Resolutions of the Securities Commission Shariah Advisory Council

RESOLUTION
Principles of Muamalat in the Capital Market
BAI` BIMA YANQATI` BIHI SI`R
At its 10th meeting on 16–17 October 1997 and 11th meeting on 26
November 1997, in discussing the issue of crude palm oil futures contract,
the SAC passed a resolution permitting the concept of bai` bima yanqati`
bihi si`r (BBMYS) which is in accordance with Islamic jurisprudence.
INTRODUCTION
BBMYS, as defined by Ibnu Qayyim is the practice of taking a certain
amount of goods, such as bread, meat and oil from the seller by the buyer
every day and paying for them at market price at year-end or month-end
without fixing the price at the inception of the `aqd. 81 This practice will
not give rise to any dispute between buyer and seller because they have
agreed on the method of payment and price determination.
ARGUMENTS THAT SUPPORT THE PERMISSIBILITY OF
BAI` BIMA YANQATI` BIHI SI`R
The application of this principle in buying and selling is not something new.
Past Islamic jurists had determined its status based on Shariah principles. The
following sums up their opinions:
Generally, there were two opinions on buying and selling using this principle.
The first opinion came from the majority of Islamic jurists, who rejected it.
81 Ibnu Qayyim, I`lam al-Muwaqqi`in, vol. 4, pp. 5–6.
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