Reformulation of Islamic Stock Law: The Application of Taṣarrufāt al-Rasūl and Maqāṣid al-Syarī‘ah to Develop a Dynamic and Sustainable Islamic Capital Market in Indonesia

Abstract

This study explores the application of Taṣarrufāt al-Rasūl in the development of Islamic stock market law in Indonesia using a phenomenological approach. The aim of this research is to understand how the principles of maqāṣid al-syarī‘ah, which focus on public welfare and social justice, can be applied to a more dynamic and relevant regulation of the Islamic capital market that meets contemporary needs. Through in-depth interviews with Islamic capital market practitioners, Islamic law experts, and academics, the findings of this study indicate that while existing fatwas have prioritized the halal-haram aspects, there is still a gap in terms of flexibility and innovation in the Islamic stock market. This study suggests the application of the Taṣarrufāt al-Rasūl principles to create a more inclusive, welfare-oriented, and sustainable Islamic stock law, while maintaining a balance between risk and profit. The findings contribute to the development of maqāṣid al-syarī‘ah theory, which can be used to update the regulations of the Islamic capital market in Indonesia and in countries with emerging Islamic markets. This study also opens opportunities for further research on the implementation of maqāṣid al-syarī‘ah in financial innovation and the global Islamic stock market, as well as its relevance in addressing the ever-evolving economic and technological challenges.