Selling short as Ijarāh with Istiḥsān and its ethical implication

• Main Authors: Sifat, Imtiaz Mohammad, Mohamad, Azhar
• Format: Article
• Language: English; English; English
• Published: Brill 2016
• Subjects: HG4501 Stocks, investment, speculation; KBP1 Islamic law.Shariah.Fiqh
• Online Access: http://irep.iium.edu.my/55104/1/Sifat%20and%20Mohamad%20%282016%29%20ALQ.pdf; http://irep.iium.edu.my/55104/7/55104_selling%20short%20as%20ijarah_WOS_Scopus.pdf; http://irep.iium.edu.my/55104/12/55104_Selling%20short%20as%20Ijar%C4%81h%20with%20Isti%E1%B8%A5s%C4%81n%20and%20its%20ethical%20implication_WoS.pdf; http://irep.iium.edu.my/55104/; http://booksandjournals.brillonline.com/content/journals/10.1163/15730255-12341324

For most scholars, the concept of selling short, where financial assets are sold without prior possession or ownership, transgresses Islamic principles. However, the Sharīʿah Advisory Council of the Securities Commission of Malaysia (SAC) went against the majority by permitting short selling in 2006...