S&P Adds Islamic Law-Compliant Index

Now, a Shariah BRIC country index

Standard & Poor's is adding to its index offerings aimed at Islamic investors who want to participate in the markets in a way that conforms to Shariah law. The S&P BRIC Shariah Index will include large companies from the BRIC countries--Brazil, Russia, India, and China--that "trade on developed market exchanges," including the NYSE, Nasdaq, London Stock Exchange, and Hong Kong Stock Exchange, and are Shariah-law compliant, according to an S&P announcement.

S&P had already launched versions of some of its other indexes that are screened for Shariah-law acceptability, including the S&P GCC Middle East Shariah Index Series, S&P 500, S&P Japan 500, and the S&P Europe 350.

For the S&P BRIC Shariah Index, companies "are monitored on a daily basis," for Shariah-law compliance, and must be part of the S&P/IFCI Index of BRIC countries. The Shariah-law compliance screenings exclude businesses that participate in certain types of trading of gold and silver; alcohol, financials, tobacco, pornography, pork, gambling, advertising and certain media.

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