Bombay Stock Exchange (BSE) has launched a Shariah compliant index along with Taqwaa Advisory and Shariah Investment Solutions (TASIS), in an attempt to open stock-trading to more Muslims.
Shariah compliant means complying with Islamic law, which prohibits members from investing money into firms that benefit from interest or the sale of ‘sinful’ goods such as alcohol, tobacco or firearms.
The BSE TASIS Shariah 50 index consists of the 50 largest and most liquid Shariah compliant stocks within the BSE 500.
The index allows investors to buy stocks without violating Islamic investment guidelines.
Companies included in the index have been screened by TASIS, an Indian Islamic finance company based in Mumbai.
Stocks will be reviewed every month to ensure continued compliance. Any stocks that do not meet the criteria will be removed.