Analysis of the challenges of borrowing and selling shares in the stock exchange with an emphasis on the opinions of Imamiyya jurists

Document Type : Technical-Scientific

Authors

1 Azad University of Tehran, Department of Research Sciences

2 judge

3 Student of Phd in Private Law In University of Judicial Sciences and Administrative Services-Judge

Abstract

New financial instruments and institutions cause the development of the stock market and securities and consequently cause the growth and prosperity of the economic system. However, all modern financial instruments and institutions in the world and their implementation framework are not compatible with the provisions of Islamic Sharia and Iranian law, and therefore they are not able to be implemented in the country's markets.One of these new institutions is stock borrowing, in which the stock owner lends his share to the borrowing seller and the seller sells the shares at the daily market price; Whenever the owner of the shares calls for the return of the shares or the borrowed seller wants to return the borrowed shares, the process of selling borrowed shares ends.The advantage of this method is that in the usual method of buying and selling stocks, the investor gains by increasing the stock price, but in this transaction, the investor (borrowing seller) gains by decreasing the stock price.The most important challenges that are raised in relation to the sale of loans are the greediness, the usury, the suspension of the transactions, the connection of this type of transactions with gambling, which after analysis and investigation, it seems that this newly established institution in the country is compatible with jurisprudential institutions.

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