The basic principles of the framework of Islamic
finance includes some ethical aspects which should be followed by those
involved in any kind of financial activities.
- Justice and fair dealing: There
should not be any kind of injustice based on religion, gender, race, color, the region, etc. dealing should be fair to everyone.
- Honesty and truthfulness: there
should be transparency and honesty in financial activities and should not
hide any errors and defects in the subject matter.
- Prohibition of Najash (overbidding):
Once the deal is finalized between two people should not be hijacked with
a bigger offer.
- Prohibition of khalabah
(misleading marketing): The business communications and advertisements
with false claims should be avoided.
- Fulfilling the covenants and
removal of hardship: It is the responsibility of the seller to exchange
the product safely to the buyer without any hardship during the supply.
- Fair pricing: Pricing should be
fair in a way that does not disturb the market and customers.
- Freedom from dharar (detriment
& harm): the product should be safe for all; the customer, the society
and the environment
- Valid gains on investment: the product should offer some valid gains. Islam never permits immature spending
on over luxury.
- Transparency and documentation:
Any contract of exchange should be documented and the business, its
modes and products should be
transparent.
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