Islamic and conventional insurance to be separated
In Bangladesh, the Insurance Ordinance 2008, approved last month, will allow Islamic insurance, but no company will be permitted to do both Islamic and conventional businesses simultaneously in a major change in the 70-year-old insurance laws.
Many insurance companies, which run both forms of practices, have to choose either Islamic or conventional insurance after the promulgation of the new law.
Out of 60 insurance companies currently in operation under the private sector, six are full-fledged Islamic insurance companies. Of these six, three deal with life insurance while the remaining are general insurance companies.
FTSE/JSE Shari’ah complaint index launched
On July 21, the South African securities exchange, JSE in partnership with FTSE Group, the global index provider, launched the FTSE/JSE Shariah Top 40 Index. The index will open up many opportunities for those interested in Shari’ah compliant investment, including the 850,000 strong South African Muslim community.
The FTSE/JSE Shariah Top 40 Index is a selection of Shari’ah compliant companies from the FTSE/JSE Shariah All-Share Index. The calculation of the index and the treatment of corporate actions are similar to the FTSE/JSE Top 40.
The FTSE/JSE Shariah Top 40 Index is suitable for the creation of financial products, such as index funds, warrants, certificates and Exchange Traded Funds.
The constituents of the FTSE/JSE Shariah Top 40 Index are screened by Yasaar Research Inc, a well-respected authority on Shari’ah law.