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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Shariah Compliant Shares

Shariah Compliant Shares

+7
reyaz
realman
Junior investor
rtymia
TuskerLK
SpaceCab
marketsee
11 posters

Go down  Message [Page 1 of 1]

1Shariah Compliant Shares Empty Shariah Compliant Shares Wed Mar 30, 2011 10:22 am

marketsee

marketsee
Manager - Equity Analytics
Manager - Equity Analytics
Sri Lanka gets 'Shariah' compliant share list

Sri Lankan stock broker Lanka Securities has introduced a 'Shariah' compliant share list to meet the requirements of both local and foreign Islamic investors on the Colombo Stock Exchange.

The screening methodology for stocks is designed to ensure compliance with the Shariah laws and principles of Islamic finance, a statement said.

Lanka Securities, a joint venture between Pakistan's First Capital Securities Corporation, Bank of Ceylon and Merchant Bank of Sri Lanka, said the list will be reviewed on a weekly basis to capture the impact of the price movements of the equities.

"LSL Shariah Compliant Securities List has been designed and developed to be used as a basis of Shariah complaint equity investments at the CSE," it said.

Shariah forbids interest and making ‘money from money’ and encourages that wealth be generated through legitimate trade.

While Shariah compliant investment avenues are now becoming available in most countries, Sri Lanka has not seen large-scale development, the statement said.

Companies involved in several activities will be filtered out as non Shariah-complaint, Lanka Securities said.

These are conventional banking, insurance, financial services, or any other interest-related activity, alcohol, pork-related products and non-halal food production, packaging and processing or any other activity related to pork and non-halal food.

Entertainment like casinos, gambling and pornography, tobacco, weapons, arms and defense manufacturing are also excluded.

Lanka Securities said the remaining companies are then further screened on a financial basis.

It identified several financial ratios that must be met for companies to be considered Shariah-complaint.

Total interest and income from non-compliant activities should not exceed 5.0 percent of the total revenue and interest bearing debt must be less than 30 percent of the market capitalisation.

Also, interest earning deposits must be less than 30 percent of the market capitalisation, and accounts receivable, prepayments and cash must be less than 50 percent of the total assets.

New firms listed in the CSE it will be added to the list if they meet the criteria.

The financial data on which the list is based on will be updated quarterly when the companies release the interim financials.

Lanka Securities said the business and financial screeners have been identified looking at the industry best practices along with the guidance set by the Accounting and Auditing Organisation for Islamic Financial Institutions.

2Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Mar 30, 2011 10:26 am

marketsee

marketsee
Manager - Equity Analytics
Manager - Equity Analytics
‘Amana White List’ is the list of Shari’ah compliant companies listed on the Colombo Stock Exchange. To determine their eligibility for the ‘White List’, the stocks are screened to ensure that each meets the Shari'ah requirements for acceptable products, business activities, debt levels, and interest and other non-Shari’ah compliant income.



Methodology

Amana White List screening process begins with identifying whether the company’s core business is Halal. This process excludes any companies involved in grey areas in the perspective of Sharia’h. Such disqualifying businesses may include, but are not limited to

i. Alcohol

ii Tobacco

iii Pork and other Non-Halal meat products

iv Defence/weapons

v Conventional financial services (banking, insurance, etc)

vi Entertainment (hotels, casinos/gambling, cinema, pornography, music etc)



If a Company’s core business is Halal, but also includes a segment of income coming from Non-Halal activities, this income should not exceed 5% of total revenue for the group for it to be considered in the White List:



After screening for Company’s core business activity Secondly, we ensure that the company adheres to permissible financial ratios under the Sharia’h ruling. These ratios are evaluated on a monthly basis and the company’s financials are updated as per their quarterly financial reports.



According to the prescribed financial ratios, each of the following criteria must be fulfilled.

· Interest bearing debt must be less than 33.33% of the Company’s equity.

· Current Assets/Equity must not exceed 49%.

· Interest received and Non-Shariah compliant Income for the Company must not exceed 5% of total revenue.

· Equity constitutes of Share capital, Reserves, Minority Interest, Accumulated Profits/Losses


BUT AMANA DID NOT UPDATING THERE WHITE LIST
I HAVE NEW LIST IT HAVE MORE COMPANIES THAN AMANAS LIST

reyaz likes this post

3Shariah Compliant Shares Empty Shariah Compliant Shares Wed Mar 30, 2011 10:30 am

SpaceCab


Stock Analytic
Stock Analytic
Can please post your white list? thanks

4Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Mar 30, 2011 10:42 am

marketsee

marketsee
Manager - Equity Analytics
Manager - Equity Analytics
This list was updated on 30 june 2010

https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=1Ude4q8FUR_GHtwPEbRYmr62CCjMrpINM5b0lSOOUlj0aIKN2N_yTwRE71kn8&hl=en&authkey=COHi_q8P

and I heard RICH,HHL and some more PLC want to include in this list and also some new IPOs that are already listed Smile

5Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Mar 30, 2011 2:59 pm

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
it would be greatful if you can upload the list with values you considered and the respective ratios, preferabally in excel format.

thanks in advance

6Shariah Compliant Shares Empty Re: Shariah Compliant Shares Thu Mar 31, 2011 10:30 am

marketsee

marketsee
Manager - Equity Analytics
Manager - Equity Analytics
tinyman wrote:it would be greatful if you can upload the list with values you considered and the respective ratios, preferabally in excel format.

thanks in advance

I got this list from my broker (from Asia Securities)

7Shariah Compliant Shares Empty Re: Shariah Compliant Shares Tue Sep 22, 2020 3:57 pm

rtymia


Stock Trader
is this white list available? can anyone please provide the link?

8Shariah Compliant Shares Empty Re: Shariah Compliant Shares Tue Sep 22, 2020 4:33 pm

Junior investor

Junior investor
Manager - Equity Analytics
Manager - Equity Analytics
''If a Company’s core business is Halal, but also includes a segment of income coming from Non-Halal activities, this income should not exceed 5% of total revenue for the group for it to be considered in the White List:''

irony and hypocrisy

dayandacool, Baba2020 and rtymia like this post

9Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Sep 23, 2020 12:01 pm

realman


Stock Analytic
Stock Analytic
http://www.ft.lk/financial-services/I-Capital-Partners-launches-Sri-Lanka-s-Equity-White-List/42-705986

rtymia likes this post

10Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Sep 23, 2020 5:13 pm

reyaz

reyaz
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
This becomes useful to those who are interested Islam or who are providing services of stock trading in the CSE to foreign investors in the middle-east. There is an element of ethics to the process of generating the "White-List", not everyone can do this (Not every Muslim you meet anyway). The checks include, among many things, whether the company in question deals with Interest (Usury in capital and finance) and/or deals with consumables not permitted by Allah (for instance food is one category of consumables, and pork & Alcohol are few of many examples) and/or is the company in question, in the trade of forbidden activities-- Gambling and harmful sports are some examples. 

So just in case you get a white-list and it includes the name of a company that carries out anything not allowed by Shariah law, you know you have not got your moneys worth.

Baba2020 likes this post

11Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Sep 23, 2020 5:23 pm

sheildskye

sheildskye
Manager - Equity Analytics
Manager - Equity Analytics
@reyaz wrote:This becomes useful to those who are interested Islam or who are providing services of stock trading in the CSE to foreign investors in the middle-east. There is an element of ethics to the process of generating the "White-List", not everyone can do this (Not every Muslim you meet anyway). The checks include, among many things, whether the company in question deals with Interest (Usury in capital and finance) and/or deals with consumables not permitted by Allah (for instance food is one category of consumables, and pork & Alcohol are few of many examples) and/or is the company in question, in the trade of forbidden activities-- Gambling and harmful sports are some examples. 

So just in case you get a white-list and it includes the name of a company that carries out anything not allowed by Shariah law, you know you have not got your moneys worth.
Actually, already know the basics. But why are cigarettes\tobacco not halal?

Also why isn't Dialog in the list? aren't they eligible? they from a Muslim Country after all.

12Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Sep 23, 2020 5:32 pm

realman


Stock Analytic
Stock Analytic
for those who need white list 

please subscribe using below link 

 http://icp.lk/WhitelistSubscription.php

13Shariah Compliant Shares Empty Re: Shariah Compliant Shares Wed Sep 23, 2020 5:38 pm

reyaz

reyaz
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@sheildskye wrote:
@reyaz wrote:This becomes useful to those who are interested Islam or who are providing services of stock trading in the CSE to foreign investors in the middle-east. There is an element of ethics to the process of generating the "White-List", not everyone can do this (Not every Muslim you meet anyway). The checks include, among many things, whether the company in question deals with Interest (Usury in capital and finance) and/or deals with consumables not permitted by Allah (for instance food is one category of consumables, and pork & Alcohol are few of many examples) and/or is the company in question, in the trade of forbidden activities-- Gambling and harmful sports are some examples. 

So just in case you get a white-list and it includes the name of a company that carries out anything not allowed by Shariah law, you know you have not got your moneys worth.
Actually, already know the basics. But why are cigarettes\tobacco not halal?

Also why isn't Dialog in the list? aren't they eligible? they from a Muslim Country after all.
Cigarettes/ Tobacco is obvious-- it is harmful to health

As for Dialog, In 2013, when I was working in Amana Takaful there was an argument that telecom service providers including and not limited to Dialog, were providing internet services, hence providing entertainment with harmful sports and adult contemporary entertainment, which are also forbidden according to Hadith-- Examples (Holy book of Islam) set by our beloved Prophet Muhammad. But I dont know the latest stance of the Sharia Supervisory Board, whose members decides which companies should be included in the list.

14Shariah Compliant Shares Empty Re: Shariah Compliant Shares Thu Sep 24, 2020 12:36 am

dayandacool

dayandacool
Moderator
Moderator
@Junior investor wrote:''If a Company’s core business is Halal, but also includes a segment of income coming from Non-Halal activities, this income should not exceed 5% of total revenue for the group for it to be considered in the White List:''

irony and hypocrisy
Irony and Hypocrisy In deed. This white list is equal to hardcore name sake buddhists requesting to ban beef but keeps mum about other meat / fish.

when you want to eat, you make a Thalagoya out of a kabaragoya. no less no more!!! 

Disc- I'm a buddhist  Very Happy Very Happy Very Happy

judecroos likes this post

15Shariah Compliant Shares Empty Re: Shariah Compliant Shares Thu Sep 24, 2020 1:17 am

Master D


Manager - Equity Analytics
Manager - Equity Analytics
Shariah madness is too much all over the place.
Soon, there will be shariah complaint list for everything to make middle east idiots happy.

Inthikahb M Wazeer and judecroos like this post

Baba2020 dislikes this post

16Shariah Compliant Shares Empty Re: Shariah Compliant Shares Thu Sep 24, 2020 6:03 am

Inthikahb M Wazeer


Senior Equity Analytic
Senior Equity Analytic
@Master D wrote:Shariah madness is too much all over the place.
Soon, there will be shariah complaint list for everything to make middle east idiots happy.

Agree this is truly madness and unnecessary. I dont think then they can buy expo because they do freight and they could do logistics to import and export pork, alcohol.......
Then Hotel sector they serve alcohol and pork too😁😁

This is too much and crazy.

Baba2020 dislikes this post

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