ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Friday issued draft regulations with aim to strengthen Shariah compliant securities.
In a statement the SECP said that as part of its agenda to promote Islamic financial markets in Pakistan, it issued draft Shariah Governance Regulations, 2023, primarily to remove bottlenecks in product development and simplify the Shariah screening criteria and stock screening process.
READ MORE: SECP warns public against illegal non-banking financial companies
The draft regulations, which have been made available for public comment, aim to strengthen the framework for Shariah-compliant businesses, Shariah-compliant securities, and Shariah advisors.
The proposed regulations provide for a complete process for the construction of an Islamic index at the stock exchange and introduces the concept of Shariah supervisory boards.
READ MORE: SECP directs digital lending companies to shutdown multiple apps
In addition, the Shariah Governance Regulations, 2018, and the Shariah Advisors Regulations, 2017 have been integrated to remove overlapping provisions and requirements.
The proposed regulations are framed in a simple manner to provide greater clarity and simplicity to SCCs, SCS issuers, stock screening participants, Shariah advisors, and other connected parties. By promoting Shariah-compliant financial products, the proposed regulations will contribute to the constitutional goal of eliminating Riba.
READ MORE: SECP chairman, stakeholders discuss measures for capital market growth
SECP also intends to organize stakeholder consultation sessions in Karachi and Lahore in collaboration with the Pakistan Stock Exchange, the Federation of Pakistan Chambers of Commerce and Industry, and other stakeholders.
READ MORE: SECP company registration tops 182,598 by November 2022
