IslamicFinance.de

Malaysia is tightening rules for the $307 billion of stocks now deemed in compliance with Shariah law as it seeks to attract more investment from overseas Muslims. The Securities Commission will require companies to limit debt and cash that don’t conform to Koranic principles to less than 33 percent of total assets to qualify for Shariah listing, from no provision previously. The regulator will publish a revised list of equities next month from the current 801 that comply with religious tenets. The new regulations put the nation on a par with the conditions needed for inclusion in the Dow Jones Islamic Market World Index, which has a market capitalization of $14.9 trillion.