Zakir Naik – Having Discovered Only Lately that the Shares I Bought from a Company are Haraam what shall i do

Assalamualaikum.

Waalaikumussalam.

My name is Sadiq.

I am a student from Kolkata, India.

My question is, I invested money on a

halal company's shares three months earlier, but recently

I checked that the company has become haram

because interest bearing debt to total assets has

exceeded to 43.75% due to which

the stock has become haram, but previously the

stock was halal.

What should I do?

The question posed by brother Sadiq that he

invested in halal shares and maybe he has

knowledge about how to invest in stock which

are sharia compliant.

And when he invested, and when he bought

these shares three months earlier, these shares were

halal.

But now when he checked up, he came

to know that the interest bearing ratio or

the debt ratio has increased to more than

43.75%. So now it's become haram.

What should he do?

First, if you have heard my answers on

how do you come to know whether the

stocks you are purchasing of a particular company

is sharia compliant or not, and there are

five categories.

The first is that the core activity should

be halal and then you should see to

it that they are not involved in any

interest bearing activity as a company which is

giving loan on interest, etc.

Then the cash and the debt ratio should

be less and any haram activity should be

less than 5%.

These were discussed in detail.

So the brother has checked and he realized

after three months that debt ratio has increased

to more than 43% and that makes

the share haram.

What should he do?

He should immediately sell the share.

Sell the share and invest in a halal

share.

But while investing, see to it that there

are two types of sharia compliant.

One is that the company itself has a

sharia board and it is sharia compliant by

nature.

By nature means it has a board.

So investing in sharia compliant shares which has

a sharia board is the best.

And Malaysia, where I live, there are many

sharia compliant shares and it is there in

the stock itself.

It mentions sharia compliant, halal, okay, not sharia

compliant.

In India, there are very few which are

basically which have a sharia board, etc., hardly

any.

But even if it doesn't have a sharia

board, it can be sharia compliant by nature

because it may not be a debt company,

it may not be taking loans, the core

activity may not be haram, it may be

dealing with maybe pharmaceuticals.

So by nature it can be.

So some companies, by nature, if they don't

have a sharia board also, it can remain

halal.

But some company can keep on changing like

the one you said.

Invest in a company and that company has

got involved into debt, you know, so in

this you have to keep on monitoring.

But the best is to invest in shares

which has, invest in companies which has a

sharia board.

The second best would be, by nature it

is sharia compliant.

You know that the company will not involve

in taking loans from the bank, and by

nature it is such a company, it is

a strong company, it's a big company, and

it's involved in products which are halal.

And then the third would be the company

which may keep on changing.

So it is preferable to avoid investing in

companies which can change because you have to

keep on monitoring, and then if it's haram

you'll have to sell it.

So why let you invest even for a

small period, whether it be a month or

whether it be a week.

So best is to involve in companies which

have a sharia board, as I mentioned.

Second best is by nature if it's sharia

compliant.

But now the solution for this, see to

it that you sell it immediately, if you

want to continue investing in sharia compliant shares,

see to it that you invest in a

company which has a sharia board, or by

nature it is sharia compliant.

Hope that answers the question.