The Need for Due Diligence in Sharia-compliant Halal Options
‘Halal’ alternatives are viewed as moral wherein the sum can be put resources into exchange of wares acknowledged under the Islamic law and a benefit is imparted to the investors.
However, be wary as there were a grand total of 9,520 complaints before the Commercial Street police in Bengaluru against I Monetary Advisory (IMA) and its overseeing executive Mohammed Mansoor Khan, and a case enlisted under segments 406 and 420 of the IPC for criminal rupture of trust and conning as of 6pm on Tuesday.
IMA offered them ‘halal’ invesment alternatives. As indicated by the Sharia law, it isn’t adequate or is ‘haram’ (disallowed) to draw interests (riba) and subsequently, the individuals who pursue and trust in the Sharia law doing store cash in banks. In this manner, the complainants here progressed toward becoming investors of the privately owned business who might share its benefits. The cash was contributed under the IMA Credit Co-employable Society Limited which appeared in April 2017, 11 years after IMA was established.
However things turned out badly when IMA neglected to give any cash in the course of the most recent couple of months; the complainants got fluctuating sums every month which attracted more individuals to put resources into the plan.
Moreover, many hysterical investors had gathered outside the IMA adornments store in Shivajinagar on Monday following the course of a sound clasp purportedly of IMA MD Mansoor Khan declaring that he would end it all as he kept running into money related misfortune. IMA, according to the complainants, offered around 3% benefit every month on their saved sum and the rate changed “contingent upon the organization’s exhibition”.
The victims, for the most part from the lower white collar class, alongside their grievances submitted receipts of their interests in the organization under a “month to month pay plan”. One of the financial specialists present at the area said their ‘maulvis’ (religious heads) had exhorted them to put resources into the organization and a considerable lot of them contributed as a major aspect of “a chain-like framework”.
On November 16, 2018, the associate magistrate of police, Bengaluru, had issued an open notice expressing that the IMA was engaged with illicitly gathering cash from open and occupying it for the chief’s personal responsibility, in this way driving default in reimbursement of contributors’ cash.
The notice additionally said that the legislature had delegated an able specialist to relinquish portable and resolute properties of IMA. A few grievances had been held up when the notice was issued. The Karnataka government on Tuesday framed an extraordinary examination group to assume control over the case. The lesson learned from this case is never fail to do due diligence in any form of investment, even Sharia-compliant ones.
FIAT Exchange — as a pioneer in the consensus industry, we offer the tools to democratize access to finance. Through our platform, investors are able to identify opportunities in Small and Medium Enterprises.
At FIAT Exchange, we have consultants to help corporations launch their Security Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.
While there already other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.
If you are an Investor looking to unlock access in the FIAT ecosystem and discover new investment opportunities, please feel free to contact us: investors@fiatxs.com
If you are an Entrepreneur looking to raise capital, we can help you! Please email us: startups@fiatxs.com
Stay updated with our latest news:
Facebook: https://www.facebook.com/fiatxs
Twitter: https://twitter.com/FiatXS
Medium: https://medium.com/fiatxs
LinkedIn: https://www.linkedin.com/company/fiatex
