From screening to compliance strategies : the case of Islamic stock indices with application on "MASI"

Joint Authors

Kafou, Ali
Shakir, Ahmad

Source

Islamic Economic Studies

Publisher

Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)

Publication Date

2017-04-30

Country of Publication

Saudi Arabia

No. of Pages

30

Main Subjects

Economy and Commerce

English Abstract

The aim of this paper is to study the screening methodologies, as practiced by the mainstream Islamic stock market indices (ISI), through their application on the Moroccan All Shares Index (MASI).

Thus, the possibility of providing the Casablanca stock exchange with its own Sharī‘ah-compliant stock index will be studied.

First, the specific processing to construct ISI will be explained.

Then, the screening is performed based on the methodological rules set by the mainstream ISI.

The use of screens, as recommended by these indices’ Sharī‘ah committees, leads to different decisions about rejection or acceptance of stocks in the constructed index.

This leads, in turn, to a plurality of ISI even when created using the same starting investable universe.

Finally, compliance strategies were presented and applied to the MASI

Data Type

Conference Papers

Record ID

BIM-776570

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