Thursday, March 24, 2011

Stock broker presents Sharia-compliant list

A Sri Lanka-based stock broker has come up a with a list of Sharia-compliant securities to the Colombo Stock Exchange, in a bid to woo Sharia-compliant equity investments to the market.

Lanka Securities, a joint venture between Pakistan’s First Capital Securities Corporation, Bank of Ceylon and Merchant Bank of Sri Lanka, said, “LSL Sharia Compliant Securities List has been designed and developed, to be used as a basis for Sharia complaint equity investments at the CSE.”

The broker company also said that the list will be reviewed and screened on a weekly basis, to capture the impact of the price movements of equities.

“The screening methodology for stocks is designed to ensure compliance with Sharia laws and principles of Islamic finance” the company explained.

Companies involved in conventional finance (conventional banking, insurance, financial services, or any other interest-related activity), alcohol, pork-related products and non-Halal food production, entertainment (casinos, gambling and pornography) ,tobacco , weapons, arms and defense manufacturing will be filtered out as non-Sharia compliant shares.

source - www.dailymirror.lk

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