White List

kaka · 1 White List Sat Aug 27, 2011 3:53 pm

kaka

Assistant Vice President - Equity Analytics

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White list of Amana is here.
http://amanaasset.com/whitelist.html

Slstock · 2 Re: White List Sat Aug 27, 2011 4:27 pm

Slstock

Director - Equity Analytics

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Can someone verify why some manufacturing stocks qualify while some others does not. Example LWL, CERA but Not RCL. Is it because RCL has ventured into other investments. Am interested to know the precedure behind this.

bakapandithaya · 3 Re: White List Sat Sep 17, 2011 9:38 pm

bakapandithaya

Vice President - Equity Analytics

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Others are haraammmmmmmmmmm

Antonym · 4 Re: White List Sat Sep 17, 2011 10:47 pm

Antonym

Vice President - Equity Analytics

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Under Islamic banking, the conditions for investing in shares are:
1. It is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shariah, such as companies manufacturing, selling or offering liquors, pork haram (prohibited) meat, or involved in gambling, night club activities, pornography, gold trading, advertising and media (with the exception of newspapers).
2. If the main business of the companies is halal (lawful), like automobiles, textiles etc, but they deposit their surplus amounts in an interest-bearing account or borrow money on interest, the shareholder disapprove such dealings.
3. If income from interest-bearing accounts is included in the income of the company, the proportion of such income in the dividend paid to the shareholder must be given to charity, and must not be retained by investor.
4. The shares of a company are negotiable only if the company owns some illiquid assets. If all the assets of a company are in liquid form, i.e. in the form of money, they cannot be purchased or sold except on par value, because in this case the share represents money only and the money cannot be traded in except at par.
5. Companies whose main activity is not un-Islamic but a part of their income is not purely Islamic or a minor part of it comes from un-Islamic activities are prohibited, for example hotel, sugar, entertainment etc.

gajaman pro · 5 Re: White List Sat Sep 17, 2011 11:32 pm

gajaman pro

Manager - Equity Analytics

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Antonym wrote:Under Islamic banking, the conditions for investing in shares are:
1. It is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shariah, such as companies manufacturing, selling or offering liquors, pork haram (prohibited) meat, or involved in gambling, night club activities, pornography, gold trading, advertising and media (with the exception of newspapers).
2. If the main business of the companies is halal (lawful), like automobiles, textiles etc, but they deposit their surplus amounts in an interest-bearing account or borrow money on interest, the shareholder disapprove such dealings.
3. If income from interest-bearing accounts is included in the income of the company, the proportion of such income in the dividend paid to the shareholder must be given to charity, and must not be retained by investor.
4. The shares of a company are negotiable only if the company owns some illiquid assets. If all the assets of a company are in liquid form, i.e. in the form of money, they cannot be purchased or sold except on par value, because in this case the share represents money only and the money cannot be traded in except at par.
5. Companies whose main activity is not un-Islamic but a part of their income is not purely Islamic or a minor part of it comes from un-Islamic activities are prohibited, for example hotel, sugar, entertainment etc.

well companies usually borrow money and have a certain ammount of debt for which they pay interest. how would you explain that?

ninja · 6 Re: White List Sun Sep 18, 2011 7:18 am

ninja

Senior Equity Analytic

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@Antonym + rep from me.
http://amanaasset.com/whitelist-criteria.html provides the yardstick used to categorize the stocks as white list stocks. It basically uses % in its formula in order to check the interest bearing loans