Qabd hukmi (constructive possession)
Possession recognised in law without physical delivery, for example through documents, registration or an account entry.
Qabd hukmi is constructive possession: a situation that Shariah treats as possession even though nothing is physically handed over. AAOIFI's standard on possession recognises it where the holder gains control and the ability to deal in the asset, for example through registration, delivery of documents of title or an entry in an account, and its currency standard accepts actual or constructive possession of the countervalues. Because much of modern finance is electronic, deciding which electronic events amount to constructive possession is a recurring governance question.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.