- Provides the list of Shariah compliant stocks received from RI to subscribers (i.e. IDLC AML Shariah Fund) - Calculates the DSES Index based on the methodology provided by
Shariah Screening process
DSEX Shariah Index (DSES) serves as the Shariah-compliant free float adjusted broad market benchmark. The index is a subset of DSE Broad Market Index (DSEX) and includes all stocks that pass rules-based screens for Shariah compliance. S&P Dow Jones Indices provides the list of securities passing Shariah compliance screening to the DSE at each monthly rebalancing.
The DSES utilizes the Shariah screening methodology employed by S&P Shariah Family of Indices. S&P Dow Jones Indices has contracted with the Rating Intelligence (RI) to provide the Shariah screens and filter the stocks based on these screens. RI is a London/Kuwait based consulting company specializing in solutions for global Islamic Investment market.
RI works with a Shariah Supervisory Board, which is a board of Islamic scholars serving to interpret business issues and recommend actions related to business decisions for the indices. The members are:
- Dr. Muhammad Ali Elgari – PhD in Economics from the University of California, USA
- Dr. Abdul Sattar Abu Ghuddah – PhD in Islamic Law from Al Azhar University, Egypt
- Dr. Nazih Hammad – PhD in Islamic Law from the University of Cairo, Egypt
- Dr. Muhammad Amin Ali-Qattan – PhD in Islamic Banking University of Birmingham, UK
- Dr. Mohd Daud Bakar – PhD from the University of St. Andrews, UK
Shariah screening process
-Initially designed the methodology for the calculation of DSES Index -Cross checks the Shariah Index Calculation provided by DSE
- Provides the Shariah screens and filter stocks based on these screens to DSE every month - RI also has a Shariah Board to resolve any shariah issue
