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The question

Is Dr. Muhammad Al-Osaimi's list of pure shares permissible, with a purification ratio for each share, and is it obligatory to extract the purification ratio from them, and on what basis?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

It is permissible to trade in pure shares and forbidden to trade in prohibited and mixed shares. A pure share is a share of a company with permissible activity that does not engage in usury. A prohibited share, on the other hand, is a share of a company with prohibited activity. As for a mixed share, it is a share of a company with permissible activity, but it borrows or deposits with usury.

Purification of Pure Shares: Pure shares may become tainted with some unlawful elements through certain transactions, such as a small percentage of speculation in mixed shares, or commercial insurance returns, and commercial hedging contract returns. These doubtful amounts must be purified. If it is not possible to ascertain the actual purification amount, it can be estimated at 5% of the market return rate for portfolios investing in mixed company shares, and 3% of undisclosed revenues in company financial statements.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16503
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy