I have been reading various articles on the difference of opinion regarding ownership of a share before settlement.
I’ve seen on previous Q and A’s the AAOIFI is used as a credible source of reference. When reading the AAOIFI Sharia Standards regarding shares it says;
"3/7 It is permissible to the buyer of a share to undertake transaction in it by way of sale to another and the like after the completion of the formalities of the sale and the transfer of liability to him even though the final settlement in his favour has not been made. "
From my limited understanding that seems to suggest a person that buys a share can sell it after they’ve received the liability/risks of owning the company even before the settlement date.
I’ve read what happens if you buy a share and the company goes bust before settlement and it mentions on an article published by Freetrade who the liability is with;
" If you sell stock before administration, but your order is due to settle afterwards.
The contract still holds and you’ll still get your money."
"If you buy stock before administration, but your order is due to settle afterwards.
If you bought stock before the company suspends trading, the idea’s the same. The contract still holds and you’ll still get your shares.
Your money has been paid, you’ll receive the stock (but won’t be able to sell it) and you’ll get any value that comes to shareholders out of the administration process."
So in summary that suggests to me that trading before settlement would be halal based on the AAOIFI’s statement.
I was wondering your thoughts on the AAOIFI statement @Mufti_Faraz_Adam as I read you was seeking further clarification in a reply made in 2020 on a Q&A.
AAOIFI - http://aaoifi.com/shariaa-standards/?lang=en
Freetrade - https://freetrade.io/learn/what-happens-when-a-stock-goes-bankrupt-or-delists#:~:text=from%20the%20app.-,If%20you%20buy%20stock%20before%20administration%2C%20but%20your,is%20due%20to%20settle%20afterwards.&text=Your%20money%20has%20been%20paid,out%20of%20the%20administration%20process.