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Expanding Mudarabah Investment Portfolio
Is it permitted for a bank to expand its Mudarabah investment portfolio without informing the investors?
It is not permissible for the working partner (the bank, in this case) to expand its investment portfolio without consultation with the investors. The investors who agree to the expansion are treated as investors under an Unrestrictive Mudarabah, while the investors who do not agree to the expansion are treated as investors under a Restrictive Mudarabah and funds contributed by the latter are invested as before.

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