Student Name

Asim HameedFollow


Master of Science in Islamic Banking & Finance


Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Fall 2023


Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Institute of Business Administration, Karachi


The rapidly growing Islamic financial capital market segment globally emerging with the simplification concepts. There are numerous Shariah Stock Screening criteria available at the globe to ascertain the Shariah compliance status of the listed scripts, such as Dow Jones, AAOIFI, MSCI, FTSE, S&P and KMI in Pakistan. The assessment criteria mostly consist of qualitative and quantitative fundamentals. A script is Shariah compliant if it passes all the defined criteria of applicable screening methodology even though it is evident that the script contains some portion of Shariah non-compliance elements in their financials e.g. under KMI Shariah stock screening criteria, if Interest Bearing Debt to Total Assets ratio is 27% the stock will be considered Shariah compliant because it is below the 37% threshold. The stakeholders of scripts may get various benefit by adding value to the results of Shariah stock screening upon re-composition period by defining the scripts with simplified logics (Md. Hashim et al., 2017).

In this study using descriptive research methodology, it is proposed to have scoring mechanisms that will fold the KMI Shariah stock screening results into a simple & single meaningful percentage of Shariah compliance of the respective scripts. It will enable stakeholders to compare the scripts in an easy manner to make the decision of buy, hold or divest based on the level of Shariah Compliance at which the script stands upon recomposition period e.g. Shariah compliant script- POL, listed on KMI-30 Index is 95% Shariah compliant.

Document Type

Restricted Access

Submission Type

Research Project

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