SECP Launches Shariah Compliant Brokerage Segment For Stock Market
Pakistan has introduced a Shariah compliant brokerage segment to allow investors to directly invest in Shariah compliant shares, Sukuk and … Read More The post SECP Launches Shariah Compliant Brokerage Segment For Stock Market appeared first on ProPakistani .
The Securities and Exchange Commission (SECP) of Pakistan has launched a Shariah-compliant brokerage segment to enable Islamic investment in the capital market, according to a statement released on Wednesday. The SECP announced that 33 brokerage houses have initiated services through dedicated Islamic windows, allowing investors to directly invest in Shariah-compliant shares, Sukuk, and Islamic exchange-traded funds (ETFs).
The commission emphasized that funds utilized through these Islamic brokerage windows will be channeled through Islamic banking channels, with investment restricted to Shariah-compliant securities only. SECP prohibits Islamic brokers from offering interest-based financing or non-Shariah-compliant leverage financing to investors.
Out of the 535 securities listed on the Pakistan Stock Exchange (PSX), 308 are currently Shariah-compliant, representing approximately 65% of the exchange's total market capitalization. Dr Kabir Sidhu, the SECP Chairman, stated that the promotion of Shariah-compliant brokerage is a crucial step towards creating a riba-free economy.
He highlighted that providing investors with transparent and reliable Islamic investment opportunities is a top priority, noting that the availability of Shariah-compliant investment options will broaden participation in the capital market by attracting new investors. The regulator believes that this initiative will provide investors with enhanced access to Islamic investment products.
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