PSX seeks feedback on proposed Shariah trading regulations to launch dedicated compliant platform

The Pakistan Stock Exchange (PSX) has invited stakeholders to submit feedback on proposed Shariah Trading Regulations aimed at establishing a dedicated platform for fully Shariah-compliant securities trading.

According to a public notice, the proposal has been developed in line with constitutional provisions, the April 28, 2022, judgement of the Federal Shariat Court, and regulatory directives to eliminate riba from the financial system. The court had provided a five-year timeline for the eradication of riba from Pakistan’s financial framework.

PSX has proposed the creation of a segregated Shariah-compliant trading counter within the existing market structure. The segregation would be implemented through measures such as separating Shariah-compliant brokerage activities from conventional business, account-level designation, broker-level controls and system-level validations, without altering the core trading engine.

The exchange stated that the amendments were drafted following internal assessments by capital market infrastructure institutions, recommendations from the PSX Shariah Focus Group comprising Shariah scholars and practitioners, consultations with the Pakistan Stock Brokers Association, and concurrence from the Securities and Exchange Commission of Pakistan (SECP). The proposal also reflects practices adopted by other exchanges serving Shariah-focused investors.

PSX has proposed adding a dedicated chapter titled “Shariah-Compliant Securities Trading” to its regulations. The chapter outlines eligibility criteria for Shariah-compliant securities brokers, pre-trade validation requirements, and compliance with Shariah governance regulations and guidelines.

The initiative is also aligned with the SECP’s Strategic Action Plan for the Development of Islamic Finance in the Non-Bank Financial Sector, which mandates the exchange to introduce a mechanism for Shariah-compliant trading following stakeholder consensus.

PSX has invited market participants, investors and other stakeholders to review the proposed amendments and submit comments by March 02, 2026.