 In this module, we shall look into some practical aspects of profit-sharing investment accounts. We have gone into details of profit-sharing investment accounts in our previous segments or modules. We also mentioned that there are two types of profit-sharing investment accounts, restricted and unrestricted. Whether a profit-sharing investment account is restricted or unrestricted, we knew that this was based on the concept of mudaraba. In this module, we shall look into the possibility of answering four questions starting with the first one. In this module, probably I would have only time for question number one and in the subsequent modules, I would be looking into the other three questions. What are these four questions? Question number one, is it permissible to open a profit-sharing investment account with a conventional bank? So, this is our question number one. This is a valid question and we would see what is its answer. Number two, is it permissible for a bank, Islamic or otherwise, to change the profit-sharing ratio unilaterally? Number three, what is the treatment of funds in profit equalization reserve and investment risk reserve? In a previous module, we studied the use of profit equalization reserve and investment risk reserve for smoothening of the profits. The question is, what could be the treatment of funds which are left in these two reserves? And number four, is it permissible for an Islamic bank to offer guarantee of capital and return on profit-sharing investment accounts? We shall answer question number one first. To answer the first question, is it permissible to open a profit-sharing investment account with a conventional bank? For this to answer, we need to look into the contract of Mudaraba and its requirements and rules. Just to refresh our mind and memory, Mudaraba is a contract between two parties whereby one party provides capital and the other party does the business. On the condition that if there is a profit, that profit would be shared between the two parties in accordance with a pre-agreed profit distribution ratio and if there is any loss, that would be borne by the party providing capital. So this is Mudaraba. Mudaraba rules require that it should be between two parties. So one party provides capital and we said this party is known as Rabbul Mal and the other party does the business. Now can one of these parties be an institution, i.e. Rabbul Mal, the capital provider, can it be an institution rather than an individual or the other way around? Can the party receiving the funds and doing the business, can this be an institution rather than an individual rather than an individual? Modern corporation, the companies, businesses organized in companies, this is a new phenomenon. This is the product of the modern world. When Islam came into being about 14-15 centuries ago with the prophethood of Hazrat Muhammad sallallahu alayhi wa sallam, at that time this modern corporation wasn't there. Individuals and families, they used to do business. However, Islamic law does recognize the legal status of this new form of business, i.e. modern corporation because this is considered as a legal person and a legal person like an individual can sue others and can be sued. So Mudarba is allowed between any legal person, whether this is an individual or a company. This means that a profit-sharing investment account can be opened with a bank which happens to be a company. Now, is it permissible to open a profit-sharing investment account with a conventional bank? We have established that it is possible to open a profit-sharing investment account on a Mudarba basis with a bank but is it permissible to open it with a conventional bank? A conventional bank is an interest-based banking institution. Now, the answer is yes. It is permissible to open bank account, profit-sharing investment account with a conventional bank as long as it segregates the funds in profit-sharing investment accounts from the other funds. So this segregation is absolutely important for a conventional bank offering profit-sharing investment accounts or any other Islamic financial product. So a Mudarba, at the end, I would like to say, even a Mudarba can take place between a Muslim and a non-Muslim as long as the requirements of Mudarba are observed by both parties, i.e. by the Muslim and the non-Muslim party. So given this one, our answer to question one is that it is absolutely right to open a profit-sharing investment account with a conventional bank even if it is owned by non-Muslims. For example, when HSBC started Islamic banking, a lot of people started asking, is it permissible to open an Islamic banking account with a bank like HSBC which is owned by non-Muslim shareholders predominantly? The answer was yes as long as HSBC does its Islamic banking business in compliance with Sharia. So the answer is yes, profit-sharing investment accounts can be opened with conventional banks.