FAQs

Question

I am trading in Shariah Compliant Stock. Why should I do purging?

Answer

Though you are trading or dealing only in Shariah Compliant Stocks, even in the case of such stocks there could be interest earnings of upto 3% of their total income. This is because while judging Shariah compliance status of shares, a tolerance of 3% is permitted as per current norms of TASIS Shariah Board. Equity implies ownership. As a shareholder of the Company, you are liable for such impure income to the extent of your holdings in the Company. Such impure income should be purged out (given away as charity) to make your investment in the company fully Shariah-Compliant.


Allah knows best.