01 May 2013

Bombay Stock Exchange (BSE) launched Islamic Equity Index


The Bombay Stock Exchange (BSE) on 30 April 2013 launched an Islamic equity index based on the wide-measure S&P BSE 500 index. It will provide a new benchmark for Islamic investors in one of the world's largest stock exchanges.The new index includes the largest 500 companies in the BSE, out of more than 5000 listed. These companies fulfill Islamic finance principles such as bans on investing in alcohol, tobacco and gambling-related businesses. The BSE had launched the country’s first Islamic index in 2010 after tracking the 50 largest and most liquid stocks.
India's Islamic banking industry has made slow progress because banking rules need lenders to declare the rates of interest they charge customers. This condition it at odds with Islamic banks which base their products on profit rates instead. In this regard to satisfy the needs of Muslims in India, the industry is trying to develop investment products.