Hayat, Zeynelabidin

Purpose: The main objective of this research is to perform a critical analytical study of the controls estab-lished by the stock standard issued by the Shariah Board of the Participation Banks Association of Turkey (TKBB), which comprises the conditions for the permissibility of trading the stocks of mixed companies. Methodology: We apply the critical analytical method. We extrapolate the opinions of contemporary scholars on the sharia ruling regarding trading the stock of mixed companies. Findings: We have found that the stock standard of TKBB made some additions regarding the conditions for permissibility of trading the stock of mixed companies and the percentages of prohibited transactions that are allowed in these companies. On the other hand, it appears that the conditions set by the standard contain some points that may be grounds for observation and criticism, e.g., a failure to calculate the rate of inflation from riba, a lack of differentiation among some forbidden transactions, and an absence of any clarification of what is forbidden in relation to forward exchange contracts. Originality: This study is the first of its kind to address one of the standards of TKBB, which may be a reason to study other standards issued by this board.