Subject: Bombay Stock Exchange launches Islamic index - BBC
From: "Michael Andrews" <[email-masked]>
To: "Curtis Hastings" <[email-masked]>, "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>, "Devon Archer" <[email-masked]>, "Neil Callahan" <[email-masked]>
Date: Tue, 28 Dec 2010 11:22:03 -0500

27 December 2010 Last updated at 10:10 ETShare this  
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Bombay Stock Exchange launches Islamic index

Backers say that the index would "unlock the potential for Sharia  
investments in India".
The Bombay Stock Exchange (BSE) in the Indian city of Mumbai has  
launched a new index which consists of companies that meet the Islamic  
legal code.

The Tasis Shariah 50 was formed using guidelines from an Indian  
Shariah advisory board.

Studies have found that most Muslims in India are excluded from the  
country's formal financial sector.

That is because Islamic law does not allow investment in companies  
that sell goods like alcohol, tobacco or weapons.

Neither does it allow investment in companies that derive significant  
profit from interest.

The index is intended to be the basis for other Shariah-compliant  
financial products.

'Come and invest'
BSE Managing Director and Chief Executive Madhu Kannan said that the  
new index would attract Islamic and other "socially responsible"  
investors both in India and overseas.

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All Muslim countries of the Middle East and Pakistan put together do  
not have as many listed Sharia-compliant stocks as are available on  
the BSE”

Tasis Director of Research and Operations Shariq Nisar
"This index will create increased awareness of financial investments  
among the masses and help enhance financial inclusion," he said in a  
statement.

Companies included in the index have been screened by Tasis, which is  
based in Mumbai and whose board members include Islamic scholars and  
legal experts.

"Before anyone can attract investors, we need to put in place  
institutional infrastructure, and having an index to track Shariah- 
compliant stock is important," MH Khatkhatay, senior adviser to Tasis,  
told the Reuters news agency.

"If you have an ETF (exchange traded fund), for example, you need an  
index, or if overseas investors want to invest in Shariah index in  
India, this is an invitation for people to come and invest."

Tasis said the index would "unlock the potential for Sharia  
investments in India".

"The BSE has the largest number of listed Sharia-compliant stocks in  
the world," said Shariq Nisar, director of research and operations at  
Tasis.

"All Muslim countries of the Middle East and Pakistan put together do  
not have as many listed Sharia-compliant stocks as are available on  
the BSE."

Stocks will be reviewed every month to ensure they continue to meet  
the criteria - any which do not will be removed, officials say.