An Ahimsa Crisis: You Decide: Jain Stock Brokers Call For A Non- Violent Stock Index

September 8, 2014: A small but influential community of Jain securities traders is calling for a new stock index that matches their beliefs in non-violence and the sanctity of life. Jainism preaches respect for all living creatures. While Jains account for just one half of one percent of India’s massive population of 1.2 billion people, they make up a disproportionately high percentage of India’s stock traders, partly because their beliefs make it difficult to work on other professions.

Now that small investors are pouring money into Indian stocks, propelling the Sensex to new highs, some of the leaders of the Jain stock-trading community want to make their mark by creating an index that would make it easier for observant Jains to invest. The index would be made up exclusively of companies that don’t depend on violence to make money, its backers say. The exact components of any potential Jain index would have to be debated, but brokers say it won’t include companies that deal with meat, leather, pesticides or weapons. In the words of Motilal Oswal, Chairman of Motilal Oswal Financial Services Ltd. a Mumbai-based brokerage firm, “I think it’s a good idea and there will be a niche audience for this kind of product. Commenting on this D. R. Mehta, former chairman of the Securities and Exchange Board of India “I will support the idea of such an index because it will make Jains more comfortable with investing”.

While it is still unclear which shares should be included and which avoided, brokers said any Jain index would likely exclude stocks such as shoe maker Bata India Ltd., poultry company Venky’s (India) Ltd., Insecticides (India) Ltd. and even Jubilant Food Works Ltd., which operates the Domino’s Pizza chain in India. Jainism also bans smoking and drinking of alcohol so ITC Ltd., India’s biggest cigarette maker, and United Spirits Ltd., the country’s largest spirits producer, would also be out. Among the industries that may be allowed in the index are telecommunications, outsourcing, banking, traders said. That would mean phone companies such as Bharti Airtel Ltd., banks such as State Bank of India and maybe software companies including Tata Consultancy Services Ltd. could be part of the index. If launched, it will not be the first faith-based index. Islamic Countries do have Shariah indexes that are compliant with some Islamic beliefs. Islamic law doesn’t permit Muslims to invest in companies that profit from charging interest or the sale of goods that are deemed sinful like alcohol and tobacco.