Is it permissible to trust the standard of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for determining halal stocks?

It is permissible to deal in pure shares, provided that the company's activities are permissible and it does not engage in usury. As for mixed shares, which are shares of companies that deal with usury in addition to their permissible activity, it is not permissible to deal with them according to the majority of jurists.

A resolution has been issued by the Islamic Fiqh Academy affiliated with the Organization of Islamic Cooperation, and another by the Islamic Fiqh Council affiliated with the Muslim World League, prohibiting investment in companies whose primary purpose is unlawful or that deal with usury, even if their primary activity is permissible.

However, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) permits dealing in mixed shares under specific conditions, such as the company not stipulating dealing with usury in its articles of association, the total amount borrowed or deposited with interest not exceeding 30% of the market value of the shares, and the revenue generated from unlawful sources not exceeding 5% of the total revenue, with the obligation to purify the unlawful revenue.

Therefore, before trading in any share, it is necessary to ensure that it is pure. If the Accounting Organization indicates the necessity of purification, this shows that the share is mixed, and it is not permissible to deal with it according to the preponderant opinion.