The PSE Softens its Shariah Guidelines

The Philippine Stock Exchange Inc (PSE) has issued a memorandum in line with its amended Shariah Rulebook, adjusting its standards for the evaluation of businesses' conformity with Shariah principles relating to Islamic finance and eliminating certain previously placed restrictions. According to the PSE, these measures have been taken to align its Shariah guidelines with the Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI) Shariah Rulebook.

As per the recent amendments, securities of hotels that earn revenues from providing lodging to its customers will be considered as Shariah-compliant while securities of any hotel generating more than 5% of its revenue from the sale of pork, alco...