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Ahmad bought stock ABC in January 2020. Stock ABC was listed shariah compliant in November 2019,...

Ahmad bought stock ABC in January 2020. Stock ABC was listed shariah compliant in November 2019, however in May 2020 it was classified as Shariah non-compliant securities. As a Muslim, explain what is the consequences towards Ahmad?. Advice Ahmad what he need to do.

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Shariah compliant funds are those investment funds which comply with the Islamic laws. It is governed by the shariah law and fundamental principles of Islamic religion. It prevents the investment of money in such funds which derive income from sale of alcohole, pork products, pornography, gambling etc. The scholars in shariah board advice the investment options.

In this case Mr Ahmed made an investment in a shariah compliant fund in January 2020. It is acceptable as per Islamic law as the fund is shariah compliant. But the fund become shariah non compliant in May 2020. As a Muslim, Mr Ahmed is adviced to withdraw immediately the money invested in this particular fund and all the profits earned from this fund should be used to empower the socially weaker sections. He is not allowed to enjoy the profit earned from such fund and it should be used to help the poor and backward people.

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