This page is the full methodology behind every Shariah compliance score on Namaa AI — the 4-layer engine, the AAOIFI-modelled thresholds, what happens when sources disagree, and the purification math. If a number isn't available for a stock, we say so — we never guess.
Every stock in the Namaa universe is checked by up to four independent layers. The most restrictive result always wins — never the most convenient one.
The primary data source: AAOIFI-modelled business-activity and financial-ratio screening across 40,000+ global stocks, refreshed daily.
Cross-checks whether the stock is currently held by any of India's SEBI-registered Shariah/ethical mutual funds. Absence from these holdings is not treated as non-compliance — many genuinely compliant stocks are simply too small for these funds to hold.
Namaa's own secondary filter, run directly against the six AAOIFI-style rules below using NSE-listed company fundamentals. This layer always runs, even if Zoya or AMFI data is unavailable.
For IPOs, borderline ratios, or cases where Layer 1 returns "unknown" or "doubtful," ORIS AI performs a focused re-verification using the same published fundamentals — it never overrides a clear NON_COMPLIANT verdict from another layer.
Modelled on AAOIFI Shariah Standard No. 21. A stock fails the screen the moment any one of these is breached.
| Rule | Threshold | What it checks |
|---|---|---|
| Primary business activity | Zero tolerance | No conventional banking, insurance, alcohol, tobacco, gambling, pork, weapons, or adult-content revenue. |
| Interest-bearing debt / market cap | < 33% | Total interest-bearing debt as a fraction of average market capitalisation. |
| Accounts receivable / total assets | < 49% | Cash and receivables shouldn't dominate the balance sheet. |
| Non-permissible income / revenue | < 5% | Interest income and other non-permissible revenue as a fraction of total revenue — this is also the figure used for purification. |
| Promoter pledge | < 20% | Shareholding pledged as loan collateral by promoters. |
If any two layers disagree, Namaa resolves to the most restrictive status: NON_COMPLIANT overrides everything, then DOUBTFUL, then UNKNOWN (treated the same as doubtful for trading purposes), and only when every layer agrees does a stock resolve to COMPLIANT. A conflict between layers is recorded and shown on the stock's scorecard — it is never hidden.
Even a compliant stock can carry a small sliver of non-permissible income (e.g. bank interest on idle cash). That sliver of any dividend received should be purified — donated to charity, not kept.
Suppose a stock's non-permissible income is 2.1% of total revenue (well under the 5% ceiling — it still passes the screen).
Purification per ₹1,000 dividend = 2.1% × ₹1,000 = ₹21
So if you received ₹1,000 in dividends from that stock this year, approximately ₹21 should be donated to purify the income. Namaa computes this figure per-holding on your Zakat & Purification page whenever the underlying non-permissible-income percentage is available — and marks it "data unavailable" rather than guessing when it isn't.
Run the free checker on your existing holdings, or create an account to screen the full NSE universe automatically.