Bonds

In our country, government floats prize bonds among public. When the dates for purchasing of bonds get closed, you will have to wait for 2 months for its draw. 15 days before draw, bonds are sold for high price. For example a 40.000 worth bond is sold at 40.800 and can be bought from 40.900. If I purchase some bonds and sell it on profit before draw, is the additional 800 is legal?

A bond is a debt security which includes interest. Giving/taking loans on interest is forbidden in Islam. You ask for the ruling of buying/selling these kinds of loans as a financial instrument. This is surely, clearly forbidden. Any additional benefit gained from this kind of transaction is considered as interest and illegal.

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Date: May 31, 2013