Islamic stock index starts investing in India

Muslims are forbidden by Shariah law from investing in corporations that make a profit off interest. In order to facilitate business-minded Muslims who would like to broaden their investment portfolios, the Bombay Stock exchange (BSE), the Mumbai-based Taqwaa Advisory and Shariah Investment Solutions have launched an Islamic stock index of India’s top 50 corporations that adhere to Shariah law. Also known as the Bombay Stock exchange TASIS Shariah 50, this index provides Muslims with the opportunity to invest in some of probably the most liquid stocks accessible on the BSE 500. They’ll now be able to follow their laws without having to take out substantial personal loan. Post resource – Shariah Islamic stock index opens in India by MoneyBlogNewz.

Looking at the Islamic stock index shows industry growing

The Wall Street Journal reports that, even more impressive than the BSE, was the Islamic stock index which went up 0.5 percent. There isn’t much risk or extra interest typically with the Shariah-compliant merchandise like mutual funds. The Islamic world does this a lot. The WSJ reports the Shariah finance is a trillion dollar industry around the world which the BSE TASIS Shariah 50 is playing a huge role. It makes sense the Islamic stock index is needed, considering about 15 percent of the population in India is Muslim, which is one of the largest Muslim markets on the earth.

Credit-to-deposit is not deposited

The national credit-to-deposit proportion is about 74 percent, although Indian Muslims only have it at about 47 percent which was discovered by the Reserve Bank of India. The WSJ explains that it means that Indian Muslims borrow a lot of cash compared to what is saved in order to maybe purchase assets at lower prices than the rest of the Indian population or even start an enterprise. Experts predict the BSE TASIS Shariah 50 might help smooth out that proportion for Indian Muslims, however it also remains likely the Islamic stock index will make India a destination for foreign Islamic finance.

Citations

Debt Steps

debtsteps.com/credit-to-debt-ratio.html

Wall Street Journal

blogs.wsj.com/indiarealtime/2010/12/27/bombay-exchange-hopes-to-score-with-shariah-index/

Some call it ‘financial jihad’

youtube.com/watch?v=Ulp_96DYiqg