Kuala Lumpur/Jakarta: Indian Islamic property and stock funds are starting to give the world’s third largest Muslim population Shariah investment options in a nation where banking in line with the Koran’s tenets is prohibited.
Taqwaa Advisory and Shariah Investment Solutions Pvt. Ltd, a Mumbai-based consultancy, is setting up the Rs.250 crore fund on behalf of a company backed by the Kerala government, director Shariq Nisar said in an interview on Wednesday. Secura Investment Management (India) Pvt. Ltd manages the country’s only other such real estate vehicle. India has two Shariah equity funds and BSE Ltd, the stock exchange operator, introduced a new Islamic share index on 2 May.
India hasn’t made any progress on allowing Islamic banking since the central bank formed a committee to look at the issue in 2005, while no sukuk have been issued in the country due to a lack of legal recognition. The South Asian nation that has the highest sovereign bond yields among the 10 major Asian emerging markets is unlikely to introduce legislation in the near term as such a move may anger the 81% Hindu majority, according to Kuala Lumpur-based consultancy Amanah Capital Group Ltd.
source : LiveMint