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

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			Assalamualaikum.
		

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			Waalaikumussalam.
		

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			My name is Sadiq.
		

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			I am a student from Kolkata, India.
		

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			My question is, I invested money on a
		

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			halal company's shares three months earlier, but recently
		

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			I checked that the company has become haram
		

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			because interest bearing debt to total assets has
		

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			exceeded to 43.75% due to which
		

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			the stock has become haram, but previously the
		

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			stock was halal.
		

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			What should I do?
		

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			The question posed by brother Sadiq that he
		

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			invested in halal shares and maybe he has
		

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			knowledge about how to invest in stock which
		

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			are sharia compliant.
		

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			And when he invested, and when he bought
		

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			these shares three months earlier, these shares were
		

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			halal.
		

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			But now when he checked up, he came
		

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			to know that the interest bearing ratio or
		

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			the debt ratio has increased to more than
		

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			43.75%. So now it's become haram.
		

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			What should he do?
		

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			First, if you have heard my answers on
		

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			how do you come to know whether the
		

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			stocks you are purchasing of a particular company
		

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			is sharia compliant or not, and there are
		

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			five categories.
		

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			The first is that the core activity should
		

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			be halal and then you should see to
		

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			it that they are not involved in any
		

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			interest bearing activity as a company which is
		

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			giving loan on interest, etc.
		

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			Then the cash and the debt ratio should
		

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			be less and any haram activity should be
		

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			less than 5%.
		

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			These were discussed in detail.
		

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			So the brother has checked and he realized
		

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			after three months that debt ratio has increased
		

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			to more than 43% and that makes
		

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			the share haram.
		

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			What should he do?
		

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			He should immediately sell the share.
		

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			Sell the share and invest in a halal
		

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			share.
		

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			But while investing, see to it that there
		

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			are two types of sharia compliant.
		

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			One is that the company itself has a
		

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			sharia board and it is sharia compliant by
		

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			nature.
		

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			By nature means it has a board.
		

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			So investing in sharia compliant shares which has
		

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			a sharia board is the best.
		

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			And Malaysia, where I live, there are many
		

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			sharia compliant shares and it is there in
		

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			the stock itself.
		

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			It mentions sharia compliant, halal, okay, not sharia
		

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			compliant.
		

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			In India, there are very few which are
		

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			basically which have a sharia board, etc., hardly
		

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			any.
		

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			But even if it doesn't have a sharia
		

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			board, it can be sharia compliant by nature
		

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			because it may not be a debt company,
		

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			it may not be taking loans, the core
		

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			activity may not be haram, it may be
		

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			dealing with maybe pharmaceuticals.
		

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			So by nature it can be.
		

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

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			have a sharia board also, it can remain
		

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			halal.
		

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			But some company can keep on changing like
		

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			the one you said.
		

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			Invest in a company and that company has
		

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			got involved into debt, you know, so in
		

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			this you have to keep on monitoring.
		

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			But the best is to invest in shares
		

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			which has, invest in companies which has a
		

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			sharia board.
		

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			The second best would be, by nature it
		

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			is sharia compliant.
		

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			You know that the company will not involve
		

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			in taking loans from the bank, and by
		

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			nature it is such a company, it is
		

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

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			it's involved in products which are halal.
		

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			And then the third would be the company
		

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			which may keep on changing.
		

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			So it is preferable to avoid investing in
		

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			companies which can change because you have to
		

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			keep on monitoring, and then if it's haram
		

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			you'll have to sell it.
		

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			So why let you invest even for a
		

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			small period, whether it be a month or
		

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			whether it be a week.
		

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			So best is to involve in companies which
		

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			have a sharia board, as I mentioned.
		

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			Second best is by nature if it's sharia
		

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			compliant.
		

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			But now the solution for this, see to
		

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			it that you sell it immediately, if you
		

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			want to continue investing in sharia compliant shares,
		

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			see to it that you invest in a
		

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			company which has a sharia board, or by
		

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			nature it is sharia compliant.
		

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			Hope that answers the question.