Implementation of Option in Stock Transaction

One of the discussions regarding common financial instruments in capital markets whose feasibility need to be studied is the implementation of options as the most important instrument for the right to rescind the equity (securities) transactions. In this research, with considering shares as a deed specifying the joint ownership of a definite object, the implementation of options as a preventive and compensatory principle, which is perceived as some means to promote market transparency, has been examined and recommendations have been put forward for the purposes of policy-making concerning the method of regulation within the equity transactions in the Islamic capital market. Through the bases and criteria of options presented by the jurists and lawyers, the “No-damage Rule” and the “Dominion of Will” have been mentioned as the two main bases for most options. If in any given transaction, such these criteria exist, there originates the initial source for implementing the option in that transaction. In addition, based on the suggested analysis, it’s been concluded that lesion, deception and loss are formed along with the transactions by means of insider trading and market manipulation, which regardless of any of these issues, in case there is a lack of executive obstruction, we could affirm the existence of the right to rescind the equity transaction and the final conclusion is that there exist only five options that are capable of being implemented in equity transactions namely as lesion, deception, separation of some goods, breach of condition and the option of defect.