Dawood Equities seeks approval to launch Islamic Brokerage Window

Dawood Equities Limited has applied to the regulator for approval to commence Islamic Brokerage Window operations after receiving a Shariah opinion from Al Hilal Shariah Advisors (Pvt.) Limited, according to a notice issued to the Pakistan Stock Exchange on Thursday.

Dawood Equities said Al Hilal Shariah Advisors had issued a Shariah opinion in relation to the establishment of its Islamic Brokerage Window.

The Shariah advisory firm has been engaged to guide and support the company during the setup, advise on Shariah requirements, oversee the implementation process and provide ongoing Shariah oversight for continued compliance.

On the basis of the opinion, Dawood Equities has applied to the regulator for the required approval to begin Islamic Brokerage Window operations.

Dawood Equities was incorporated as a public limited company on May 3, 2006, and commenced commercial operations on October 3, 2006. The company is registered with the Securities and Exchange Commission of Pakistan as a broker and is a licensed TRE Certificate Holder of the Pakistan Stock Exchange.

According to the Shariah opinion, transactions through the Islamic Brokerage Window will be restricted to Shariah-compliant securities approved by the Shariah Advisor.

These approvals will be based on eligibility criteria and financial screening thresholds prescribed by the Securities and Exchange Commission of Pakistan under the Shariah Governance Regulations, 2023, along with other applicable rules, guidelines, circulars and regulatory orders.

The Islamic Brokerage Window will execute transactions in the ready counter, negotiated deals market or any other counter approved by the Shariah Advisor.

The framework bars transactions involving derivatives, futures, options or similar instruments unless the Shariah Advisor expressly approves a Shariah-compliant alternative.

The company will also be required to prevent clients using the Islamic Brokerage Window from engaging in short selling, blank selling or other Shariah non-compliant transactions.

Dawood Equities will provide only Shariah-compliant financing or leverage to clients of the Islamic Brokerage Window, either directly or through approved third-party arrangements.