Investing in the ETF

Category: 

Inheritance

According to Madhhab: 

Hanafi

Reference: 

1440-038

Question:

With the recent legalization of cannabis production in various countries there have a list of company’s involved in production of cannabis for medicinal and other purposes .

These companies have been listed on stock exchanges . There is exposure to this asset class in South Africa via exchange traded funds (“ETF”).

Would it be permissible from a sharia perspective to invest in such ETF’s.

Shukran

Answer:

Our Darul Ifta does not approve of trading on the stock exchange (even if it involves investing in companies that deal in permissible commodities); hence all the more reason why we have reservations in approving the investment in question as well.

AND ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Mufti Mohammed Desai
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B
Darul Ifta Azaadville