Short-selling research collection

Short-selling research

The ISRA page was an index titled Articles on Short-Selling. Its 16 April 2009 capture contains one numbered entry and a download link. We checked the content table, not unrelated navigation links. No second original entry was found in that capture; later additions remain unverified.

Sources: A

1. 1. Fiqh Issues in Short Selling as Implemented in the Islamic Capital Market in Malaysia

   Focus: fiqh (Islamic jurisprudence) questions in the Malaysian short-selling arrangement studied at the time.

   Authors

   Asyraf Wajdi Dusuki and Abdelazeem Abozaid

   Publication

   Journal of King Abdulaziz University: Islamic Economics, 21(2), 63–78 (2008); DOI 10.4197/islec.21-2.3

   Language

   English main text; final page includes an Arabic abstract, not a complete Arabic translation

   Access

   Original journal paper read through an external reproduced PDF; the catalogue alone supplies no full text.

   The authors examine stock lending, sale before possession and benefits stipulated for a lender. Their conclusion accepts possible juristic answers on ownership and stock lending but identifies the stipulated lending gain as riba and calls for reconsideration of the RSS ruling they discuss (pp.76–77). This is their attributed historical argument; the page does not adopt it as a new ruling.

   Sources: A · B · C

   • Read external paper copy at IEFpedia (PDF)
   • Publisher file listed by RePEc — retrieval unsuccessful in this check
   • Bibliographic record and DOI

How to read and cite this entry

Use the original title and both authors to identify the work. The paper’s printed year is 2008. The archive timestamp is 2009, while the external PDF’s upload path contains 2010: neither replaces the publication year. Citation details help you find the paper; they do not prove its findings apply to a different mechanism.

Sources: A · B · C

Where do the shares, cash and obligation move?

For orientation, the example below isolates a conventional borrowed-share short position. A seller sells first and later buys shares to return to the supplier. A price fall can create a gross gain; a rise creates a gross loss. This arithmetic describes the price exposure, not a Shariah structure or a broker’s executable service.

The cash received from selling is not the same as spendable profit. Collateral and other account restrictions may tie up cash. Gross results exclude brokerage, securities-supply charges and any distribution compensation, taxes and funding costs. Obtain a dated broker agreement and fee schedule before comparing actual costs; no current tariff is recovered here.

Sources: B · G

Keep today’s facility separate from the old paper

Regulated Short Selling (RSS) is a trading category; Securities Borrowing and Lending (SBL) is a securities-supply arrangement. Bursa’s indexed FAQ distinguishes RSS, Permitted Short Selling (PSS) and Intraday Short Selling (IDSS). It says RSS needs a designated account and borrowing or the specified borrowing-availability confirmation before orders are executed. These requirements do not themselves settle a Shariah question. Only those limited FAQ points were verified; the full rulebook and broker implementation were not.

Islamic Securities Selling and Buying – Negotiated Transaction (ISSBNT) is a later, sale-based alternative to conventional Securities Borrowing and Lending – Negotiated Transaction (SBLNT). The Securities Commission Malaysia (SC) dated compilation describes two outright sales, two unilateral undertakings, a conditional option and collateral, and permits the proposed model. Bursa’s framework page separately dates the SC Shariah Advisory Council (SAC) decision to 26 February 2015. That is a different structure from the lending return criticised by the 2008 authors.

Bursa distinguishes Approved Suppliers from Approved Users: the supplier criterion includes an individual or corporate body with a valid Depository account; users fall into specified institutional categories. This page does not list religion as an eligibility criterion. Muslim and non-Muslim readers can use this research, but neither religious identity nor a Shariah-compliant stock label establishes access, suitability or approval for a particular transaction.

Sources: D · E · F · G · H

Before using the paper in a decision

A Malaysian reader comparing an ordinary share investment with a short position should first identify the obligation: an owned investment and a duty to return shares create different price exposures. Treat this as an editorial comparison, not a recommendation.

• Record the exact mechanism: ordinary shareholding, conventional SBL/RSS or a named ISSBNT arrangement.
• Read pp.76–77, not just the abstract or the title; retain both authors’ credit.
• Check current Bursa rules, eligible securities, account terms, collateral, recall and close-out arrangements with the relevant broker. The source record does not verify these for you.
• Ask for the full cost base and distribution obligations. A gross price difference is not a net return.
• For a Shariah question, provide the actual agreement and securities-supply structure to the relevant qualified adviser. A stock-screening label alone is insufficient.
• Do not cite the archive capture year or PDF upload year as the publication year, and do not present the 2008 criticism as an analysis of a model introduced later.

Related practical reading

• Shariah-compliant investing: shares, funds and realistic expectations
• Who checks Shariah compliance in Malaysia?

References

Research checked on 6 October 2026. A capture date, paper date and webpage update date mean different things. External originals remain with their hosts.