In the case of selling securities with the condition of the embedded option at a specified price (K1) and an option at a specified price (K2), it will be permissible in the following situations:

a. The price gap between K1 and K2 shall be acceptable from the point of view of capital market experts.

b. The time interval between exercising the selling and buying options shall be acceptable from the point of view of the capital market experts.

According to the Shariah Committee’s view, although the pledging of the shares is permissible, the trade of the shares in the market greatly reduces the suspicion of Bey Al-aineh (cash buying and selling in instalment to the seller and vice versa to provide liquidity). Therefore, in the opinion of the committee, it is preferable not to pledge the shares in the said process.

Dividend and voting rights belong to the investor (purchase of shares) in the period of transfer of shares (before exercising the buying and selling options) and in case of capital increase, the investor has the right of priority to purchase shares.

In the share sale contract with two options:

. The amount of money considered as the guarantee that the parties (for trading shares) determine to minimize the risks of the option trading conditions is a valid collateral.
. The adjustment in the option contract in case of taking corporate actions is permissible is permissible in terms of the implicit commitment if the corporate actions regarding the share are done through numerical adjustment in the number and price of the underlying shares in the option contract.
. Wavering one of the trading options is permissible if another trading option is exercised as an implicit condition.