What is the ruling on Tawarruq with shares as practiced by Al-Rajhi Bank?

Tawarruq is of two types: The first is "genuine" (haqiqi), which is when a person buys a commodity for a deferred price, then sells it—to someone other than the one from whom he bought it—for cash at a lower price. This transaction is permissible according to the majority of scholars. The second is "organized banking tawarruq" (masrafi munazzam), the form of which is that the bank buys a commodity, then sells it to the customer in installments, without either the bank or the customer taking possession of the commodity, and the customer authorizes the bank to sell it at a lower price. This form is prohibited. The "Watani" tawarruq program for shares at Al-Rajhi falls under the category of the permissible genuine tawarruq, but it is stipulated that it be limited to purchasing pure (permissible) shares.