THE Philippine Stock Exchange, Inc. (PSE) is studying a Shari’ah-compliant index as it seeks to expand Islamic investment offerings beyond screening listed companies, an official said.
“The general ask from participants is that you should have a standard interpretation,” PSE Chief Operating Officer Roel A. Refran said during a panel discussion at the 2026 ASEAN Capital Markets Forum International Conference in Manila on Thursday. “The screening is the easy part. The hard part is, what are the standards?”
Mr. Refran said a Shari’ah-compliant index could identify eligible companies and serve as a benchmark for investors seeking investments that comply with Islamic principles.
He said establishing clear inclusion standards would help create a more structured market for Shari’ah-compliant investments.
The exchange’s screening process previously relied on financial and nonfinancial criteria based on standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions.
Mr. Refran said the framework could apply to both equities and Sukuk, or Islamic bonds structured to comply with Islamic law.
He cited sustainable finance and carbon markets as examples where classification systems help distinguish investment products based on defined criteria.
Mr. Refran said investor demand remains a key consideration in deciding 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. “You don’t always build something that becomes a blockbuster.”
Earlier this year, the Securities and Exchange Commission issued a memorandum circular that established guidelines for Sukuk products, including registration, disclosure and reporting requirements.
The regulator has also encouraged companies to consider issuing Shari’ah-compliant investment products. — Alexandria Grace C. Magno