04-11-2007, 04:03 PM
So before establishing an Islamic Stock Exchange, we would have to overhaul our whole corporate culture. And again the utmost problem would be to first define what is a Sharia Compliant Company?
In my personal view, there are following three factors which make a difference between a company being Sharia Compliant or not
1. Dealing in Interest Bearing Instruments (Either deposits with banks on which interest is received or financing from the banks on which interest is paid). Can easily be done away with as a lot of Sharia Compliant Financial Instruments are available in market now a days.
2. Payment of Zakat on the net assets at the end of the year. Need to have a sound system of Zakat. Relying only on Zakat and Ushr Ordinance will not solve the problem
3. Normal Taxation - Many people feel it to be un-islamic.
In my personal view, there are following three factors which make a difference between a company being Sharia Compliant or not
1. Dealing in Interest Bearing Instruments (Either deposits with banks on which interest is received or financing from the banks on which interest is paid). Can easily be done away with as a lot of Sharia Compliant Financial Instruments are available in market now a days.
2. Payment of Zakat on the net assets at the end of the year. Need to have a sound system of Zakat. Relying only on Zakat and Ushr Ordinance will not solve the problem
3. Normal Taxation - Many people feel it to be un-islamic.
