In regards to the Islamic criteria for stock screening;
If one refers to the answer given by Sheikh Taqi Usmani, the numbers are absent from his answer. Further, most answers found on the hanafi q a website also follow this pattern.
In terms of buying shares…the answer given was as follows…
“1. The main business of the company must be Halaal (permissible) according to Shariáh. So, a Muslim cannot invest in a company whose main business is Haraam, like the traditional banks, insurance companies, companies dealing in wines, etc.
2. If the main business is Halaal, but it is involved in borrowing money on Interest or placing its funds in an Interest bearing account a Muslim share-holder should raise his voice against this practice in the annual general meeting of the company.
3. When a Muslim share-holder receives a dividend he must ascertain that proportion of the profit of the company which has accrued on its interest-bearing accounts. Then a similar proportion from his own dividend must be given by him to a person or persons entitled to receive Zakaat.
4. If all the assets of a company are in a liquid form and the company has not yet acquired any fixed assets or any stock for trade, then the sale and purchase of shares must be on their par value only.
If anyone of these conditions is contravened, the investment in a company is not permissible in the Shariah.”
This answer has been consistently given but i have not found an answer which gives the percentages. I.e those found here:
My questions is, have those percentages been added as precautions, to protect the buyer from ‘bad’ companies’, but are not necessarily sharia related?