Abstract
The study aims to compare and critically
evaluate the stock screening practices between Bangladesh and Malaysia. The
study is descriptive in nature. Secondary data is utilized and collected from
the books, standards, journal articles and relevant publications. It is found
that exchanges of both countries differ in formulating ratios, denominators,
numerators and in determining benchmark. A stock can be categorized as Shari’ah
compliant in Bursa Malaysia, but may be non-Shari’ah compliant in Dhaka Stock Exchange
(DSE), and Chittagong Stock Exchange (CSE). Though, Malaysia observes the same
guidelines throughout the country, but this is not the case for Bangladesh. A
stock may be considered Shari’ah compliant in DSE but not in CSE and vice
versa. After analyzing, it is clear that DSE and CSE may improve their ratios
and it is also advisable to use single methodology at least in one jurisdiction
to avoid the confusions among masses. The findings of the study will help the
authority to look at the deep insight of the issue and update the current
criteria.
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