If a halal share (e.g, 100$/Share) turned to be not-hahal, what to do. I got two different views on two platforms:
As per one platform Musti, we need to sell stocks as soon as possible and it would be haram for me to get profit on that stock’s price during next 3 month time (e.g., 200 $/share)
But, another Muslim experts board platform says that I can keep this stock for 3 months and and no need for purification on that stock’s price.
Kindly guide and give your view on that, as it is very confusing.
Kind Regards,
Not a mufti. I have read about a 90 grace period within which you need to sell your position. I would assume same purification rules may apply but someone else may know better in this community.
If a company’s market cap is increasing, it will help bring the Shariah financial ratios of that company within the permissible threshold. The inverse will also be true. A Shariah compliant stock may turn non-compliant if its market cap is falling which leads to it failing one or more Shariah financial ratios.
If a stock you invested in was compliant at the time of investment, but subsequently turns non-compliant, you will have 90 days to exit that stock. After the end of the 90 day period, till the time you sell the stock, ALL gains - capital/trading/dividends need to be fully purified i.e. 100% of such gain from the end of the 90th day till the date of sale needs to be purified.
All gains - capital/trading/dividends from the date the stocks turns non-compliant till the 90th day, or the earlier date of sale of that stock, can be retained as permissible income.
The main issue is, Zoya doesn’t update market capitalization, i.e. a stock is always compliant or not for at least 1 year.
Quick clarification: in order to prevent stocks from fluctuating in and out of compliance on a frequent basis, we update the market cap value every time the company reports earnings. So for US-based companies, the market cap is updated roughly 4 times per year whereas for international companies it may be less frequent. In an upcoming app update, we’ll allow you to customize screening settings to switch between point in time value and 12/24/36 month average market cap.
