Insider dealing

Fraud in Islam?

Research output: Contribution to journalArticle

Abstract

Purpose The purpose of this paper is to examine whether insider dealing is fraud from the perspective of Islam. Design/methodology/approach The paper uses analogy (ITqiyas/IT) of the injunctions in the Qur'an and Sunnah and critical analysis of literature on Islam. Findings The paper finds that insider dealing is fraud (ITtaghrir/IT) in Islam and the defrauded party has the option to rescind the transaction for fraud (ITkhiyar al-tadlis/IT) as well as for latent defect (ITkhiyar al-'aib/IT). Practical implications The paper is practical as a source of reference in legislating laws relating to insider dealing particularly where ITShari'ah/IT is the principal source of law. Originality/value The paper presents a novel attempt in establishing that insider dealing is fraud from the perspective of Islam.

Original languageEnglish
Pages (from-to)140-148
Number of pages9
JournalJournal of Financial Crime
Volume19
Issue number2
DOIs
Publication statusPublished - 2012

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fraud
Islam
source of law
transaction
Law
Fraud
Insider
methodology
Values

Keywords

  • Crimes
  • Finance
  • Fraud
  • Insider dealing
  • Insider trading
  • Islam

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Law

Cite this

Insider dealing : Fraud in Islam? / Abdul Jabbar, Siti Faridah.

In: Journal of Financial Crime, Vol. 19, No. 2, 2012, p. 140-148.

Research output: Contribution to journalArticle

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