Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham

Shariah is an Islamic law derived from the divine revelation and practice of the prophet namely, al-Quran and al-Hadith. Shariah prohibits elements such as usury (riba’), gambling (maysir) and uncertainty (gharar). These elements are present in many conventional financial activities. For a Muslim, t...

Full description

Bibliographic Details
Main Author:	Ahmad Norisham, Eirfan Syamil
Format:	Student Project
Language:	English
Published:	Universiti Teknologi MARA, Selangor, Puncak Alam Campus 2018
Subjects:	Islam and economics Investment, capital formation, speculation Stockbrokers. Security dealers. Investment advisers. Online stockbrokers Finance, Islamic
Online Access:	http://ir.uitm.edu.my/id/eprint/23337/ http://ir.uitm.edu.my/id/eprint/23337/1/PPb_EIRFAN%20SYAMIL%20AHMAD%20NORISHAM%20ACI%20B%2018_5.pdf

id	uitm-23337
recordtype	eprints
spelling	uitm-233372019-03-04T09:09:13Z http://ir.uitm.edu.my/id/eprint/23337/ Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham Ahmad Norisham, Eirfan Syamil Islam and economics Investment, capital formation, speculation Stockbrokers. Security dealers. Investment advisers. Online stockbrokers Finance, Islamic Shariah is an Islamic law derived from the divine revelation and practice of the prophet namely, al-Quran and al-Hadith. Shariah prohibits elements such as usury (riba’), gambling (maysir) and uncertainty (gharar). These elements are present in many conventional financial activities. For a Muslim, this means getting involved indirectly in prohibited practices, which is considered as a grave sin. To tackle this problem, Shariah scholars have set some acceptable boundaries for companies to do their business activities and outline steps to purify the sinful earnings. Thus, the purpose of this paper is to compare the criteria used among Islamic Indices, specifically between the FTSE Global Islamic Index (FTSE) and the Dow Jones Islamic Market Index (DJIM) in screening a permissible company for investment purposes. A comparative analysis is performed to highlight the variances of the Shariah-compliant methods and principles practiced by these renowned institutions with the latest compiled data. The two controversial criteria examined are level of debt and level of liquidity of the company. This paper will discuss the criteria, processes as well as the matters involved in the screening for Shariah-compliant and. Two sets of business screens and financial screens are profiled separately to clearly examine the similarities and differences between the different methodologies. Some of these practitioners are more specific in their listing of Shariah-impermissible activities, while some are more general in allowing more businesses to be included as permissible. The majority of these users practice a two-tier method of screening which is qualitative and quantitative. Under the quantitative screen, the range of allowable threshold ratios on non-permissible criteria differs slightly between them. Universiti Teknologi MARA, Selangor, Puncak Alam Campus 2018 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/23337/1/PPb_EIRFAN%20SYAMIL%20AHMAD%20NORISHAM%20ACI%20B%2018_5.pdf Ahmad Norisham, Eirfan Syamil (2018) Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Islam and economics Investment, capital formation, speculation Stockbrokers. Security dealers. Investment advisers. Online stockbrokers Finance, Islamic
spellingShingle	Islam and economics Investment, capital formation, speculation Stockbrokers. Security dealers. Investment advisers. Online stockbrokers Finance, Islamic Ahmad Norisham, Eirfan Syamil Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham
description	Shariah is an Islamic law derived from the divine revelation and practice of the prophet namely, al-Quran and al-Hadith. Shariah prohibits elements such as usury (riba’), gambling (maysir) and uncertainty (gharar). These elements are present in many conventional financial activities. For a Muslim, this means getting involved indirectly in prohibited practices, which is considered as a grave sin. To tackle this problem, Shariah scholars have set some acceptable boundaries for companies to do their business activities and outline steps to purify the sinful earnings. Thus, the purpose of this paper is to compare the criteria used among Islamic Indices, specifically between the FTSE Global Islamic Index (FTSE) and the Dow Jones Islamic Market Index (DJIM) in screening a permissible company for investment purposes. A comparative analysis is performed to highlight the variances of the Shariah-compliant methods and principles practiced by these renowned institutions with the latest compiled data. The two controversial criteria examined are level of debt and level of liquidity of the company. This paper will discuss the criteria, processes as well as the matters involved in the screening for Shariah-compliant and. Two sets of business screens and financial screens are profiled separately to clearly examine the similarities and differences between the different methodologies. Some of these practitioners are more specific in their listing of Shariah-impermissible activities, while some are more general in allowing more businesses to be included as permissible. The majority of these users practice a two-tier method of screening which is qualitative and quantitative. Under the quantitative screen, the range of allowable threshold ratios on non-permissible criteria differs slightly between them.
format	Student Project
author	Ahmad Norisham, Eirfan Syamil
author_facet	Ahmad Norisham, Eirfan Syamil
author_sort	Ahmad Norisham, Eirfan Syamil
title	Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham
title_short	Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham
title_full	Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham
title_fullStr	Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham
title_full_unstemmed	Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham
title_sort	comparison of shariah stock screening methodology between malaysia and international / eirfan syamil ahmad norisham
publisher	Universiti Teknologi MARA, Selangor, Puncak Alam Campus
publishDate	2018
url	http://ir.uitm.edu.my/id/eprint/23337/ http://ir.uitm.edu.my/id/eprint/23337/1/PPb_EIRFAN%20SYAMIL%20AHMAD%20NORISHAM%20ACI%20B%2018_5.pdf
first_indexed	2023-09-18T23:10:31Z
last_indexed	2023-09-18T23:10:31Z
_version_	1777418771625934848

Comparison of shariah stock screening methodology between Malaysia and International / Eirfan Syamil Ahmad Norisham

Similar Items