Merging share capital with investment account funds in Islamic law: a scrutiny

Sadique, Muhammad Abdurrahman and Waseem, Mohammed (2022) Merging share capital with investment account funds in Islamic law: a scrutiny. International Journal of Humanities and Social Science Research, 8 (6). pp. 141-144. ISSN 2455-2070

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Abstract

Where several parties invest with a single fund manager, such investment should take place on a single occasion, so that the tenure of investment could commence with regard to all deposits at the same time. Where the fund manager accepts investments from different individuals through individual contracts, the majority of schools of Islamic law require that the business of each capital be managed separately. The restriction is due to fundamental anomalies that may result from mixing different capitals. However, jurists of the Hanafi school appear to have allowed the fund manager to mix funds of different investors together with the permission of the investors. This could indicate permission for mixing funds invested at different stages when overall permission had been obtained. Similarly, mixing investment funds with funds of the fund manager could be valid according to the majority of schools with the express permission of investors. Thus the Hanafi position appears to uphold the validity of mixing funds belonging to different investors who had invested at varying points of time, as practised in investment accounts.

Item Type:	Article (Journal)
Uncontrolled Keywords:	mudarabah, capital, investment accounts, multiple investors
Subjects:	BPK Islamic law. Shari'ah. Fiqh > BPK36 Islamic law (General) H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. > KBP639 Muʻāmalāt
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User:	Dr Muhammad Abdurrahman Sadique
Date Deposited:	03 Jan 2023 10:44
Last Modified:	03 Jan 2023 10:45
URI:	http://irep.iium.edu.my/id/eprint/102560

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