Establishes universal compliance criteria for publicly traded common stock: prohibition of primary core non-permissible activities, max 30% interest-bearing debt / market cap, max 30% cash & interest-bearing deposits / market cap, max 67% accounts receivable / market cap, and max 5% impure non-operating revenue.
"It is permissible to acquire and trade common shares of companies whose core commercial activity is lawful, provided that: (1) The company does not state in its articles of association that dealing with interest is among its objectives; (2) The total amount of interest-bearing debt does not exceed 30% of the 12-month average market capitalization; (3) The total amount of interest-earning cash and bank deposits does not exceed 30% of market capitalization; (4) Total accounts receivable does not exceed 67% of market capitalization; (5) Income from non-permissible ancillary operations does not exceed 5% of total gross revenue. Any impermissible revenue must be strictly purified through charity."
Strict Compliance Conditions:
- Core business must be Halal
- Total interest-bearing debt < 30% of market capitalization
- Cash and interest deposits < 30% of market capitalization
- Receivables < 67% of market capitalization
- Non-compliant income < 5% of revenue and must be purified
Applicable Equities:
INFY
TCS
AAPL
MSFT
NVDA
GOOGL
TSLA
Acknowledges modern economic necessity (Umum al-Balwa) permitting equity ownership in otherwise lawful corporations that occasionally deal with conventional banking, under strict financial leverage and purification controls.
"The Council of the Islamic Fiqh Academy confirms: (1) The basic principle is the prohibition of contributing to companies whose primary purposes include unlawful activities. (2) As for companies whose primary activity is lawful, but which occasionally borrow or invest with interest due to prevailing conventional banking monopolies, the majority of jurists permit holding their shares subject to stringent percentage ceilings and compulsory purification of any accrued impure interest dividends."
Strict Compliance Conditions:
- Company purpose must not be explicitly usurious
- Shareholder must reject usurious loans in general assemblies where possible
- Proportionate impure dividend must be spent in public welfare / charity without spiritual reward expectation
Applicable Equities:
RELIANCE
WIPRO
HCLTECH
AMZN
Governs Islamic REIT operations, permitting rental revenues from tenants engaging in non-permissible activities up to a maximum 20% benchmark, provided the properties do not exclusively promote vice.
"The Shariah Advisory Council (SAC) of the SC established that for an Islamic REIT or a Shariah-compliant property trust, rental revenue derived from activities that are not permissible under Shariah must not exceed 20% of the total turnover of the property. The fund manager must ensure property financing adheres strictly to Islamic financing facilities (Murabaha/Ijarah) and Takaful risk coverage."
Strict Compliance Conditions:
- Non-compliant rental income must not exceed 20% of total trust turnover
- Property debt financing must be 100% Islamic / Takaful
- No single property may have its predominant purpose dedicated to gambling, alcohol production, or adult entertainment
Applicable Equities:
EMBASSY
BIRET
PGINVIT
SPG
PLD
AMT
Renders general software and search engine platforms permissible provided algorithmic ad networks employ policy restrictions against prohibited categories and non-compliant ad revenue does not breach 5%.
"Technology companies whose primary platforms deliver search, productivity, enterprise operating systems, or cloud computing are classified as Halal in their core activity. Advertising revenue served through programmatic networks is subject to the standard 5% impure revenue threshold. Because platform operators explicitly prohibit illegal, adult, and illicit financial advertisements in their terms of service, incidental impermissible ad impressions are treated as non-operating impure revenue requiring purification rather than primary disqualification."
Strict Compliance Conditions:
- Core technology and software utility is lawful
- Automated ad-exchange policies maintain active blacklists against usury and adult categories
- Purification factor applied to trailing ad revenue share
Applicable Equities:
GOOGL
META
MSFT
TTD
APP
Rules that general-purpose infrastructure providers (IaaS/PaaS/SaaS) renting compute/storage to diverse global clients (including banks and insurers) are permissible under the principle of neutral utility (Aalat Mashroo’ah).
"General cloud computing infrastructure, servers, database storage, and telecommunications backbones constitute neutral commercial utilities. The hosting of diverse corporate clients, including conventional financial institutions or entertainment companies, does not render the hosting provider non-compliant, provided the provider is not specifically contracted to engineer or implement prohibited algorithms (e.g. gambling games or interest-calculation cores)."
Strict Compliance Conditions:
- Cloud compute is provided as a general neutral utility
- No specialized dedicated engineering of impermissible gaming/usury software contracts
Applicable Equities:
MSFT
AMZN
ORCL
CRM
TCS
INFY
Analyzes food delivery aggregators (Zomato, Swiggy, DoorDash) operating logistics and digital ordering where certain listed restaurants may serve non-halal items.
"Where a food tech aggregator platform acts as a neutral logistics and listing intermediary connecting consumers with thousands of restaurants, its core service is lawful courier and platform facilitation. Revenue earned strictly as a delivery fee or order fulfillment commission from Halal-compliant food orders is clean. Any listing fees or advertising commissions directly attributable to restaurants whose primary trade is prohibited must be quantified and purified. If non-permissible merchant transactions exceed 5% of total gross platform commission, the stock breaches compliance."
Strict Compliance Conditions:
- Platform does not own or manufacture non-permissible products
- Non-compliant merchant revenue constitutes less than 5% of gross platform fee income
- Accurate delivery fee segregation and strict dividend purification
Applicable Equities:
ZOMATO
DASH
UBER
Addresses electronic transaction processing gateways (Paytm, Infibeam, Adyen, Block). Processing fees are permissible based on Ujrah; interest earned on customer escrow float balances must be segregated and purified.
"Payment switch and gateway operations providing point-of-sale routing, QR payments, and merchant acquiring are lawful services based on Ujrah (fee-for-service). The company must not operate credit lending facilities with usurious charges as its primary source of income. Floating funds held temporarily in merchant escrow accounts that earn interest from scheduled bank deposits must not exceed 5% of total corporate revenues, and must be treated as impure funds requiring full purification."
Strict Compliance Conditions:
- Core business model relies on transaction fee (Ujrah) rather than usurious lending spreads
- Interest earned on regulatory escrow balances must not exceed 5% and must be purified
- No proprietary peer-to-peer interest loan book without Shariah governance
Applicable Equities:
PAYTM
INFIBEAM
SQ
ADYEN
Affirms that regulatory emissions credits and governmental clean-energy incentives (such as automotive ZEV credits sold to other automakers) are lawful commercial rights (Huquq Maaliyyah).
"Regulatory emissions certificates, zero-emission vehicle credits (ZEV credits), and government environmental compliance certificates represent recognized legal and commercial rights (Huquq Maaliyyah) possessing financial value in customary trade. Selling or monetizing these credits between manufacturers is fully permissible and does not constitute impermissible trade or unearned riba."
Strict Compliance Conditions:
- Credits must represent verified regulatory entitlements or physical emissions offsets
- Trading must occur without speculative futures contracts involving interest margin facilities
Applicable Equities:
TSLA
TATAMOTORS
RIVN
NIO