Knowledge

Sharia compliance refers to the adherence to Islamic law or Sharia principles, particularly in finance and investment. It ensures investments align with Islamic ethical standards, excluding businesses involved in forbidden (Haram) activities like alcohol, gambling, or conventional financial services, and not excessively burdened with debt. Given that many companies may have some level of involvement in Haram activities, Sharia compliance frameworks serve as a guideline to help Muslims navigate the financial markets. It aims to ensure a company’s core business is permissible (Halal) and any Haram involvement is minimal.

Sharia compliance refers to the adherence to Islamic law or Sharia principles, particularly in finance and investment. It ensures investments align with Islamic ethical standards, excluding businesses involved in forbidden (Haram) activities like alcohol, gambling, or conventional financial services, and not excessively burdened with debt. Given that many companies may have some level of involvement in Haram activities, Sharia compliance frameworks serve as a guideline to help Muslims navigate the financial markets. It aims to ensure a company’s core business is permissible (Halal) and any Haram involvement is minimal.

Yes, investing in the stock market can be Halal—provided you follow Islamic investment principles related to trading and Sharia screening criteria developed by a competent Sharia Board. According to the Sharia, stocks are considered Halal if the company operates in a permissible business, avoids interest-based income, interest-based debt and other financial ratios while also adhering to ethical business practices. At Zamzam Capital, we offer our followers a thoroughly vetted “Halal Stock List” to help you invest with confidence in Sharia-compliant stocks in India.

Our list of Halal stocks in India is updated semi-annually by Zamzam Capital based on financial performance and compliance with Sharia screening criteria. We conduct a 3-level screening process and in the third level check for various qualitative criteria that is not picked up by financial screening which gives our Halal stocks list greater authenticity and depth. You can access our latest Halal stocks list on our website or through our app. These stocks meet all criteria for Halal investing and Sharia compliance and are presently only selected from NSE-listed companies.

No, trading options (F&O) is not considered Halal as they do not conform to the key principles of Islamic investments. This is due to the speculative nature (gharar) of options contracts, which violate the principles of Sharia-compliant investing. At Zamzam Capital, we do not include derivatives, futures, or options in our Halal investment framework.

To invest in Sharia-compliant stocks in India, start by referring to a verified Halal stocks list, such as the one curated by Zamzam Capital. Open a demat account with a broker that is reliable and then choose stocks by referring to our Halal stocks list by conducting your own research on them and shortlisting them for trading or investment. Our platform simplifies this by offering regular updates and screening support. If you cannot trade or invest on your own due to lack of time or knowledge on doing research on shares as per fundamental and/or technical analysis then you should use the services of a SEBI-registered intermediary known as a Research Analyst (RA) or Registered Investment Advisor (RIA) who can guide you to invest in short-listed stocks as per their in-house research. However you need to ensure that the stocks you invest in our Halal by cross checking with our or any other Halal stocks list.

As a SEBI Registered Research Analyst, our focus is on offering you Sharia compliant direct stock picks and model portfolios that suit your trading and investing style. We thus do not comment on existing mutual funds in the market that call themselves Sharia compliant as that is not our focus and nor are we allowed to market or recommend mutual funds as per SEBI regulations. That said we recommend you analyze any such mutual fund that call itself Sharia compliant very strictly for Sharia compliance and review their component stock list with the Halal stock list you are following to see if there is a match or not and then decide accordingly if you wish to invest in that mutual fund or not. In this regard stay tuned to our updates via YouTube, Instagram and Telegram.

A Sharia-compliant stock must:

• Be from a business with a Halal primary activity (e.g., no alcohol, gambling, banking)
• Maintain acceptable levels of debt, impure income, non-compliant investments, illiquid assets, and liquidity.
• Avoid promoting activities or businesses that are involved in non-Sharia compliant and unethical activities.
• Our screening criteria follows the methodology of Mufti Taqi Usmani (DB) and is endorsed by major Islamic seminaries in India.

Intraday trading is not Halal, as it typically involves buying and selling shares without taking constructive possession, which is against Sharia principles. Halal trading requires ownership transfer and cannot be speculative or based on leverage. You many learn more about this topic by referring to an interview with our Sharia scholar over here  (link to: https://youtu.be/Vwy-7kRQhAw )

Absolutely. Halal stocks follow ethical business practices, avoid high-risk instruments, and focus on real economic value. This makes them attractive not just to Muslims, but also to ESG and socially responsible investors seeking less leveraged, less volatile and ethical opportunities.

Our Halal stocks list is updated twice a year—on March 31st and September 30th—based on the financial reports of NSE-listed companies. We also provide ad-hoc updates for newly listed IPOs through our telegram and Instagram channels. Subscribe to our free Telegram channel to stay informed.