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2. TYPES OF SCREENING METHODS BY SECURITIES COMMISSION, MUSLIHA BINTI MOHD…
2
. TYPES OF SCREENING METHODS BY SECURITIES COMMISSION
Quantitative
Compute the contribution of non-permissible activities and compare with group revenue and group profit before tax : 5% and 10%
Compute the financial ratios (<33%) such as Deb/Total Assets and Cash and Cash Equivalent/Total Assets.
Qualitative
Evaluating the status of Shariah-approved securities are that the companies are not involve in the following core activities.
Financial services based on riba (interest)
Gambling
Sale of non-halal products
Conventional insurance
sale of tobacco-based products
Stock broking or share trading in non-Shariah approved securities
Other activities deemed non-permissible according to Shariah
5% Benchmark
Conventional Banking
Conventional Insurance
Gambling
Liquor and liquor-related activities
Pork and pork-related activities
Non-halal food and beverages
Interest income from conventional accounts and instrument
Tobacco and tobacco-related activities
20% Benchmark
Hotel and resort operations
Share trading
Stockbroking business
Rental received from Shariah non-compliant activities
Any other activities as determined Shariah non-compliant by the SC
MUSLIHA BINTI MOHD ZAHID (012019070640)