What are all the conditions of Investing in stocks?

Investment Questions and Chats
#1

I am following Hanafi Madhab and conditions mentioned on websites and videos are only four. I will link them here:

So, I think many companies(stocks) are non-compliant due to other factors like debt:assets etc.

What are all those conditions?

Is there any Hanafi Scholar who can tell why they are not accounted, as i have invested without any other conditions?

#2

Wa alaykum salaam,

After ensuring that the core business activity is acceptable from a Shariah perspective, a financial screening is performed. The financial screening consists of ratios to determine the level of excessive and intolerable exposure to interest in the conventional financial markets. The AAOIFI Shariah screening criteria consists of the following ratios:

(1) Interest-based debt: The collective amount raised as a loan on interest, whether long-term or short-term debt does not exceed 30% of the market capitalization of the corporation.

(2) Interest-based deposit: The total amount of interest taking deposits, whether short, medium or long term, does not exceed 30% of the market capitalization of total equity.

(3) Earning from impermissible activities: The amount of income generated from prohibited component does not exceed 5% of the total income of the corporation, irrespective of the income being generated by undertaking a prohibited activity, by ownership of prohibited assets or in some other way.

#3

Assalamualaikum warahmatullahi wabarakatuh @Mufti_Faraz_Adam

Thanks for the reply.

Please address some of my further queries :-

  1. What about the earning(profit) i made as i was just looking for the conditions mentioned in those links i shared above?

  2. Are these conditions followed by all madhabs, as i didn’t see any Hanafi fiqh website mentioning those conditions, and i think based on this i can keep the profits as i didn’t knew of them and be considerate for future investments?

JazakAllahu Khayran