Wednesday, December 19, 2007

India's Brokers plan Shari'ah funds

Priya Nadkarni, Business Standard (India)

A slew of Indian brokerages including Mangal Keshav and Parsoli Corporation, which have recently sold equity to Gulf-based investors, are raising money through Shari’ah funds for investments in Indian stock markets. The Indian markets will witness a strong flow of petro-dollars in 2008, following up on the stake buys by several Gulf-based financial institutions this year ... “The potential in the Gulf countries is tremendous. Hardly any money has come into India till now. This, coupled with the fact that there are more Shari’ah compliant companies in India compared with Pakistan, Bangladesh, Indonesia and Malaysia, makes India an attractive destination,” said Zafar Sareshwala, chief executive officer, Parsoli Corporation ... BankMuscat also has plans to raise a $250 million Shari’ah-compliant India-specific fund. An executive from BankMuscat had said that the money would be raised primarily from Oman and Dubai. “Having started operations in Saudi Arabia, we will also look at the possibility of raising money from this market,” he said. The new fund would be managed by Mangal Keshav.

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