04-10-2007, 07:00 PM
<font color="blue"></font id="blue"><font size="5"></font id="size5"><font face="Century Gothic">My personal opinion is that apart from the financing of the transactions there are other elements of the existing stock exchanges, which needs further investigation, including short selling where the trader sells in advance without owning the security/scrip. Further, I think all the companies to which an Islamic stock Exchange provides the platform for investment must be shariah compliant i.e. their business, financing, the instruments they are offering, all must be shariah compliant. For this purpose, a shariah Board needs to be established. Having a compliant company is only the beginning, as the company has to be monitored for continued compliance. The question then becomes how frequently are companies reviewed for continued compliance. what about margin trading accounts; how will penalty fees against companies and participants be enforced and allotted (administrative and charity)?</font id="Century Gothic">
