Assalamu alaikum,
Can I sell shares that I own, and immediately use the proceeds to purchase shares in another company? Or do I have to wait until settlement before I can use those funds?
Wa alaykum salaam,
You should wait until settlement as many scholars view the selling of shares prior to settlement as impermissible.
Allah knows best
Assalamu Alaikum @Mufti_Faraz_Adam
I just wanted to confirm if we need to wait for settlement in both directions (buying and selling)? I understand that if we buy shares, we should wait until settlement before selling them. But now let’s say the shares have already settled, and a week later I sell them. Do I also have to wait for my sale transaction to settle before I can re-use the funds generated from it, or can I use the cash immediately?
JazakAllah khair
1 Like
AssalamuAlaikum, if i was to buy a shariah compliant stock, can i use leverage on it? Like using leverage when trading?
Wa alaykum salaam,
Most leverage forms in the market are not Shariah compliant. If you come across anything advertised as Shariah compliant, you may share this for our review.
Allah knows best
As Salam alaikum Mufti Faraz,
I have the same query as @Zaytoon31 regarding using the proceeds of settled shares immediately after selling them. Understand the shariah rationality of not selling what u do not own but in this case, the shares which I own have been sold on the market and the money can be immediately transferred to your bank account, hence could be used for any purpose.
Hence the question of can the money be used immediately after selling of T+2 settled shares?
With Regards
Ahmed Haq
Could you please confirm if the money can be used immediately after selling of T+2 settled shares?
As cost of opportunity / window of opportunity diminishes if u have to wait for T+2 days.
Of course, if it is not shariah compliant than it is Qadr of Allah but wanted to be doubly sure.
Wa alaykum salaam,
The issue with the T+2 settlement is specific when you can on sell shares after you purchase. If you received funds from the sale of shares, you can use those funds immediately as long as there is no other Shariah risk.
1 Like
Jazakallah for clarifying
Salaam.
When I sell a share, it takes T+2/T+3 for the cash to settle. However, my broker allows me to use the ‘unsettled cash’ immediately to buy another share, even before settlement of the first trade. Are there any problems with doing this from a sharia perspective?
Jzk
2 Likes