Course Overview
Course Title: Jurisprudence of Stock Exchanges and Financial Markets
Instructor: Shaykh Hadi Najafi
Academic Year: 2024–2025
Schedule: Saturday to Tuesday, 9:00 AM – 10:00 AM
Location: Mosque of the Sadr Bazaar Seminary, Bazarcheh No St., Chaharbagh-e Paeen St., Grand Bazaar, Isfahan, Iran
Course Link: https://doroos.feqhemoaser.com
About the Course
With the expansion of capital markets and the pivotal role of the stock exchange in modern economics, the clarification of the legal and religious nature of share-based transactions has become an essential necessity within the framework of dynamic Islamic jurisprudence. This course examines the concepts and rulings associated with the stock market. The primary objective is to redefine the nature of a “share” as a financial instrument and to evaluate the compliance of joint-stock companies’ activities with Islamic Sharia principles. In the contemporary world, where a vast portion of small and large-scale capital is organized through joint-stock companies, a precise understanding of the boundaries between permissible (halal) and prohibited (haram) actions is indispensable to prevent the involvement of dubious funds in Muslim livelihoods.
An inferential-analytical methodology with a jurisprudential approach is employed throughout the course. Initially, technical definitions of a “share” and its characteristics—such as uniform value, equal rights for shareholders, limited liability, and marketability—are established to provide a thematic foundation. Subsequently, general jurisprudential rules and the analysis of corporate charters are utilized to evaluate the compliance of economic activities with Sharia standards.
In the introductory sessions, a “share” is defined as a financial document representing a specific portion of a company’s capital. Based on the permissibility of their activities in Islamic jurisprudence, joint-stock companies are categorized into three primary types.
The first category consists of Permissible (Halal) Stock Companies, entities where the capital is lawful and the charter explicitly prohibits engagement in prohibited activities such as usury (riba) or the trade of alcohol and weapons. Investing in and profiting from these sectors—such as oil, agriculture, and mining—is deemed permissible.
The second category includes Prohibited (Haram) or Mixed Companies, which involve capital that is either entirely unlawful or a mixture of lawful and unlawful funds, and which engage in prohibited transactions like usurious deals. Consequently, any investment or profit-sharing in such companies is considered impermissible.
The third category comprises Companies without Sharia Commitment, which possess lawful initial capital but lack an explicit commitment in their charter to avoid prohibited transactions. Due to the potential for generating profit through forbidden activities, investment in these companies is also categorized as non-permissible.
About the Instructor
Hadi Najafi is a contemporary Shia jurist and muhaddith. A descendant of the renowned Sheikh Ja’far Kashif al-Ghita, he is considered a prominent scholar at the Isfahan Seminary. Shaykh Najafi has authored numerous works spanning the fields of jurisprudence, hadith studies, exegesis, and Islamic history. Among his notable contributions are the multi-volume Mawsu’at Ahadith Ahl al-Bayt (Encyclopedia of Ahl al-Bayt Narrations) and Al-Ara’ al-Fiqhiyya (Jurisprudential Opinions).
