Security Investment Bank Limited (SIBL) has applied to become a Shariah-compliant investment bank following the issuance of comprehensive guidelines by the Securities and Exchange Commission of Pakistan (SECP).
The guidelines, known as the Guidelines for Offering Islamic Financial Services, 2023, were introduced after the Federal Shariat Court Judgment last year. These guidelines allow regulated entities to transform into full-fledged Islamic institutions.
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SIBL, a publicly listed company on the Pakistan Stock Exchange, currently operates as a non-banking finance company (NBFC) under the Companies Act, 2017, providing investment finance services.
To convert into a Shariah-compliant company, SIBL has publicly disclosed its intentions at the PSX and has applied to the SECP for a certificate as a Shariah-compliant company under Section 451 of the Companies Act, 2017, in accordance with the Shariah Governance Regulations, 2018.
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The conversion process will occur in multiple stages, with the SECP overseeing a smooth transition to minimize disruptions for SIBL’s customers. The decision to seek Shariah-compliant status aligns with the increasing demand for Islamic financial services and the constitutional requirement to eliminate Riba (interest) from the economy.
The SECP is committed to facilitating regulated entities that wish to convert to Shariah-compliant status in response to this growing demand.
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