THE Philippine Stock Exchange, Inc. (PSE) added three securities to the list of firms compliant with Islamic guidelines on finance for the latest quarter ending March 25.

In a memorandum released on Monday, the PSE added Converge Information and Communications Technology Solutions, Inc., Global Ferronickel Holdings, Inc., and SPC Power Corp. to the list of Shari’ah-compliant securities.

The PSE conducts quarterly screenings on listed securities’ Shari’ah compliance to make investment opportunities in the local bourse inclusive to Muslim investors.

“The exchange engaged the services of IdealRatings, Inc. to screen listed companies in accordance with the standards for Shari’ah compliance as stipulated by the Accounting and Auditing Organization for Islamic Finance Institutions,” the PSE said.

Ideal Ratings specializes in checking securities for their compliance with Shari’ah law.

The screening process involves checking firms on their engagements with businesses in adult entertainment, alcohol, cinema, defense and weapons, financial services, gambling, gold and silver hedging, interest-bearing investments, music, pork, and tobacco.

Income earned by companies from these engagements must be less than five percent.

Firms also undergo a financial ratios screening. Cash or interest-bearing deposits and interest-bearing debt of a company should not go beyond 30% of its market capitalization.

A total of 57 firms passed the criteria, the same number of firms which passed the screening last quarter.

Companies bumped off the list were Concepcion Industrial Corp., Euro-Med Laboratories Phil., Inc., and Xurpas, Inc. — Keren Concepcion G. Valmonte