Securities Screening for Shari’ah-Compliance: A New Framework for Food Manufacturing Companies
10 Pages Posted: 6 Oct 2010 Last revised: 30 Mar 2012
Date Written: March 30, 2012
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: Suggested Citation