Economy / Stock Market / Shariah Index
Shariah Index
- Introduction: 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 'BSE Tasis Shariah-50 Index.' The selection criteria for this index involve adhering to Shariah principles, which have strictures regarding financial and commercial activities permitted for believers in Islam.
- Composition: 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.
