A bunch of Muslim investors have purchased ordinary shares of the giant Citi Conventional Bank in...

A bunch of Muslim investors have purchased ordinary shares of the giant Citi Conventional Bank in Pakistan on floating but attractive dividend rates through a Musharakah contact of Islamic Finance. Rectify whether this transaction is Shari’ah complaint. If no, discuss the reason.

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It is not a complaint, because the shares that are being purchased are of conventional banks. the conventional banks deals in riba and also gharar is there in conventional banking and they too trade in the commodities which are avoided in the Islamic finance like alcohol, pork, tobacco etc..

ekkarill92 answered 2 years ago

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