Shariah Stock

At SenSage our trading solutions are targeted towards ethically conscious investors. Trading is encouraged based on Shariah-compliant stock adhering to the letter and spirit of Shariah. We follow the stock screening norms of Taqwa Advisory and Shariah Investment Solutions (TASIS) which are more stringent. We avoid any dealings in companies, whose business activities are related to pork, alcohol, gambling, financials based on interest (riba), pornography, tobacco and trading of gold and silver as cash on an ongoing basis.

After removing companies with non-compliant business activities the rest of the companies are examined for compliance in financial ratios, as certain ratios may violate compliance measurements. The 3 areas of focus are leverage, cash and the share of revenue derived from non-compliant activities. All these are subject to evaluation on an ongoing basis.

Debt to Total Assets <=25%
Interest Income +8% of Interest Based Investment to Total Income <=3%
Cash + Receivables to Total Assets <=90%

India has the largest number of Shariah-compliant stocks in the world. There are more than 1000 Shariah-compliant stocks listed on BSE and NSE. Of this more than 150 are continuously Shariah-compliant for more than 5 years. The largest sectors include Software, Automobiles, Capital Goods, Construction and Infrastructure, Drugs and Pharmaceuticals, Consumer Durables, FMCG, Telecommunication, Oil and Gas.

If you are a DIY equity investor you can choose to subscribe the Shariah list on payment of an annual subscription for monthly compliance updates. Alternatively, you can check the Shariah-compliance status of scrip of your choice.

 

Shariah Stock - Compliance Check

Minimum Rs.100
Rs. 25 per company