The Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper proposing measures to promote Shariah-compliant intermediaries in the capital market.
According to a news release by the SECP, the paper is in line with the broader objective of the SECP to facilitate the provision of Shariah-compliant services within its regulated sectors.
The paper proposes a phase-wise approach for Shariah-compliant institutional investors to route their business through Shariah-compliant brokers based on a plan to be prepared by their respective boards of directors.
In addition, the paper encourages Islamic financial institutions, including providers of Islamic window services, to utilise Shariah-compliant intermediaries for takaful and investment purposes in situations where they are not obligated to do so.
Other proposed measures include creating a specific category for Shariah-compliant intermediaries for greater visibility on the Centralized Gateway Portal and a dedicated list of Shariah-compliant asset management companies on EMLAAK Financials.
In order to facilitate Roshan Digital Account (RDA) clients, creating a separate category of Shariah-compliant intermediaries on the websites and mobile apps of Islamic banks may also be explored in coordination with relevant stakeholders.
