Make use of halal, move out of haram

Entry of Muslims into stock investments has been a point of worldwide debate for long. Though globally Islamic Banking and Finance and Sharia’s (according to Islamic rule) Investment has been growing at 10%, India lacked information on the religious sanction of such an investment.

Not to be left behind even the World Gold Council (WGC) together with Dubai Multi Commodities Centre (DMCC) launched fully Shariah-compliant Dubai Gold Shares with the intent to list them on the Dubai International Financial Exchange (DIFX).

Stock and commodity markets, mutual funds and other such investments were considered haram by the Muslims. The ‘haram’ income denotes the income, which comes from sources like alcohol, tobacco, porn related fields, pork, interest from exploitation, incomes from cheating, fraudulent and gambling.

Till now, firms like Parsoli Corporation were trying to woo the Muslim investors by show casing companies with ‘halal’ income. From one single branch, Parsoli has grown to 53 now. But even with these efforts, they have limited reach. It is with this purpose that they are tying up with Reliance Money to have more investors from not only Muslim community in India, the largest in the world outside any Islamic countries, but also from non-Muslims as well.

“Basically we are targeting those people who are into ethical investing. They could be Muslims or non-Muslims,” said Talha Sareshwala, CFO, Parsoli Corporation. “This alliance will help us reach to a vast majority not only in India but abroad too,” he told Commodity Online.

Commodities, he said, is in the next phase. But Futures trading or speculations does not come under the sharia law, delivery based system is what Parsoli is looking at.

It will also be a great opportunity for Reliance Money, according to Sudip Bandopadhyaya, Director and CEO of Reliance Money.

Reliance Money will manage the PMS (portfolio management services) of Sharia compliant investing avenues.