Parsoli in talks with NSE for Islamic index

Buoyed by the success of the ParsoliI IBF.Net Equity (PIE) index a couple of years ago, the Ahmedabad-based financial services company, Parsoli Corporation Ltd, now is in talks with the National Stock Exchange (NSE) to launch an Islamic equity index.

The company hopes that the new index will materialise in next three months.

"India now needs an Islamic equity index, so that it can act as a benchmark for the NRI money. Dow Jones came out with an Islamic equity index and this has been doing great. For the moment though, the PIE is only for our customers. In future, we intend to make this available to all investors," said Zafar Sareshwala, chief executive officer, Parsoli Corp. About 80 per cent of the 1,200-odd customers, use the PIE index to invest in Shariah compliant scrips.

Parsoli, in collaboration with IBF-Net, had in 2003, compiled Parsoli-IBF.Net Equity (PIE) index, India's first and only Islamic Equity Index, comprising the most liquid stocks of 'Shariah' compliant companies registered on the NSE and the BSE.

The companies are screened every fortnight to determine their 'Shariah' compatibility.

Parsoli applies strict parameters to ensure that companies are Shariah compliant.

A company with the debts to market cap ratio not more than 33 per cent, cash recoverables less than 45 per cent of the networth, main income not from interest and not into manufacture of alcohol, leather or are not connected in any way to gambling are classified as a Shariah compliant company.

"The PIE index allows Islamic investors to get a ready list of Shariah compliant Indian companies. Islamic investors can thus use this information to trade in Shariah compliant stocks. The PIE index is monitored continuously to see if the stocks in it conform to the 'Shariah', failing which they are removed from the index," Sareshwala.

Meanwhile, Parsoli Corporation Limited, on Thursday announced a specially designed 'Islamic Wealth Management System' (IWMS) to tap the huge Muslim community in investment market. The IWMS launch was attended by noted film maker Mahesh Bhatt.

Announcing the launch of IWMS in Ahmedabad, Sareshwala, chief executive officer of Parsoli Corporation Limited said, "This system has Islamic stock broking, insurance, Islamic equity index as some of the tools for wealth maximisation. Our management thinks there is a tremendous opportunity to reward the muslim investors, its target audience, using some of these wealth management tools and get first mover advantage."