News / Asia

India's Bombay Stock Exchange Launches Index for Muslims

A woman speaks on her phone as she walks past the Bombay Stock Exchange (BSE) building in Mumbai (File Photo)
A woman speaks on her phone as she walks past the Bombay Stock Exchange (BSE) building in Mumbai (File Photo)

In India, the launch of a new share index of companies which meet the Islamic legal code has opened new investment opportunities for Muslims. India is a predominantly Hindu country, but it has one of the largest Muslim populations in the world.       

India's stock market has grown rapidly in recent years. But trading in stocks  has posed a problem for Muslims, because of restrictions imposed by Islamic law, which does not allow investment in companies that sell goods such as alcohol and tobacco, or those which charge interest.   

Now a new share index launched by the Bombay Stock Exchange has identified stocks which are compliant with Islamic law.

The stocks were chosen with the help of a Mumbai-based Islamic finance company, Taqwa Advisory and Shariah Investment Solutions.

The director of research and operations at TASIS, Shariq Nisar, says the index, called BSE TASIS Sharia 50, will make it possible for Muslims to invest their money in the stock market without violating Sharia investment guidelines.       

"It will create a market for Indian Muslims," said Nisar.  "We can provide opportunity to domestic investors so that they can invest their money without falling foul of their ethical and religious requirement.  A lot of Muslim investors who could have invested their money in stock market and benefited from it, they were not having this opportunity earlier."

The stocks will be reviewed every month to ensure that they are compliant with Islamic law.  The Bombay Stock Exchange has many such companies, including some of India's largest, such as Reliance Industries Ltd.

There are more than 150 million Muslims in India, accounting for about 13 percent of the country's population.  But several studies have shown that many of them were excluded from the country's formal financial sector, because of Islamic restrictions.

Nisar says there were very limited investment avenues for Muslims.    

"These people were just keeping the money under their pillows," said Nisar. "Many were investing either in gold or in real estate."              

The new index will also help to attract Muslim investors in the Middle East and other countries who want to benefit from India's fast-growing economy.

You May Like

US Firms Concerned About China's New Cyber Regulations

New rules would require technology companies doing business in financial sector to hand over their source code, adopt Chinese encryption algorithms More

WHO Focus on Ebola Shifts to Ending Outbreak

Focus to be less on building facilities and more on efforts to find infected people, manage their cases, engage with communities and ensure proper burials More

US Scientist Who Conceived of Groundbreaking Laser Technology Dies

Charles Townes, Nobel laureate, laser co-creator paved way for other scientific discoveries: CDs, eye surgery, metal cutters to name a few technologies that rely on lasers More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid