Imam Sadiq University "Islamic Finance Research" (IFR) 2251-8290 11 2 2022 04 21 Analysis of Jurisprudential Principles of Limiting the Range of Price Fluctuations in the Capital Market Analysis of Jurisprudential Principles of Limiting the Range of Price Fluctuations in the Capital Market 473 512 76377 10.30497/ifr.2022.242244.1683 FA Navidreza Keyvani M.A. Student, Private Law, Islamic Studies and Law Faculty, Imam Sadiq University, Tehran, Iran Seyyed Morteza Shahidi Assistant Professor, Department of Private Law, Law Faculty, Theology and Political Science, Science and Research Unit, Islamic Azad University, Tehran, Iran Journal Article 2021 12 01 The capital market, as a platform for financing the productive projects, plays an important role in achieving the economic growth of countries and maintaining its stability and security is doubly important in the eyes of legislators, hence the need for applying some control mechanisms. One of these is the application of price fluctuation range so that during the workday, each person can only buy and sell stocks within a limit. Experts in the field of capital markets have expressed conflicting views on the consequences of implementing this mechanism. Some of them have agreed on this mechanism by stating its benefits, but some have opposed by referring to its negative consequences in the market. Meanwhile, there are differences among jurisprudential researchers as it concerns the principles of the implementation of this mechanism. Proponents of the mechanism, while explaining the reality of the Iranian capital market, consider it necessary to protect the rights of small investors and cite the no-harm rule and focus on the role of the stock exchange organization as well as adhering to the international trade custom, thus trying to prove the legitimacy of the mechanism in question. In contrast, opponents of the mechanism, by explaining the principles governing Islamic economics and elaborating on the rule of domination, rule out the state interference in shareholders’ freedom of trade and deny any legal authority to impose restrictions on fluctuations. Also, according to the latter stance, reliance on jurisprudential principles to prove the secondary ruling on the legitimacy of fluctuation mechanism is rejected because of its negative consequences and the data gained by statistical research conducted in the capital market of Iran and other countries. It is believed that the dominance of the secondary ruling over the primary ruling has its own conditions. In the subject under discussion, these conditions have not been met. The capital market, as a platform for financing the productive projects, plays an important role in achieving the economic growth of countries and maintaining its stability and security is doubly important in the eyes of legislators, hence the need for applying some control mechanisms. One of these is the application of price fluctuation range so that during the workday, each person can only buy and sell stocks within a limit. Experts in the field of capital markets have expressed conflicting views on the consequences of implementing this mechanism. Some of them have agreed on this mechanism by stating its benefits, but some have opposed by referring to its negative consequences in the market. Meanwhile, there are differences among jurisprudential researchers as it concerns the principles of the implementation of this mechanism. Proponents of the mechanism, while explaining the reality of the Iranian capital market, consider it necessary to protect the rights of small investors and cite the no-harm rule and focus on the role of the stock exchange organization as well as adhering to the international trade custom, thus trying to prove the legitimacy of the mechanism in question. In contrast, opponents of the mechanism, by explaining the principles governing Islamic economics and elaborating on the rule of domination, rule out the state interference in shareholders’ freedom of trade and deny any legal authority to impose restrictions on fluctuations. Also, according to the latter stance, reliance on jurisprudential principles to prove the secondary ruling on the legitimacy of fluctuation mechanism is rejected because of its negative consequences and the data gained by statistical research conducted in the capital market of Iran and other countries. It is believed that the dominance of the secondary ruling over the primary ruling has its own conditions. In the subject under discussion, these conditions have not been met. https://ifr.isu.ac.ir/article_76377_92f4182ad6795b13f8c01d90c09b2a52.pdf