Mumbai: TASIS - Taqwaa Advisory and Shariah Investment Solutions has been appointed as Shariah Advisor for Tata Group Shariah Mutual Funds including Tata Ethical Fund (TEF) and Tata Indian Shariah Equity Fund (TISEF).
Tata Ethical Fund (TEF) is a domestic fund whereas Tata Indian Shariah Equity Fund (TISEF) is an offshore fund.
"TASIS has signed an agreement with Tata Asset Management Limited (TAML) and Tata Asset Management (Mauritius) Limited (TAMML) to provide Shariah Consultancy Services to TEF and TISEF", TASIS said.
TEF is an open ended equity fund launched in the year 1996. The funds mobilized under TEF are invested in a diversified equity portfolio based on principles of Shariah. Its AUM has grown from Rs.200 crores to Rs.470 crores in the last three years. It is the only Shariah compliant fund in which charitable trusts are allowed to invest without attracting tax, TASIS claimed.
TISEF is an open ended fund domiciled in Mauritius. The fund invests in Shariah compliant equities or equity equivalent pf listed Indian companies. The current AUM of TISEF Mauritius is USD 17 million, TASIS said.
"Under the current agreement, TASIS is supposed to ensure that the investment and operations of TEF and TISEF are Shariah compliant", it added.
As on today Islamic Finance is a more than 2.3 trillion industry, emerging as one of the fastest growing areas of international finance. Of these, Islamic funds comprise about USD 92 billion.
In India, assets with Islamic funds accounts for about USD 80 million. Currently, Islamic banking and finance practices have a presence in over 75 countries across the world including those in Europe, North America, Asia and Africa.
Taqwaa Advisory and Sahriah Investment Solutions (TASIS) and Tata Asset Management (Mauritius) Limited (TAMML) initiative is expected to help in addressing a major market need as there are few viable and liquid investment options for Shariah conscious investment in India, TASIS said.
Generally, Muslims in India avoid conventional investment avenues as most of them involve interest - Riba, dealings. In addition, there is low awareness about investment in securities. The availability of options such as TEF would help this section of the society to become part of the mainstream financial system and hence contribute to the goal of cent percent financial inclusion.