Screening Methodology & Standards
Haq Finance evaluates Indian equities listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) strictly adhering to contemporary Islamic jurisprudence standards established by global fiqh academies.
A company must operate in permissible (Halal) commerce. Any core business deriving primary revenue from prohibited sectors is immediately disqualified:
Following AAOIFI Standard No. 21, secondary financial filters are applied using a 30-day smoothed moving average market capitalization as the denominator:
Total Interest-Bearing Debt divided by 30-Day Average Market Cap must not exceed 33%.
Cash, interest-bearing deposits, and short investments divided by 30-Day Average Market Cap must not exceed 33%.
Non-operating interest and impermissible income divided by Total Revenue must remain under 5%.
When an equity qualifies as compliant, any incidental non-permissible income (such as treasury deposit interest) received via dividend distributions must be purified through charitable donation without expecting religious reward:
Haq Finance is an educational research and financial screening software platform. We are not a SEBI-registered Investment Adviser (RIA) or Research Analyst. The compliance evaluations provided do not constitute financial advice, buy/sell recommendations, or legal Shariah certifications. Users must exercise independent judgment and consult certified scholars or financial professionals prior to allocating capital.