The Bombay Stock Exchange Ltd (BSE) and Taqwaa Advisory and Shariah Investment Solutions (TASIS) will launch the BSE TASIS Shariah 50 index from Monday, December 27. The Index will be the first Shariah Index created in India utilising the strict guidelines and local expertise of a domestic, the India-based Shariah advisory board.
The BSE TASIS Shariah 50 index consists of the 50 largest and most liquid Shariah compliant stocks within the BSE 500, an exchange release said here.
The creation of the index will help promote financial inclusion of the Muslim population in India and attract investment flows from international funds that must adhere to Shariah norms.
“The introduction of the BSE TASIS SHARIAH 50 Index will give Islamic and other socially-responsible investors another means to access the Indian market and will help attract pools of capital to India from the Gulf, Europe, and Southeast Asia,” BSE MD & CEO, Madhu Kannan said.
This index will create increased awareness on financial investments amongst the masses and help enhance financial inclusion.
The index will also build a base for licensing for the construction of Shariah compliant financial products, including mutual funds, ETFs, and structured products, Kannan said.