Securities Screening for Shari’ah-Compliance: A New Framework for Food Manufacturing Companies

10 Pages Posted: 6 Oct 2010 Last revised: 30 Mar 2012

See all articles by Rashid Ameer

Rashid Ameer

IPU New Zealand Tertairy Institute

Radiah Othman

Massey University

Date Written: March 30, 2012

Abstract

This paper proposes a new framework for screening food manufacturing companies for Shari’ah compliance and investibility in the Islamic capital market. The paper reviews the current state of art in the screening methodologies, and through a critical review of current methodologies, highlights the problems associated with choice of parameters. We cite several shortcomings in the current screening methodologies and proposes a new screening framework for companies in the food manufacturing businesses based on the Halal input parameters and Human rights.This paper seeks to reproach fatalism of current screening methods and aims to align the selection of equity securities with broader teachings and philosophy of Islam. We propose a insightful and radical viewpoint on the development of screening method of securities for the Islamic capital markets.

Keywords: Islamic capital market, screening, Shari’ah compliance

JEL Classification: D63, D84

Suggested Citation

Ameer, Rashid and Othman, Radiah, Securities Screening for Shari’ah-Compliance: A New Framework for Food Manufacturing Companies (March 30, 2012). Available at SSRN: https://ssrn.com/abstract=1687464 or http://dx.doi.org/10.2139/ssrn.1687464

Rashid Ameer (Contact Author)

IPU New Zealand Tertairy Institute ( email )

57 Aokautere Drive
Fitzherbert
Palmerston north
New Zealand

Radiah Othman

Massey University ( email )

School of Accountancy
Palmerston North
New Zealand

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