ScreenIslamiQ, a four-stage screening process that identifies active listed companies which comply with Shari’ah guidelines, has been developed by IslamiQ’s globally renowned Shari’ah board.
The ScreenIslamiQ methodology will witness a major enhancement with the introduction of an additional filter to assess a company’s exposure to the receipt of interest. The introduction of an additional filter to ScreenIslamiQ, will limit a company’s cash in interest-bearing deposits or investments in interest-generating securities or instruments to 30% of its 12-month trailing average market capitalization. As a result of this change the second stage of the screening parameter will now not only involve an assessment of the company’s non-halal income, but has also been expanded to include its ability to generate such income.
The second change to the ScreenIslamiQ methodology is a refinement to its leverage- screening filter, with the interest-bearing debt of the company now measured against its market capitalization rather than total assets. This filter will therefore ensure that the interest-bearing debt of a company should not exceed 30% of its market capitalization.
“In line with the advise of our Shari’ah board, IslamiQ is intent on continuously enhancing the ScreenIslamiQ methodology by implementing an ever more comprehensive interpretation of the Shari’ah. The changes to ScreenIslamiQ will make it an even more discerning means of screening permissible equities, which will of course strengthen investor confidence in the long term credibility and applicability of the ScreenIslamiQ methodology,” commented, IslamiQ CEO, Dr Hasnita Hashim.
IslamiQ’s Shari’ah Board is composed of three internationally renowned Shari’ah scholars. Together with the IslamiQ’s Shari’ah Advisor, the Shari’ah Board develops rules and guidelines relating to Islamic financial products and services that are in accordance with Islamic principles. Members of IslamiQ’s Shari’ah Board are Justice Mohammad Taqi Usmani, Dr Abdul Sattar Abu Ghuddah, and Dr. Mohd. Daud Bakar, while its Shari’ah advisor is Dr Muhammad Imran Ashraf Usmani.
ScreenIslamiQ, which forms part of IslamiQ’s complete Islamic wealth management service, can be accessed on a subscription basis via www.IslamiQStocks.com. In order to offer ScreenIslamiQ to a wider market place, it is also licensed to other financial institutions such brokerages and fund managers.
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