What is Shariah compliance?
Islamic law does not permit investors to invest in companies that derive significant benefit from interest or the sale of other goods/services deemed sinful within the Islamic faith (e.g. alcohol, tobacco, firearms, etc.) Shariah compliant companies included in the BSE Tasis Shariah 50 have been screened by Tasis, to ensure compliance with Islamic canonical law. 2) What is the benefit of a Shariah compliant index? Shariah compliant indices can be used to construct Socially Responsible Investment (SRI) products that are attractive to investors who do not wish to invest in stocks of companies that engage in activities that they deem to be against their beliefs. These products are particularly attractive to Islamic investors, as these instruments allow followers of the Islamic faith to invest without violating their religious principles. Several prominent studies in recent years have identified the fact that Muslim participation in India’s financial system is minimal. The Sachar Committee
