Is Fraters Islamic equity shariah compliant

The Darul Ifta is reviewing its position regarding investing in shares which is also governed by the concept of limited liability. Shariah has placed a lot of emphasis on the fulfilling the rights of creditors and does not limit such rights to the assets of a company. If the debt of a company exceeds the assets of a company, the shareholder will be responsible to pay the debt from his personal assets. To restrict liabilities of a company to its assets would be depriving the creditors of their full rights.

This angle of investing is shares are of concern to us and we are busy researching the issue. Until then, our advice is to exercise precaution and not to invest in any shares investing company.

And Allah Knows Best

Mufti Ebrahim Desai