KARACHI, Oct 29 (APP): Pakistan Stock Exchange (PSX) on Thursday launched Shariah-Compliant Trading Counter after the Securities and Exchange Commission of Pakistan (SECP) approved the Shariah Trading Counter Regulations. Retail and institutional investors now have a dedicated end-to-end ecosystem for Islamic investing.
The launch was marked with a Gong Ceremony, attended by representatives of SECP, SBP, CDC, NCCPL and PSBA, along with Shariah scholars and the participating brokerage houses. Thirty-nine brokers have been onboarded to offer Shariah-compliant trading through Islamic windows. Two more brokerage houses are licensed as full-fledged Shariah-compliant brokers.
The Counter is governed by operational procedures and regulations prescribed by the Exchange and approved by the Commission. Trading is limited to Shariah-compliant equities, Government Ijarah Sukuk and Corporate Sukuk, and non-compliant securities are prohibited. Interest-based leverage products such as MTS are blocked, with Murabaha Share Financing (MSF) offered as the Shariah-compliant alternative. Short selling and derivatives trading are also not permitted. Investors can divest non-compliant holdings to purify their portfolios.
In addition, a new Shariah Portal on the PSX Data Portal lists every Shariah-eligible stock and Sukuk.
Investors open accounts, including Sahulat Accounts, through a Shariah-compliant Customer Relationship and Risk Disclosure Document.
“By providing a dedicated trading environment supported by system-based compliance controls, this initiative enhances investor confidence, improves accessibility to Islamic investment opportunities, and further strengthens the country’s Islamic capital market ecosystem,” said Farrukh H. Sabzwari, MD & CEO, PSX.
He noted that investor accounts have passed 650,000, with Millennials and Gen Z driving much of the new participation. He added that the platform is expected to draw more investors from Pakistan’s predominantly Muslim population.
Imtiaz Haider, Commissioner, SECP, added: “With a significant proportion of listed equity securities and mutual fund assets already Shariah-compliant, this initiative will help broaden market participation, create new opportunities for investors and the brokerage industry, and further strengthen investor confidence in Shariah-compliant investment options.”
Dr. Tariq Naseem, Head of Islamic Finance, SECP, outlined the next steps, including expanding digital retail Sukuk,
introducing Shariah-compliant tools for liquidity and risk management. Lastly, strengthening the legislative framework for Islamic financial services.
Source: APP (Associated Press of Pakistan)
