Islamabad: As part of its agenda to promote Islamic financial markets in Pakistan, Securities and Exchange Commission of Pakistan (SECP) issued draft Shariah Governance Regulations 2023, primarily to remove bottlenecks in product development and simplify the Shariah screening criteria and stock screening process. Draft regulations, which have been made available for public comment aim to strengthen framework for Shariah-compliant businesses, Shariah-compliant securities and Shariah advisors.

Proposed regulations provide for complete process for construction of an Islamic index at stock exchange and introduces concept of Shariah supervisory boards. In addition, Shariah Governance Regulations 2018 and Shariah Advisors Regulations 2017 have been integrated to remove overlapping provisions and requirements.

Proposed regulations are framed in simple manner to provide greater clarity and simplicity to Shariah-compliant companies, Shariah-compliant securities issuers, stock screening participants, Shariah advisors and other connected parties. By promoting Shariah-compliant financial products, proposed regulations will contribute to constitutional goal of eliminating Riba and Islamising economy.

SECP also intends to organise stakeholder consultation sessions in Karachi and Lahore in collaboration with Pakistan Stock Exchange, Federation of Pakistan Chambers of Commerce and Industry and other stakeholders.

Published in The Daily National Courier, March, 04 2023

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