INDIA: Benchmark Asset Management is to launch an Islamic open-ended exchange-traded fund (ETF), which will be the first of its kind in India. Subscriptions opened on Wednesday, the 4th February and will close on the 25th February.
The Shariah Benchmark Exchange Traded Scheme will be standardized against the S&P CNX Nifty Shariah Index, which was launched by Standard & Poor’s and India Index Services & Products. It has removed companies which are highly leveraged as Islamic-based equity investments do not allow investments in companies with excessive debts, high outstanding receivables and those without at least 25% of capital in fixed assets.
“There is a big Muslim population here. We hope they will be interested in investing in this fund especially since this is the first of its kind,” said Rajan Mehta, executive director of Benchmark Asset Management.