CSE launches new indices

Chittagong Stock Exchange Limited (CSE) Sunday launched two new indices, CSE Shariah Index (CSI), and CSE-50 Benchmark Index (CSE-50). Developed by India Index Services and Products Limited (IISL), a subsidiary of the National Stock Exchange of India Limited (NSE, India) and a subsidiary of NSE Strategic Investment Corporation, the CSE-50 Index and CSE Shariah Index will help investors track the performance of the market and Shariah compliant securities respectively that form part of all listed companies on the CSE other than mutual funds and corporate bonds. Taking advantage of the expertise of neighbouring country India, CSE also engaged the services of India-based Taqwaa Advisory and Shariah Investment Solution (TASIS) to design the underlying Shariah framework of the index, a process which took six months to complete. Employing a two-step screening approach, business screening and financial screening, TASIS formulated the Shariah framework using five years’ worth of data of the companies listed in the Bangladesh capital market, according to a statement.