Reliance Money, the retail broking arm of Reliance Capital Ltd, has joined hands with Parsoli Corporation to launch the country's first Shariah- compliant Portfolio Management Scheme for investors. The financial services firm of the Anil Dhirubhai Ambani Group (ADAG) has been offering innovative products, market research and broking services at much lower prices to attract day traders and long term investors.
The company plans to market these schemes extensively in India and West Asian Countries.
As per the terms of tie-up, Parsoli would work with Reliance Money to ensure compliance with Shariah Laws for the relevant schemes being launched by Reliance Money.
Islamic tenets, called Shariah, bar Muslims from investing in banks (because they earn money through interest which is haram or prohibited, according to the Quran). Investing in sectors such as alcohol, gambling and pornography is also prohibited.
Reliance Money, which helps clients invest in equities, derivatives and commodities, typically offers such services for amounts between Rs 5 lakh and Rs 75 lakh. It charges no money if the client earns less than 8%.
But if the client earns a return of 8-20%, the fee is 10% of the returns and if the earnings are more than 20%, the fee goes up to 20%.