BSE TASIS Shariah 50 Index: India's Shariah Index for Islamic Investments: Finance Trading Times

BSE TASIS Shariah 50 Index: India's Shariah Index for Islamic Investments

India has got its first Shariah compliant Index which strictly follows the Shariah Guidelines which are drafted by local India based Shariah Advisory board. The index is called BSE TASIS Shariah 50 Index and will be available from 27th December 2010 onwards.

What will be the composition of BSE TASIS Shariah 50 Index? BSE TASIS Shariah 50 Index
The top 50 companies listed on BSE which will adhere to the criteria set for the BSE TASIS Shariah 50 Index will form this Index. These 50 companies will be from the BSE 500 index, that means 50 out of 500 top BSE companies will form this BSE TASIS Shariah 50 Index

What will be the use of this BSE TASIS Shariah 50 Index?
The launch of this index will enable various investment firms and brokerage/mutual fund houses to start investment schemes like Mutual funds, Exchange traded funds, etc. which will be based upon this BSE TASIS Shariah 50 Index. Read more about working of Islamic Mutual Funds: How Sharia Mutual Funds Work?.
These kinds of mutual funds, ETF's and investment products fall under the umbrella of what is called Socially Responsible Mutual Funds. Read more about Socially Responsible Mutual Funds

What are the benefits of investment products based on BSE TASIS Shariah 50 Index?
There is a big investor community, in India as well as abroad, who wishes to follow Shariah guidelines for investments. Hence, the Shariah compliant products offer them a good opportunity to invest as per their religious beliefs.
For the investment companies and exchanges, it presents another opportunity for big business. As many shariah based investors are still not investing in the open market, having investment products based on shariah guidelines will help them get these investors and mean big business for them.

The screening of the constituent stocks in BSE TASIS Shariah 50 index will be done on a monthly basis. Non compliant sotcks will be moved out and those which qualify will be included.
The index will be licensed for the construction of Shariah compliant financial products including mutual funds, ETFs, and structured products, and that is this licence fee will generate the revenue for BSE. The index is being launched as a joint partnership between BSE and Taqwaa Advisory and Shariah Investment Solutions (TASIS)
NSE is also reported to have the S&P CNX 500 Shariah Index, which is based on the Free Float Market Capitalization Weighted Methodology
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