December 1, 2013
PSE GUIDELINES ON SCREENING OF SECURITIES FOR SHARIAH COMPLIANCE
1. Overview, Scope and Limitations
The Philippine Stock Exchange (PSE) is one with the National Commission on Muslim Filipinos (NCMF) in its quest to increase the participation of Muslim Filipinos in nation building. Through its headship, the NCMF, together with the PSE and other capital market participants and regulatory agencies, discussed the framework by which Islamic finance may play a stronger role in Philippine capital market development.
For PSE to pave the way for Islamic equity investment opportunities, the listed equity securities must first be screened for Shariah-compliance as is practiced in other markets. Shariah law specifies the moral conduct by which Islamic followers are to engage in investments. Shariah-compliant equities, therefore, are listed companies whose activities conform to the Shariah doctrines. By PSE publishing the list of Shariah-compliant securities in its PSE website, Islamic investors are provided with easy access to research and assurance with respect to their compliance concerns. Apart from Muslim Filipino investors, Shariah-compliant companies may be accessed by an investor base to...
