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The Bombay Stock Exchange launched an index yesterday made up of the shares of India’s top 50 companies that adhere to Sharia law, the Wall Street Journal reported.
It's called the BSE TASIS Shariah 50 index.
Shariah Investment Solutions and Mumbai-based Taqwaa Advisory joined with BSE to make the listing happen.
The Economic Times reported that TASIS hopes to promote the financial inclusion of India's 175 million-strong Muslim population, and attract investment flows from international funds that have to adhere to Shariah law.
Basically, all the firms on the index don't profit hugely from interest or sell products or services considered sinful - like tobacco, weapons and alcohol; Islamic law forbid Muslims from investing in companies firms that "derive major benefits from interest since usury is considered sinful."
Other exchanges, like the FTSE have launched Sharia-compliant indices before. The FTSE teamed with the Singapore Exchange to launch a Shariah index in 2006, and with South Africa's JSE in 2008.
For more go to the WSJ >
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