Shariah compliant Islamic index launched in India

New Delhi: The EW India Islamic Index comprising publicly listed companies, which are Shariah compliant, was launched here Wednesday to attract Gulf-based investors and make investment "moral and ethical".

The EW India Islamic Index excludes companies engaged in alcohol products, conventional financial services like banking and insurance, gambling, hotels, pork-related products, and all other business which the Shariah board considers unethical.

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The EW all-share index consists of 1,425 companies from 10 sectors and 85 different industries.

Speaking at the launch here, Delhi Chief Minister Sheila Dikshit said the index would act as a guiding factor for all financial institutions and corporate houses for judicious and ethical usage of assets in business.

Former Chief Justice A.M. Ahmadi said it would benefit Indian banks and other financial institutions in planning their businesses in Gulf countries.

"It is said that to lend money on interest or to receive money on interest is a sin (under Islamic laws), therefore Muslims should avoid such practices," he said.

The index will also be used for tracking investment potential in India.

The EW India Islamic Index is a subset of EW All Share Index which has a market capitalisation of 5.6 trillion, which is 99.5 percent of the total market capitalisation of India.
Source: IANS