SECP launches Shariah-compliant brokerage segment for stock market investors

Business Recorder reported that the Securities and Exchange Commission of Pakistan (SECP) has set up a Shariah-compliant brokerage segment to widen access to Islamic investing on the capital market. According to a statement issued on Wednesday, 33 brokerage houses have already begun offering services through dedicated Islamic windows. Through these windows, investors can deal directly in Shariah-compliant equities, sukuk certificates and Islamic ETFs.

Funds placed through these windows will be channelled through Islamic banking systems, and trading there is confined to Shariah-compliant securities. Islamic brokers are barred from offering interest-based financing or leverage loans that do not comply with Shariah. Of the 535 securities on the PSX, 308 currently meet Shariah criteria, and together they make up about 65% of the bourse's market capitalisation.

SECP Chairman Dr Kabir Sidhu called the move a significant milestone on the way to a riba-free economy and stressed that offering investors clear, dependable Islamic options is a top priority. He said such choices could help bring new investors into the market and broaden participation there.