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Essay

Islamic Banking

Essay specific features

 

Issue:

Book Reports

 

Written by:

Cleora C

 

Date added:

November 12, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 576

 

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5900 times

 

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Essay content:

Five Indian companies, Reliance Industries, Infosys Technologies Wipro, Tata Motors and Satyam Computer Services figure in the Standard & Poor’s BRIC Shariah Index. Under Islamic banking, the conditions for investing in shares are: 1. It is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shariah, such as companies manufacturing, selling or offering liquors, pork haram (prohibited) meat, or involved in gambling, night club activities, pornography, gold trading, advertising and media (with the exception of newspapers)...
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If the main business of the companies is halal (lawful), like automobiles, textiles etc, but they deposit their surplus amounts in an interest-bearing account or borrow money on interest, the shareholder disapprove such dealings. 3. If income from interest-bearing accounts is included in the income of the company, the proportion of such income in the dividend paid to the shareholder must be given to charity, and must not be retained by investor...
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