Key Takeaways
- • The Philippine Stock Exchange (PSE) is studying a Shari'ah-compliant index to expand Islamic investment offerings beyond simply screening listed companies, according to BusinessWorld Online.
- • PSE Chief Operating Officer Roel A. Refran said the central challenge is standardization: "The screening is the easy part. The hard part is, what are the standards?"
- • The benchmark could identify eligible companies and apply to both equities and Sukuk, or Islamic bonds structured to comply with Islamic law.
- • The exchange's existing screening relies on financial and nonfinancial criteria based on standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
- • Earlier in 2026, the Securities and Exchange Commission issued a memorandum circular setting registration, disclosure and reporting guidelines for Sukuk products.
Summary
The Philippine Stock Exchange, Inc. (PSE) is evaluating a Shari'ah-compliant index as it seeks to broaden its Islamic investment product range beyond screening listed companies, according to an official quoted by BusinessWorld Online. Speaking on a panel at the 2026 ASEAN Capital Markets Forum International Conference in Manila on Thursday, PSE Chief Operating Officer Roel A. Refran said participants broadly want a standard interpretation of Islamic investment criteria. "The screening is the easy part. The hard part is, what are the standards?" he said.
Mr. Refran said a Shari'ah-compliant index could identify eligible companies and act as a benchmark for investors seeking holdings that comply with Islamic principles. He added that clear inclusion standards would help create a more structured market for such investments. The exchange's current screening process draws on financial and nonfinancial criteria based on standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions.
The framework under consideration could apply to both equities and Sukuk, or Islamic bonds structured to comply with Islamic law. Mr. Refran cited sustainable finance and carbon markets as examples where classification systems help distinguish investment products based on defined criteria.
Investor demand will remain a key factor in determining which products and benchmarks the exchange develops. "In the end, you have to look at where investors are asking you to build something," he said, adding, "You don't always build something that becomes a blockbuster."
The initiative follows a Securities and Exchange Commission memorandum circular issued earlier this year that established guidelines for Sukuk products, covering registration, disclosure and reporting requirements. The regulator has also encouraged companies to consider issuing Shari'ah-compliant investment products.
Mr. Refran said a Shari'ah-compliant index could identify eligible companies and act as a benchmark for investors seeking holdings that comply with Islamic principles. He added that clear inclusion standards would help create a more structured market for such investments. The exchange's current screening process draws on financial and nonfinancial criteria based on standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions.
The framework under consideration could apply to both equities and Sukuk, or Islamic bonds structured to comply with Islamic law. Mr. Refran cited sustainable finance and carbon markets as examples where classification systems help distinguish investment products based on defined criteria.
Investor demand will remain a key factor in determining which products and benchmarks the exchange develops. "In the end, you have to look at where investors are asking you to build something," he said, adding, "You don't always build something that becomes a blockbuster."
The initiative follows a Securities and Exchange Commission memorandum circular issued earlier this year that established guidelines for Sukuk products, covering registration, disclosure and reporting requirements. The regulator has also encouraged companies to consider issuing Shari'ah-compliant investment products.
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