Article

Sharia
February 07 , 2013

Sharia or shariah is the Islamic law addressing both moral code of conduct and religious rules of Islamists. The word sharia means path or way. Sharia is derived from two sources: the Quran and the examples set forth by the prophet Mohammed. Since Islam does not see the church and state as separate Sharia laws govern areas ranging from economics and politics to fasting and hygiene.

Sharia-compliant finance and investment is a concept fast catching up with financial institutions that want to tap markets in Islamic countries, especially in the Middle East. There are Islamic banks, Sharia indices in stock markets and sharia-compliant mutual funds. India has a couple of sharia-compliant mutual funds, Sharia indices on NSE and BSE and Sharia ETS and ETFs.

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