The Nigerian Stock Exchange (NSE) has announced that the Shari’ah Compliant Index would be inaugurated on Monday, July 30.

NSE said that the plans followed their signing of a memorandum of understanding with Lotus Capital Ltd. for the development and management of a certified Shari’ah Compliant Index.

The Islamic Equity Index known as the ``NSE Lotus Islamic Index’’ (with the code NSE LII) will be for only companies that meet the principles of Shari’ah.

The NSE LII, which is the first index created to track the performance of Shari’ah compliant equities on the floor of the bourse, will increase the breadth of the market and create a benchmark for investments as the alternative non-interest investment space widens.

Osahon Aire, NSE’s Project Manager for the NSE LII launch, said that investment instruments like Exchange Traded Funds (ETFs) could be built on the Index which investors with a preference for ethical/Shari'ah compliant investments could invest in.

He said also that the inauguration would tactically aid the development of the market.

``The NSE Lotus Islamic Index would further illuminate the massive investment opportunities available to ethically minded investors, both in Nigeria and overseas. All the companies that would appear on the Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognised Shari’ah Advisory Board comprising renowned Islamic scholars,” Osahon said.

The Project Manager said that the inauguration of the Index was an exciting development that was in line with NSE’s mandate of broadening and deepening the Nigerian Capital Market.

The Lotus Capital was founded in June 2004 with the specific objective of meeting the investment needs of ethical individuals, businesses and organisations across West Africa.

It is a full-service of HalalInvestment Management Boutique, specialising in Shari’ah compliant Asset Management, Private Wealth Management Advisory Services and Financial Advisory Services.