PSX Launches Islamic Trading Counter Just for Investors

The Pakistan Stock Exchange (PSX) has introduced a dedicated trading counter for Islamic investments. This counter was approved by the Securities and Exchange Commission of Pakistan (SECP). It caters to both retail and institutional investors, offering a platform specifically for Shariah-compliant securities. Thirty-nine brokerage firms have joined this initiative, with two firms specializing in Shariah-compliant brokerage services.

The counter exclusively trades in Shariah-compliant shares, government Ijarah Sukuk, and corporate Sukuk, excluding interest-based products like short selling and derivatives. Investors can opt for Murabaha Share Financing (MSF) as a Shariah-compliant alternative to traditional share financing. Non-compliant holdings can be sold to align portfolios with Islamic investment principles.

Additionally, PSX has developed a Shariah portal on its Data Portal, allowing investors to identify eligible shares and Sukuk for Islamic investment. To facilitate this, investors can open either regular or Sahulat Accounts using a Shariah-compliant customer relationship and risk disclosure document. PSX's Managing Director and CEO, Farrukh H. Sabzwari, emphasized that this system would enhance access to Islamic investment opportunities, thereby boosting investor confidence.

The exchange now has over 650,000 investor accounts, with a significant portion contributed by Millennials and Gen Z. SECP Commissioner Imtiaz Haider noted that this move could attract more investors and generate opportunities for brokerage firms. The SECP also plans to broaden digital retail Sukuk offerings and introduce Shariah-compliant tools for liquidity and risk management.