid to the poor and needy or spent in the public interests of Muslims, like hospitals, roads, schools, etc.
It should be noted that it is impermissible for a Muslim to purchase unlawful shares to begin with, even if he intends to purify his wealth from the unlawful earnings later on. However, if he bought shares and happened to obtain unlawful earnings accidently in the process, it is incumbent on him to get rid of them in the manner explained above.
Allah Knows best.
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