Document Details

Document Type : Article In Journal 
Document Title :
Fiqh Issues in Short Selling as Implemented in the Islamic Capital Market in Malaysia
قضايا فقهية فيما يتعلق "بالبيع القصير" كما هو مطبق في سوق المال الإسلامي بماليزيا
 
Subject : Fiqh Issues in Short Selling as Implemented in the Islamic Capital Market in Malaysia 
Document Language : English 
Abstract : Islamic capital market represents an assertion of Shari`ah principles in the capital market transactions where the market should be free from any elements or activities that are prohibited in Islam. The strict adherence to Shari`ah principles also implies that all financial instruments used by transacting parties in the capital market need to be Islamic. One of the most popular and commonly used financial instruments in conventional capital market is short selling. Many finance literature assert that short-selling provides liquidity, drives down overpriced stocks and generally increases efficiency of the markets. In general, the conventional short sale is selling a stock which investor does not actually own; a transaction which would clearly violate the general Islamic rule of ‘do not sell what you do not own’. Nevertheless, the Shari`ah Advisory Council (SAC) of Malaysian Securities Commission has recently legalized the short selling instrument to be used in Islamic Capital Market in Malaysia. This paper, therefore aims to study fiqh issues surrounding the short selling instrument. Three main issues are specifically highlighted and discussed, namely the issue of bay`ma`dum (selling what the seller does not own), the eligibility of stock as object of a loan contract and benefiting from loan contract. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 21 
Issue Number : 2 
Publishing Year : 1429 AH
2008 AD 
Article Type : Discussion Paper 
Added Date : Saturday, July 3, 2010 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
أشرف وجدي دسوقيDusuki, Asyraf WajdiResearcherDoctorateasyraf.w@iiu.edu.my
عبدالعظيم أبو زيدAbozaid, Abdelazeem ResearcherDoctorateabozaid@iiu.edu.my

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