National Shari'a Board - Indonesian Council of Ulama Fatwa No. 40 of 2003 on Capital Market and General Guidelines on the Application of Shari'a Principles in the Capital Market Sphere

This fatwa states that capital market, as well as all mechanisms and activities associated therein, accord with shari'a if they meet shari'a principles. Moreover, a security is deemed to meet shari'a principles if it obtains a Shari'a Compatibility Declaration. It specifies that transactions must not be speculative or manipulative, nor may they contain components that are excessively risky, interest-bearing, immoral or the like.

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