The conceptual framework of sustainable Islamic finance with special reference to Shariah index in India

摘要

This study attempts to explore the conceptual framework of Islamic finance emphasising on Shariah index in India. To bring forth the conceptual framework of Islamic finance huge body of literature has been reviewed concerning the Shariah Islamiiah (Islamic teachings), historical background of Islamic finance, Shariah law, different components of Islamic finance, introduction to Islamic capital market and discussed the screening practices followed by the companies under different Industries. It is observed that there is a need to bring in certain amendments in the rules and regulations by the Indian government to pave the way for introducing various forms of Islamic finance as it may gain by the way of investments, financial inclusion of Muslims, upliftment of Muslims, agricultural development and so on. It is recommended to make diversification concerning to the avenue of investment by introducing more Shariah funds and ETF. Further, it is revealed that there is a difference in screening practices of different countries. Therefore, it is suggested to have uniform screening practices to hold the faith of investors on Islamic finance.