Market Manipulation and the role of Hisbah

This article examines the Market Manipulation and the role of Hisbah from an Islamic perspective. I begin with a snapshot of financial markets and the meaning of manipulation. Understanding more about how jurisprudence was designed to adapt to existing Islamic Sharīʿah laws and institutions will help clarify some of the unique features in Shari’ah principlconcerning financial markets. I will discuss the Islamic ḥisbah (حسبة‎) developed in Muslim societies and how it benefits from International law. Hisbah system means ‘accountability’ or a duty to ‘enjoin good and forbid wrong’. The institution of ḥisbah system, once revived, came to represent a semi-governmental agency that takes charge of different aspects of market regulations, especially those that do not fall under the macro-policies. Finally, I will discuss whether principles of market manipulation, supplemented in Shari’ah principl, have attained their purpose and provide some recommendation