Shari’ah Standard of Stock Screening in the Capital Market
March 31st, 2018
By Mohd Ma’Sum Billah, PhD
Any activity be it a trade or manufacturing or service from viewpoint of Halal (legitimate) gain or income generation, should be in total compliance with the integrated Divine principles of Shari’ah (and that is; law, morality and cooperation with utmost care, share and concern with holistic universal character for the common benefit of all humanity by waiving the issue of one’s religion, race, colour, gender, status or nationality). An unfair gain through dishonesty, misappropriation, oppression, illegality and appreciating advantage at the expense of others, is totally opposed and against the concept and spirit of halal (legitimacy). In the capital market of Malaysia under the Shari’ah principles, the screening mechanisms or processing is strictly required to comply to the Shari’ah standard and approved guidelines to make one Halal. In this paper an attempt is made to examine the capital market, its stocks, screening process and other related issues under the Shari’ah principles as adapted in Malaysia.