BSE, ISE Islamic equity indexes to open floodgates to a spate of offerings

By MUSHTAK PARKER | ARAB NEWS

Published: Jan 9, 2011 23:16 Updated: Jan 9, 2011 23:31

The launch over the last few weeks by the Bombay Stock Exchange (BSE) and the Istanbul Stock Exchange (ISE) of their debut equity indexes which comply with non-interest based Islamic investment principles is potentially a major development for the Islamic capital market and asset management industry.

India with the world’s largest Muslim minority of between 150 million to 200 million and Turkey with a population nearing 70 million, are both untapped markets for Islamic investment funds especially equities, exchange-traded funds (ETFs), exchange traded commodities (ETCs) and index-linked equity funds. These funds of course are not only aimed at Muslim investors but also at those interested in alternative ethical and socially-responsible investment products. Indeed, in India other faith groups including Hinduism, Buddhism, Sikhism and Christianity also share with Islam some of the views relating to usury, wanton speculation and market greed.
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