Mumbai: German investment bank Baader Wertpapierhandelsbank AG has taken a 25-per cent stake in Parsoli Corporation, the only Indian firm involved in Islamic investments.

Parsoli Corporation Ltd, which has an office in Mumbai, has also opened two more offices in Ahmedabad even as Germany's third largest investment bank assumed the role of an investor in the company.

"Parsoli is keen to tap and promote the vast and untapped potential of Muslim investors in India. As of now very few Muslims contribute to the growth in stock exchange but we foresee a change in that with the introduction of Shariat-compliant stocks," Sareshwala, CEO and managing director of Parsoli, said.

Muslims, who avoided investing in the stock markets due to charging of interest being proscribed by Islam, will now be able to buy Shariat-compliant stocks, he said. Shariat-compliant stocks refer to investments in those companies in which a Muslim is not forbidden to invest as per the Shariat.

Zafar Sareshwala's affluent Gujarati Muslim family had distributed lakhs of rupees to the poor in Islam-mandated zaqat donations before the Gujarat riots made him eligible to receive alms himself. Today, his financial services and travel company is valued at Rs70 crore.