KSIDC Joins hand with Cheraman Financial Services Limited

12 April 2013
Kochi

Kerala State Industrial Development Corporation (KSIDC) has partnered with Cheraman Financial Services Limited, a Kochi-based Islamic fund. KSIDC has 11 per cent share in the Rs. 250 crore fund which is a shariah-based entity aimed at funding selected sectors.

Cheraman is the new avatar of the Al Baraka fund proposed by KSIDC two years ago. The Al Baraka initiative was intended to mobilise funds from Muslim expatriates, mainly from the Gulf countries, and utilise it for industrial development projects in the State. It is also understood to be the first of its kind in the country.

RBI Governor D. Subbarao, during his recent visit to the city to declare Ernakulam as a fully banked district, had responded to the issue, stating that the Banking Regulation Act did not permit Islamic banking in the country. He had also said that alternative modes were available for raising funds.Cheraman has received the go-ahead from the Securities and Exchange Board of India (SEBI) and has been registered as a trust, according to a spokesman of the company.

Source – http://www.thehindu.com/news/cities/Kochi/ksidc-partners-with-islamic-fund/article4607182.ece

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