Seyed Abbas Mousavian: Difference between revisions
| (2 intermediate revisions by the same user not shown) | |||
| Line 102: | Line 102: | ||
Rejecting these theories, Mousavian maintains that the principal means of earning profit is genuine transactions and that any new transactions resulting from the expansion of the banking system must be rigorously scrutinized to ensure they are free from usury, whether in the form of loans or trade.<ref>Mousavian, Financial Instruments, pp. 150-164.</ref> | Rejecting these theories, Mousavian maintains that the principal means of earning profit is genuine transactions and that any new transactions resulting from the expansion of the banking system must be rigorously scrutinized to ensure they are free from usury, whether in the form of loans or trade.<ref>Mousavian, Financial Instruments, pp. 150-164.</ref> | ||
=== | === Distinguishing Permissible and Impermissible Stratagems for Circumventing Usury === | ||
Mousavian divided stratagems for circumventing usury into permissible and impermissible | Mousavian divided stratagems for circumventing usury into permissible and impermissible. According to him, the criterion for stratagems are impermissible where there is no genuine intention to undertake the alternative transaction or the circumventing act is really usury though the parties have a genuine intention. He maintained that this distinction depends mainly on the parties’ intentions. In contrast, he classified spot and deferred sales, as well as the leasing of fixed assets, among permissible stratagems. In many transactions, he believed, the parties genuinely intend to make permissible transactions to avoid prohibited usury.<ref>Mousavian, Financial Instruments, pp. 164-187.</ref> | ||
== Securities from Mousavian’s Perspective == | == Securities from Mousavian’s Perspective == | ||
Abbas Mousavian | Abbas Mousavian recognized several financial instruments as Islamic financial instruments, including [[qard al-hasan securities]],<ref>Mousavian, Islamic Financial Instruments, pp. 347-354.</ref> [[murabaha securities]] (in some types),<ref>Mousavian, Islamic Financial Instruments, pp. 359-361.</ref> and lease securities<ref>Mousavian, Islamic Financial Instruments, pp. 372-374.</ref> He regarded these securities as purposive alternatives to [[bonds]] and [[preferred shares]] which are typically interest-based.<ref>Mousavian, Islamic Financial Instruments, p. 345.</ref> | ||
=== Bonds === | === Bonds === | ||
Abbas Mousavian divides bonds into four categories | Abbas Mousavian divides bonds into four categories: interest-bearing bonds, income bonds, prize bonds, and discount bonds. He provided a critical analysis of the jurists' perspectives on these categories, focusing primarily on loans, usury, and the underlying rationales for their prohibition.<ref>Mousavian, Islamic Capital Market, pp. 364-370.</ref> Mousavian maintained that none of the ideas offered to justify various types of bonds in terms of Sharia have a jurisprudential foundation; according to the definition of usury, every loan in which an increase is stipulated and the borrower undertakes to pay that increase constitutes usury and is prohibited.<ref>Mousavian, Islamic Capital Market, pp. 366-370.</ref> | ||
=== Murabaha Securities === | === Murabaha Securities === | ||
According to Mousavian, murabaha is a type of sale (purchase and sale) that | According to Mousavian, murabaha is a type of sale (purchase and sale) that in form of securities represents the owner’s debt to the holder of the security.<ref>Mousavian, Islamic Financial Instruments (Sukuk), p. 355.</ref> Mousavian regards murabaha as legitimate in Imami jurisprudence that based on a hadith of the sixth Imam of the Shia.<ref>Mousavian, “The Application of Murabaha in Interest-Free Banking,” p. 38; Kulayni, al-Kafi, 1407 AH, vol. 5, p. 201.</ref> According to Mousavian, trading murabaha securities includes transactions other than the murabaha sale; Shia jurists seem to consider certain transactions of these securities to be valid.<ref>Mousavian, Islamic Financial Instruments (Sukuk), pp. 359-360.</ref> | ||
=== Ordinary Shares === | === Ordinary Shares === | ||
According to Mousavian, shares are a new phenomenon with no precedent in jurisprudential texts and constitute one of the newly | According to Mousavian, shares are a new phenomenon with no precedent in jurisprudential texts and constitute one of the newly emerged issues.<ref>Mousavian, Islamic Capital Market, pp. 387-399.</ref> Mousavian maintains that the establishment of public companies and their activities within the framework of specific laws and regulations have no jurisprudential prohibition provided their activities concern legitimate subjects and are conducted in accordance with religious standards.<ref>Mousavian, Islamic Capital Market, p. 399.</ref> | ||
=== Preferred Shares === | === Preferred Shares === | ||
Seyed Abbas Mousavian maintains that certain preferred shares | Seyed Abbas Mousavian maintains that certain preferred shares have no jurisprudential prohibition, while others are prohibited. According to him, “non-cumulative fixed-dividend preferred shares” and “non-cumulative participating preferred shares” are permissible, but “cumulative fixed-dividend preferred shares,” “cumulative participating preferred shares,” and “floating-rate preferred shares” are instances of impermissible stratagems and usury.<ref>Mousavian, Islamic Capital Market, p. 415.</ref> | ||
== Internal Links == | == Internal Links == | ||
Summaries of several books by Seyed Abbas Mousavian have been written in the [[Encyclopedia of Contemporary Jurisprudence]]: | Summaries of several books by Seyed Abbas Mousavian have been written in the [[The Contemporary Jurisprudence Encyclopedia|Encyclopedia of Contemporary Jurisprudence]]: | ||
* [[Foundations of Islamic Finance (book)|Foundations of Islamic Finance]] | * [[Foundations of Islamic Finance (book)|Foundations of Islamic Finance]] | ||