Shariah - Compliant Screening Practices in Malaysia

Mohamed Azam Mohamed Adil; Catherine S. F. Ho; Mansor Md. Isa; Ezani Yaakub; Mohammad Mahyuddin Khalid

doi:10.12816/0009756

Article Details

Shariah - Compliant Screening Practices in Malaysia

Authors:

Mohamed Azam Mohamed Adil | Catherine S. F. Ho | Mansor Md. Isa | Ezani Yaakub | Mohammad Mahyuddin Khalid

Publisher:

International Institute of Advanced Islamic Studies

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

Islam and Civilisational Renewal 2013 vol.4 Issue 3, pp.330-348

Document Type:

Article

Publication Date:

7/2013

Document Language:

English

Document ID (Org No.):

59805

Frequency:

Quarterly

pISSN:

13940937

DOI:

10.12816/0009756

Descriptors:

Abstract:

 This study reviews twenty-eight users of Islamic equity screeningin Malaysia based on the most recent information collected in 2012. Exceptfor the Securities Commission and two index providers, the rest of the usersare mutual fund companies. Our review indicates that, with few exceptions,the majority of the local screening users are following the benchmarks setby the Securities Commission of Malaysia, in which only industry screeningis applied to separate Shariah compliant from non-compliant companies.A few users, however, employ a two-tier quantitative approach in additionto the qualitative screening. The qualitative screening removes companieswhose main businesses are Shariah non-compliant. Companies with mixedactivities are then subject to quantitative screenings in which non-compliantcontributions are measured against applicable benchmarks. The SecuritiesCommission is scheduled to have in place a two-tier quantitative screeningmethod which is more in line with international practices by the end of 2013.

Article Details

Shariah - Compliant Screening Practices in Malaysia

Authors:

Mohamed Azam Mohamed Adil | Catherine S. F. Ho | Mansor Md. Isa | Ezani Yaakub | Mohammad Mahyuddin Khalid

Publisher:

International Institute of Advanced Islamic Studies

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

Islam and Civilisational Renewal 2013 vol.4 Issue 3, pp.330-348

Document Type:

Article

Publication Date:

7/2013

Document Language:

English

Document ID (Org No.):

59805

Frequency:

Quarterly

pISSN:

13940937

DOI:

10.12816/0009756

Descriptors:

FINANCIAL MARKET

SHARES

DIVIDENDS

ISLAMIC LAW

PROVISIONS OF SHARIA

INVESTMENT TRUSTS

CORPORATIONS

MALAYSIA

Issues

Article Details

Authors: Mohamed Azam Mohamed Adil | Catherine S. F. Ho | Mansor Md. Isa | Ezani Yaakub | Mohammad Mahyuddin Khalid

Publisher: International Institute of Advanced Islamic Studies

Main Topics: Islam, Bábism & Bahá"í Faith

Journal: Islam and Civilisational Renewal 2013 vol.4 Issue 3, pp.330-348

Document Type: Article

Publication Date: 7/2013

Document Language: English

Document ID (Org No.): 59805

Frequency: Quarterly

pISSN: 13940937

DOI: 10.12816/0009756

Descriptors:

Issues

Authors:

Mohamed Azam Mohamed Adil | Catherine S. F. Ho | Mansor Md. Isa | Ezani Yaakub | Mohammad Mahyuddin Khalid

Publisher:

International Institute of Advanced Islamic Studies

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

Islam and Civilisational Renewal 2013 vol.4 Issue 3, pp.330-348

Document Type:

Article

Publication Date:

7/2013

Document Language:

English

Document ID (Org No.):

59805

Frequency:

Quarterly

pISSN:

13940937

DOI:

10.12816/0009756