Essay On Sharia

PART 1 (INTRODUCTION)
1. Discuss how and why companies be regarded as Sharia and non-Sharia compliant in Malaysia.
There are two type of company that compliant securities in Malaysia, that is Sharia and non-Sharia. Sharia compliant securities is a securities that has normal shares and transferable membership right of a Bursa Malaysia listed company, which have been sorted as Sharia allowed for investment based on Sharia principle. It is comprise of its essential business and investment activities. There are few standard of Sharia, for example, the absent of interest based transaction (riba), the shirking of financial activities including oppression (gharar) and abuse (zulm). That is the reason in Sharia standard, it deny the component, for example, riba, gharar, and maysir. It likewise does not allow the business with identified with the activities that get an unlawful salary. However, Sharia compliant securities have dependably been related as halal or legitimate

There are two phases of screening connected by the SAC and SC. The main stage is depends on the information accumulated by the SC. At that point, the SC will concentrate on the exercises of the organization who issues the securities. The organization will be delegated shariah compliant securities as long as the activities do not disregard to the Shariah principal. While the organization will be named shariah non-compliant securities in the event that they are included in budgetary administrations in view of riba and conventional insurance. Other than that, the securities additionally will be named non shariah if the manufacture or offer tobacco based items or related item in business