In order for PSE to encourage more Muslim brothers to invest in the stockmarket and choose companies that are Shariah-compliant. Only 47 publicly-listed Philippine companies made it to the Shariah-compliant list, that strictly excluded businesses related to alcohol, tobacco, gambling and those that earn through interest rates.
PSE partnered IdealRatings to screen the listed companies in accordance with the Accounting and Auditing of Islamic Financial Companies (AAOIFI) standards for Shariah compliance. Shariah compliance screening excludes companies with businesses in conventional interest based lending, financial institutions, pork, alcohol, intoxicants, tobacco, arms and weapons, gambling, casinos, derivatives, pornography, music/entertainment and human stem-cell research.
It also includes screening the company’s financial ratios of cash and interest bearing investments not exceeding 30%, interest bearing debts not exceeding 30% and accounts receivables not exceeding 67% of market capitalization.
No comments:
Post a Comment