The Nigerian Stock Exchange (NSE) has inaugurated a Shari’ah compliant Index, “NSE Lotus Islamic Index (NSE LII).” The index followed an earlier memorandum of understanding (MOU) signed between NSE and Lotus Capital Ltd for the development and management of a certified Shari’ah compliant Index. The index will be used to track the performance of companies which complies with the principles of Shari’ah.
Speaking at the inauguration of the index, NSE Chief Executive Officer, Mr Oscar Onyema, said that it would track the performance of 15 stocks that meet the eligibility requirements of the Shariah Advisory Board. Onyema said the index would further deepen Nigerian bourse and increase the investment choice of investors.
He said the index has also provided a benchmark for moderating ethical investments and basis for the development of other financial instrument such as exchange traded funds, index-funds and mirror fund. Mrs Hajara Adeola, the Managing Director of Lotus Capital Halal Investment, said the index would boost the development of the capital market and the economy. Adeola said the first alternative index would increase the breadth of the market by contributing to the widening of the NSE alternative non-interest investment space.
Mr Osahon Aire, NSE’s LII Project Manager, said the investment instrument would illuminate the investment opportunities available to ethically minded investors. He said companies that would appear on the index had been screened by Lotus Capital Halal Investment, in accordance with the methodology approved by renowned Islamic scholars. Aire said the index inauguration was in line with the NSE’s mandate of broadening and deepening the market.
Lotus Capital was founded in 2004 with the objective of meeting the investment needs of ethical individuals, businesses, and organisations across West Africa. Halal Investment Management specialises in Shari’ah compliant Asset Management, Private Wealth Management Advisory Services and Financial Advisory Services.
