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VOL. 8, ISSUE 6 (2022)
Merging share capital with investment account funds in islamic law: A scrutiny
Authors
Muhammad Abdurrahman Sadique, Ahmad Ibrahim Kulliyyah, Mohammed Waseem
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.
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Pages:141-144
How to cite this article:
Muhammad Abdurrahman Sadique, Ahmad Ibrahim Kulliyyah, Mohammed Waseem "Merging share capital with investment account funds in islamic law: A scrutiny". International Journal of Humanities and Social Science Research, Vol 8, Issue 6, 2022, Pages 141-144
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