Buoyed by the success of the Parsoli-IBF.Net Equity (PIE) index a couple of years ago, the Ahmedabad-based financial services company, Parsoli Corporation Ltd, is now in talks with the National Stock Exchange (NSE) to launch an Islamic equity index.
The company hopes that the new index will materialize in the next three months.
“India now needs an Islamic equity index, so that it can act as a benchmark for the NRI money. Dow Jones came out with an Islamic equity index and this has been doing great. For the moment though, the PIE is only for our customers. In future, we intend to make this available to all investors,” said Parsoli CEO Zafar Sareshwala. He added that about 80% of the 1,200-odd customers, use the PIE index to invest in Shariah compliant scripts.
Parsoli, in collaboration with IBF-Net, had in 2003, compiled Parsoli-IBF.Net Equity (PIE) index, India’s first and only Islamic Equity Index, comprising the most liquid stocks of Shariah compliant companies registered on the NSE and the BSE. The companies are screened every fortnight to determine their Shariah compatibility.
A company with the debts to market capital ratio not more than 33%, cash recoverables less than 45% of the net worth, main income not from interest and not into the manufacturing of alcohol, leather or are not connected in any way to gambling are classified as Shariah compliant.
Last week also saw Parsoli announce a specially designed ‘Islamic Wealth Management System’ (IWMS) to tap the huge Muslim community.
Announcing the launch of IWMS in Ahmedabad, Sareshwala, said: “This system has Islamic stock broking, insurance and Islamic equity index as some of the tools for wealth maximization. Our management thinks there is a tremendous opportunity to reward the Muslim investors, its target audience, using some of these wealth management tools and get first mover advantage.”
Source: www.IslamicFinanceNews.com |
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