Selling Telkom Shares

Question

My parents had invested some of our money when we were younger into Vodacom and Telkom shares. I was told that when the dividends are received annually, I should remove 50% due to interest, and use the remaining 50%.

I now intend on selling the shares to use the money. The share value has gone up since we invested. Can I use the entire amount as it is now valued higher, or do I need to remove a percentage?

Mufti Abdul Kader Fazlani · Accepted Answer

Fundamentally, to procure shares and invest one’s money in such companies where the main business is of a Halaal nature is permissible. However, if the company’s main business is of a Haraam nature such as selling wine, pork, etc., then it will not be permissible.

Furthermore, at times these corporate companies get involved in certain interest-bearing transactions, hence you should try to retrieve information from the company if they are involved in such transactions and are accruing interest. If so, then one should remove that portion of money when one receives the dividend pay-out. If one did not remove the interest amount over the years, then one should calculate the interest amount accumulated over the years, and then remove the entire amount when one sells the shares. The rest of the money will then be permissible to keep.

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