Bombay Stock Exchange (BSE) and S&P Dow Jones Indices announced the launch of the S&P BSE 500 Shariah index, the first new index resulting from the strategic partnership formed between the two companies in February of this year.
The S&P BSE 500 Shariah index was designed to represent all Shariah compliant stocks of the broad based S&P BSE 500 index. The S&P BSE 500 consists of 500 of the largest, most liquid Indian stocks trading at the BSE. The S&P BSE 500 represents nearly 93% of the total market capitalization on the BSE and covers all 20 major industries of the economy.
“We are delighted to see the launch of the first joint product to come out of the partnership between BSE and S&P Dow Jones Indices,” says Ashishkumar Chauhan, MD & CEO of BSE. “The product will serve an important role in measuring this segment of the market.”
“This is an exciting landmark moment for our partnership, which aims to provide market participants with the relevant and transparent index solutions needed to gauge the performance of various market sectors while facilitating access to the world’s financial markets,” says Alka Banerjee, Managing Director of Global Equity Indices at S&P Dow Jones Indices. “The S&P BSE 500 Shariah index meets the need for an investable benchmark in India to gauge the performance of some of the most widely followed Shariah compliant stocks trading at the BSE.”
Shariah is Islamic canonical law, which observant Muslims adhere to in their daily lives. Shariah has certain strictures regarding finance and commercial activities permitted for Muslims.
S&P Dow Jones Indices has contracted with Ratings Intelligence Partners (RI) to provide the Shariah screens and to filter the stocks. Ratings Intelligence Partners is a London/Kuwait-based consulting company specializing in solutions for the global Islamic investment market. Its team consists of qualified Islamic researchers who work directly with a Shariah Supervisory Board. It is continually working with regional banks to create Shariah-compliant equity products and expand investment offerings.
BSE and S&P Dow Jones Indices announced on February 19, 2013, a strategic partnership to calculate, disseminate, and license the widely followed suite of BSE indices. The partnership brings together BSE’s closely watched India index suite, which includes the SENSEX, with S&P Dow Jones