{"id":34939,"date":"2024-03-20T06:12:10","date_gmt":"2024-03-20T06:12:10","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=34939"},"modified":"2024-03-20T06:12:11","modified_gmt":"2024-03-20T06:12:11","slug":"shariah-index-upsc-economy-notes","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/","title":{"rendered":"Shariah Index &#8211; UPSC Economy Notes"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-economy?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Blog+Economy\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png\" alt=\"\" class=\"wp-image-42386\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure>\n\n\n\n<p><strong>Introduction:<\/strong> The Bombay Stock Exchange (BSE) launched the Shariah Index in 2010. This index comprises 50 stocks selected from the BSE-500 bracket. It is known as the &#8216;BSE Tasis Shariah-50 Index.&#8217; The selection criteria for this index involve adhering to Shariah principles, which have strictures regarding financial and commercial activities permitted for believers in Islam.<\/p>\n\n\n\n<p><strong>Composition:<\/strong> The Shariah Index includes stocks from sectors such as infrastructure, capital goods, IT, telecom, and pharmaceuticals. The index is designed to attract investments from Arab and European countries, where Shariah-compliant funds are popular. Arab investors, in particular, follow Shariah principles and avoid investing in stocks of companies involved in activities like alcohol, conventional financial services, entertainment, tobacco, pork meat, defense, and weapons.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69e19f0bba22e\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e19f0bba22e\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#Q1_What_is_a_Shariah_Index\" title=\"Q1: What is a Shariah Index?\">Q1: What is a Shariah Index?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#Q2_How_is_a_Shariah_Index_constructed\" title=\"Q2: How is a Shariah Index constructed?\">Q2: How is a Shariah Index constructed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#Q3_What_are_the_benefits_of_investing_in_a_Shariah_Index\" title=\"Q3: What are the benefits of investing in a Shariah Index?\">Q3: What are the benefits of investing in a Shariah Index?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#Q4_Are_Shariah_Indexes_restricted_to_Muslim_investors\" title=\"Q4: Are Shariah Indexes restricted to Muslim investors?\">Q4: Are Shariah Indexes restricted to Muslim investors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#Q5_How_do_Shariah_Indexes_perform_compared_to_conventional_indexes\" title=\"Q5: How do Shariah Indexes perform compared to conventional indexes?\">Q5: How do Shariah Indexes perform compared to conventional indexes?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/shariah-index-upsc-economy-notes\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q1_What_is_a_Shariah_Index\"><\/span>Q1: What is a Shariah Index? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: A Shariah Index is a financial tool designed to track the performance of Shariah-compliant stocks or investments. These indexes include companies that adhere to Islamic principles and avoid industries such as alcohol, gambling, and tobacco.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q2_How_is_a_Shariah_Index_constructed\"><\/span>Q2: How is a Shariah Index constructed? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: Shariah Indexes are constructed by screening stocks based on Islamic principles, including prohibitions on interest (riba), uncertainty (gharar), and unethical business practices. A Shariah advisory board typically oversees the screening process to ensure compliance with Shariah law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q3_What_are_the_benefits_of_investing_in_a_Shariah_Index\"><\/span>Q3: What are the benefits of investing in a Shariah Index? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: Investing in a Shariah Index allows individuals to align their investments with their ethical and religious beliefs. Additionally, Shariah-compliant investments often exhibit resilience during economic downturns due to their conservative nature and avoidance of highly leveraged or speculative industries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q4_Are_Shariah_Indexes_restricted_to_Muslim_investors\"><\/span>Q4: Are Shariah Indexes restricted to Muslim investors? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: No, Shariah Indexes are not restricted to Muslim investors. Many non-Muslim investors are attracted to Shariah-compliant investments due to their ethical framework and potential financial stability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q5_How_do_Shariah_Indexes_perform_compared_to_conventional_indexes\"><\/span>Q5: How do Shariah Indexes perform compared to conventional indexes? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A: The performance of Shariah Indexes can vary depending on market conditions and the specific criteria used for screening. However, studies have shown that over the long term, Shariah-compliant investments can deliver competitive returns compared to conventional indexes while maintaining adherence to ethical guidelines.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-a89a3d67-2417-45cd-a2fb-0111b244b0c1\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p id=\"block-69a62278-baf6-4ddd-a549-0ddd2778f323\">For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p id=\"block-c56c7fb3-ec87-4e90-b054-6f51ec4c67f5\">For Daily Updates and Study Material:<\/p>\n\n\n\n<p id=\"block-b119f379-961e-41a3-8289-c115ec5ee6e2\">Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-b3874375-be5a-4d16-856f-48851f19bc36\"><li>1. 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Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"block-fecb2f6f-20a7-4f52-8c9d-10509a066c20\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@EduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>The Bombay Stock Exchange (BSE) launched the Shariah Index in 2010. This index comprises 50 stocks selected from the BSE-500 bracket.<\/p>\n","protected":false},"author":17,"featured_media":34945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[209],"tags":[235,2722,232,213,140],"class_list":["post-34939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-notes","tag-economy-notes","tag-shariah-index","tag-upsc","tag-upsc-notes","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/34939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=34939"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/34939\/revisions"}],"predecessor-version":[{"id":34946,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/34939\/revisions\/34946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/34945"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=34939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=34939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=34939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}