Selling short as Ijarāh with Istiḥsān and its ethical implication

For most scholars, the concept of selling short, where financial assets are sold without prior possession or ownership, transgresses Islamic principles. However, the Sharīʿah Advisory Council of the Securities Commission of Malaysia (SAC) went against the majority by permitting short selling in 2006...

Full description

Bibliographic Details
Main Authors:	Sifat, Imtiaz Mohammad, Mohamad, Azhar
Format:	Article
Language:	English English English
Published:	Brill 2016
Subjects:	HG4501 Stocks, investment, speculation KBP1 Islamic law.Shariah.Fiqh
Online Access:	http://irep.iium.edu.my/55104/ http://irep.iium.edu.my/55104/ http://irep.iium.edu.my/55104/ http://irep.iium.edu.my/55104/1/Sifat%20and%20Mohamad%20%282016%29%20ALQ.pdf http://irep.iium.edu.my/55104/7/55104_selling%20short%20as%20ijarah_WOS_Scopus.pdf http://irep.iium.edu.my/55104/12/55104_Selling%20short%20as%20Ijar%C4%81h%20with%20Isti%E1%B8%A5s%C4%81n%20and%20its%20ethical%20implication_WoS.pdf

id	iium-55104
recordtype	eprints
spelling	iium-551042017-04-18T01:23:17Z http://irep.iium.edu.my/55104/ Selling short as Ijarāh with Istiḥsān and its ethical implication Sifat, Imtiaz Mohammad Mohamad, Azhar HG4501 Stocks, investment, speculation KBP1 Islamic law.Shariah.Fiqh For most scholars, the concept of selling short, where financial assets are sold without prior possession or ownership, transgresses Islamic principles. However, the Sharīʿah Advisory Council of the Securities Commission of Malaysia (SAC) went against the majority by permitting short selling in 2006. Conventional finance points out that short selling increases liquidity, facilitates price discovery, and enables informational efficiency. Muslim scholars are facing a dilemma: on the one hand, Sharīʿah principles dictate that Islamic capital market transactions and instruments should remain devoid of elements of ambiguity and prohibited characteristics, but on the other hand, the Sharīʿah also demands that the transactions be of social utility to the participating parties. It appears that the SAC allows regulated short selling on the basis of ijārah with istiḥsān. This article strives to highlight the jurisprudential issues regarding short selling and contribute to an Islamic angle on the ethical implications affecting this phenomenon. Brill 2016-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/55104/1/Sifat%20and%20Mohamad%20%282016%29%20ALQ.pdf application/pdf en http://irep.iium.edu.my/55104/7/55104_selling%20short%20as%20ijarah_WOS_Scopus.pdf application/pdf en http://irep.iium.edu.my/55104/12/55104_Selling%20short%20as%20Ijar%C4%81h%20with%20Isti%E1%B8%A5s%C4%81n%20and%20its%20ethical%20implication_WoS.pdf Sifat, Imtiaz Mohammad and Mohamad, Azhar (2016) Selling short as Ijarāh with Istiḥsān and its ethical implication. Arab Law Quarterly, 30 (4). pp. 357-377. ISSN 0268-0556 E-ISSN 1573-0255 http://booksandjournals.brillonline.com/content/journals/10.1163/15730255-12341324 DOI: 10.1163/15730255-12341324
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG4501 Stocks, investment, speculation KBP1 Islamic law.Shariah.Fiqh
spellingShingle	HG4501 Stocks, investment, speculation KBP1 Islamic law.Shariah.Fiqh Sifat, Imtiaz Mohammad Mohamad, Azhar Selling short as Ijarāh with Istiḥsān and its ethical implication
description	For most scholars, the concept of selling short, where financial assets are sold without prior possession or ownership, transgresses Islamic principles. However, the Sharīʿah Advisory Council of the Securities Commission of Malaysia (SAC) went against the majority by permitting short selling in 2006. Conventional finance points out that short selling increases liquidity, facilitates price discovery, and enables informational efficiency. Muslim scholars are facing a dilemma: on the one hand, Sharīʿah principles dictate that Islamic capital market transactions and instruments should remain devoid of elements of ambiguity and prohibited characteristics, but on the other hand, the Sharīʿah also demands that the transactions be of social utility to the participating parties. It appears that the SAC allows regulated short selling on the basis of ijārah with istiḥsān. This article strives to highlight the jurisprudential issues regarding short selling and contribute to an Islamic angle on the ethical implications affecting this phenomenon.
format	Article
author	Sifat, Imtiaz Mohammad Mohamad, Azhar
author_facet	Sifat, Imtiaz Mohammad Mohamad, Azhar
author_sort	Sifat, Imtiaz Mohammad
title	Selling short as Ijarāh with Istiḥsān and its ethical implication
title_short	Selling short as Ijarāh with Istiḥsān and its ethical implication
title_full	Selling short as Ijarāh with Istiḥsān and its ethical implication
title_fullStr	Selling short as Ijarāh with Istiḥsān and its ethical implication
title_full_unstemmed	Selling short as Ijarāh with Istiḥsān and its ethical implication
title_sort	selling short as ijarāh with istiḥsān and its ethical implication
publisher	Brill
publishDate	2016
url	http://irep.iium.edu.my/55104/ http://irep.iium.edu.my/55104/ http://irep.iium.edu.my/55104/ http://irep.iium.edu.my/55104/1/Sifat%20and%20Mohamad%20%282016%29%20ALQ.pdf http://irep.iium.edu.my/55104/7/55104_selling%20short%20as%20ijarah_WOS_Scopus.pdf http://irep.iium.edu.my/55104/12/55104_Selling%20short%20as%20Ijar%C4%81h%20with%20Isti%E1%B8%A5s%C4%81n%20and%20its%20ethical%20implication_WoS.pdf
first_indexed	2023-09-18T21:17:55Z
last_indexed	2023-09-18T21:17:55Z
_version_	1777411686470254592

Selling short as Ijarāh with Istiḥsān and its ethical implication

Similar Items