The BSE TASIS Shariah-50 Index — launched by Bombay Stock Exchange (BSE) a couple of days ago — has received good response. This is not the first Shariah-based equity index, but the BSE tag will make a difference in its growth, say market experts.BSE has structured the index in partnership with the Taqwaa Advisory Shariah Investment Solutions (TASIS), which has picked up a large chunk of scrips from infrastructure, capital goods, IT, telecom and pharmaceuticals from the BSE-500 bracket. But no stock will have more than eight per cent weightage. The stock screening has been done by the TASIS scholar board.
With the Shariah index, BSE can now attract investors from the Gulf and European countries also, who otherwise do not invest in stocks of companies dealing in alcohol, cinemas and hotels, tobacco and pork.
“This a welcome move of the BSE,” said Zafar Sareshwala, who heads Parsoli Corporation, which had launched its Shariah-compliant Parsoli Index of Equities (PIE) two years ago. He said the new index should attract investments worth around 25 billion dollars from the Gulf countries, Europe and the US.