Insider dealing: fraud in Islam?
Abstract
Purpose
The purpose of this paper is to examine whether insider dealing is fraud from the perspective of Islam.
Design/methodology/approach
The paper uses analogy (qiyas) of the injunctions in the Qur'an and Sunnah and critical analysis of literature on Islam.
Findings
The paper finds that insider dealing is fraud (taghrir) in Islam and the defrauded party has the option to rescind the transaction for fraud (khiyar al‐tadlis) as well as for latent defect (khiyar al‐‘aib).
Practical implications
The paper is practical as a source of reference in legislating laws relating to insider dealing particularly where Shari'ah is the principal source of law.
Originality/value
The paper presents a novel attempt in establishing that insider dealing is fraud from the perspective of Islam.
Keywords
Citation
Faridah Abdul Jabbar, S. (2012), "Insider dealing: fraud in Islam?", Journal of Financial Crime, Vol. 19 No. 2, pp. 140-148. https://doi.org/10.1108/13590791211220412
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited