Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

‘DSEX Shariah Index’ to be launched today

download (1)Dhaka Stock Exchange (DSE) is set to launch a new index titled ‘DSEX Shariah Index’ from today (Monday, 20 January 2014) to increase investment by Islamic Shariah-based companies in the stock market.

“This is an effort to boost investment by the institutions or investors in the stock market that investors prefer Islamic shariah-based product for investment,” DSE President Ahasanul Islam told reporters at a press briefing at its office Sunday.

The Standard and Poor’s (S&P) Dow Jones Indices, a US – based financial services company, developed the new index applying its methodology.

The companies, that followed Islamic Shariah based, are likely to be included with this Shariah Index. The base point of DSEX Shariah Index will be 1,000, DSE president said.

“The people who did not want to make investment in the stock market, in absence of  Islamic product will now be encouraged to come in the market and make an investment,” said DSE President.

With this fund managers and investors from GCC (Gulf Cooperation Council) countries will enter in Bangladesh stock market, he said.

“With introduction of the DSEX Shariah Index, foreign investment especially from the GCC countries will now come in our market,” he added.

DSE directors Ahmad Rashid, Abdul Haque, Minhaz Mannan Emon, chief executive officer Swapan Kumar Bala, Bangladesh Insurance Association (BIA) president Sheikh Kabir Hossain and manager – product management, S&P Dow Jones Indices Mahavir Kaswa, were present among others in the press conference.

Mahavir Kaswa said listed stocks under the DSEX index will be eligible to be placed in, but after fulfilling certain conditions. Exclusion from DSEX will automatically exclude a company from the DSEX Shariah Index, he said.

He said the securities will be sorted out after screening by two ways-sector wise and accounting basis.

Companies engage in advertising and media, news or sports channel, newspaper, alcohol, cloning, tobacco, gambling and trading of gold and silver cannot be placed in the shariah index.

Even, he said, financial institutions except Islamic banks, Islamic financial institutions, Islamic Insurance companies will not be eligible.

Companies incorporated and managed in a completely shariah compliant manner, having a shariah supervisory board and doing transactions (business and financial) in accordance with shariah principle will be eligible, he said.

However a company’s debt situation compare to its average market capitalisation during last 36 months should be less than 33 per cent to be eligible, while the company’s account receivable compare to its average market capitalisation during last 36 months should be above 49 per cent.

If more than five per cent revenue of a company comes from non-compliant activities it cannot be placed in the DSEX Shariah Index, he added.

————————————-

Source: Financial Express

Share This Post