FAQs

Question

How long does a company continue to be Shariah Compliant?

Answer

Compliance status (on the basis of a given audited annual report) of any company in the Shariah List, is valid for a maximum period of 3 years from the date of the report (if no later reports have come into the public domain till then); thereafter it is removed from the List, till later valid reports become available in the public domain. Hence, for example, confirmed Shariah status of a company on the basis of its report for the year 2019 is, normally, likely to change with the change of financial data available in the public domain in the new annual report for the year 2019-20, and the same will continue to be valid till the appearance in the public domain of the next later report, or till the actual date of the company’s report for the year 2022-23, whichever is earlier.

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