India is one of the most Shariah-compliant countries in the world. Out of all listed stocks at NSE (over 1,300) over 400 are compliant with Shariah norms.

Islamic MFs Enter Shariah-Compliant Products India is one of the most Shariah-compliant countries in the world. Out of all listed stocks at NSE (over 1,300) over 400 are compliant with Shariah norms. There is no doubt that Indian Mutual Funds are showing increasing interest in Shariah-compliant products. In fact, one of them has already applied for a Shariah-compliant mutual fund. Sebi is reported to have sent the application to the Ministry of Finance for their comments.

If this happens, it will be the `first-of-its-kind' product in India for domestic residents. Earlier, all such products were either available to the non-residents only or structured and marketed without any claim of Shariah-compliance. I believe, launching of Shariah-compliant mutual funds will help the Indian market a great deal. It will bring another source of liquidity to the market, which hitherto has not been available due to Muslims' reluctance to invest in the stock market. This will also help increase the awareness of Shariah-compliant investment opportunities in India. I have proved in my research that India is one of the most Shariah-compliant countries in the world.

In fact, the findings put India at the top both in terms of the number of available stocks as well as in terms of market capitalization. Only Malaysia comes somewhere near to India and to some extent Pakistan; rest of the countries are far behind. This includes all Muslim countries. The inherent strength of this lies in India's strong economic performance, which is expected to continue for at least 10-15 more years.

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