What is the ruling on a sale and repurchase agreement (repo) if the underlying asset is pure company shares or goods and commodities, and not interest-bearing bonds?

The sale and repurchase agreement (repo) is not permissible in Islamic law, even if the sold items are permissible shares, for several reasons:

1. Contradiction to the Contractual Purpose: The agreement that the seller will repurchase the sold item at a specified price contradicts the essence of a sale and renders the contract void. 2. Suspicion of Two Sales in One: Stipulating another contract (like a second sale) within the first contract invalidates the sale. This falls under the prohibition of "two sales in one." 3. Suspicion of Usury (Riba): Agreeing to sell shares and then repurchase them at a higher price the next day, with the difference being called "interest" and calculated as a percentage, resembles lending money with an increment, which is a form of usury (riba). It also falls under the category of Bay' al-'Inah.