INVESTING IN INDIA The Shariah Way TASIS SHARIAH 50 INDEX

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2 INVESTING IN INDIA The Shariah Way TASIS SHARIAH 50 INDEX BASED ON EXTENSIVE RESEARCH AND PATH BREAKING METHODOLOGLY

3 Outline About the Organizations BSE TASIS About the Index Index performance (Table & Graph) Sectoral Breakdown Shariah Screening Process Business Financials How to Benefit from the Opportunity Retail Investors Financial Service Providers Foreign Investors

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5 The Bombay Stock Exchange (BSE) An ISO 9001:2000 Company, the Bombay Stock Exchange is oldest stock exchange in Asia (established in 1875) It is synonymous with India s economy and corporate performance Among the top five stock exchanges in the world and largest in terms of number of listed stocks (4998) Market Capitalisation USD 1.63 trillion

6 Taqwaa Advisory & Shariah Investment Solutions [TASIS] India s premier Shariah Advisory institution, associated with all shariah compliant products available in the country till date Structured India s first Shariah compliant Mutual Fund Scheme (i.e. Taurus Ethical Fund) for Taurus Mutual Fund Structured India s first Shariah compliant pension plan (i.e. Pure Stock Pension Fund) for Bajaj Allianz Structured India s first Shariah compliant Venture Capital Fund Scheme (i.e. Secura India Real Estate Fund) for Secura Group, Kerala Shariah Advisor to Government of India owned GIC Re for Islamic Reinsurance (Re Takaful)

7 ABOUT THE INDEX: Best of Both the Worlds BSE -TASIS SHARIAH 50 is India s first Shariah Index launched by an Exchange. The first capped (8%) Index in India. Extremely suitable for sectoral diversification This index opens up avenues for investors across the globe to access to the Shariah compliant equities from India. Highly liquid and suitable options for shariah compliant investors looking to invest in high growth economies such as India. This index is specially suitable for Islamic Equity Funds, Islamic Exchange Traded Funds,Islamic Mutual Funds, Islamic Index Funds and other Ethical Funds.

8 1-Jan-08 1-Feb-08 1-Mar-08 1-Apr-08 1-May-08 1-Jun-08 1-Jul-08 1-Aug-08 1-Sep-08 1-Oct-08 1-Nov-08 1-Dec-08 1-Jan-09 1-Feb-09 1-Mar-09 1-Apr-09 1-May-09 1-Jun-09 1-Jul-09 1-Aug-09 1-Sep-09 1-Oct-09 1-Nov-09 1-Dec-09 1-Jan-10 1-Feb-10 1-Mar-10 1-Apr-10 1-May-10 1-Jun-10 1-Jul-10 1-Aug-10 1-Sep-10 1-Oct-10 1-Nov-10 1-Dec-10 1-Jan-11 1-Feb-11 1-Mar-11 Index Performance 1, BSE TASIS Shariah 50 Index Rebased BSE-500 Rebased SENSEX 1, Rebased Nifty Shariah Rebased CNX 500 Shariah 1,

9 Index Performance TRANS_DATE BSE TASIS Shariah 50 Index Rebased BSE-500 Rebased SENSEX Rebased Nifty Shariah Rebased CNX 500 Shariah Avg Daily Retruns 0.020% % % % % Volatility - (of Daily Log Returns) 1.71% 2.02% 2.10% 2.03% 1.95% Returns BSE TASIS Shariah 50 Index BSE-500 SENSEX Nifty Shariah CNX 500 Shariah YTD -6.48% -7.05% -5.43% -6.43% -6.98% 1 Year (31 March 10-11) 9.61% 7.48% 10.94% 5.43% 5.12% 2 Years (31 March 09-11) % % % 79.33% 93.43% 3 Years (31 March 08-11) 48.58% 20.79% 24.29% 10.43% 13.92% Since Iception 17.07% % -4.21% % % Voltality BSE TASIS Shariah 50 Index BSE-500 SENSEX Nifty Shariah CNX 500 Shariah YTD 1.06% 1.28% 1.33% 1.21% 1.15% 1 Year (31 March 10-11) 1.06% 1.29% 1.34% 1.22% 1.16% 2 Years (31 March 09-11) 1.27% 1.47% 1.53% 1.48% 1.40% 3 Years (31 March 08-11) 1.63% 1.90% 2.04% 1.95% 1.85% Since Iception 1.71% 2.02% 2.10% 2.03% 1.95%

10 Chemical & Petrochemical 2% Metals & Mining 5% Textile 3% Consumer Durables 1% Diversified 1% Power 0% Housing Related 6% Oil & Gas 20% Telecom 7% Healthcare 8% Thank You Transport Equipments 11% Info Techno 14% Capital Goods 11% FMCG 11%

11 Shariah Screening Process Business Screening: All companies engaged in non-compliant business are screened out Companies into alcohol, gambling, tobacco, financial services including insurance and stock broking, vulgar entertainment, hotels, resorts and foods and any other business which is harmful and injurious to society Financial Screening: All companies whose business is acceptable under shariah but they occasionally indulge in un-islamic means of raising finance or earnings incomes are further screened on the following parameters: 1. Total Interest Bearing Debt of the company should be less than 25% of its Total Asset 2. Interest income from all sources (including dividend) should be less than 3% of the total income of the company

12 How TASIS is different from other Shariah screenings? When it comes to Shariah compliance TASIS is more conservative than its peers. For example; On non-compliant Business: No compromise On non-compliant means: Most conservative Financials: Interest based Debt: Others allow up to 33% of Market Value Tasis not more than 25% of Total Asset Interest Income: Some do not put a check at all, most allow up to 5% and few even up to 10% of Total Income Shariah Monitoring: Purification: TASIS not more than 3% of Total Income Others not earlier than three months TASIS every month Most when receiving dividend (in other words if no dividend no purification) TASIS (per share purification methodology)

13 A comparative snapshot of TASIS VS other Screening Norms Business Financial Shariah Monitoring Purification Interest based Debt Interest Earnings Others No compromise Allow up to 33% of Market Value Some do not put a check at all, most allow up to 5% and few even up to 10% of Total Income Not earlier than three months Only when dividend received (In other words if no dividend no purification) TASIS No compromise Not more than 25% of Total Asset Not more than 3% of Total Income Every month Per share purification methodology (purification in all circumstances)

14 How to Benefit from the Opportunity Retail Investors: Daily information is available in real-time on BSE's website or other market data terminals (like Bloomberg) Investors that would like to purchase data pertaining to the index (which companies are compliant, index values, weights, etc.) can do so by contacting BSE/TASIS Investors should contact their brokers/asset managers to encourage them to create products utilizing the index Financial Service Providers Can start shariah compliant PMS, ETF or other structured products based on BSE TASIS Shariah 50 Index Foreign Investors Can invest in India s best Shariah compliant stocks through us

15 Bombay Stock Exchange India Ltd How to Contact us INDEX CELL P. J. Towers, Dalal Street Mumbai Phone: For more information about BSE TASIS SHARIAH 50 please log on to website: Taqwaa Advisory and Shariah Investment Solutions (P) Ltd TASIS 2 nd Floor, 23 Wood Street Bangalore Phone: info@tasis.in For more details about Shariah compliant products, services and shariah board please log on to website: Disclaimer: BSE and TASIS do not make any warranties or representations, express or implied, about the information contained in this presentation. In particular, both parties do not warrant or represent that the information is accurate, up-to-date, comprehensive, verified or complete. BSE does not accept liability for any error, omission or delay in the information or for any reliance placed by any person on the information. BSE and TASIS shall not be liable for any claims or losses of any nature, arising indirectly or directly from use of the material howsoever arising. -TASIS SHARIAH 50 INDEX

16 Shariah Index has received extensive press coverage in both domestic and international media -TASIS SHARIAH 50 INDEX

17 Shariah Index in Gulf Media Gulf News Khaleej Times Arab News -TASIS SHARIAH 50 INDEX