33 stockbrokers offer Shariah windows

The Securities and Exchange Commission of Pakistan has created a separate Shariah-compliant brokerage division for the capital market, Dawn reported. About 33 brokerage firms now run separate Shariah windows, which together account for roughly 52 per cent of volume traded on the Pakistan Stock Exchange. Two additional specialist brokers also provide the complete suite of Islamic brokerage offerings.

Under the framework, investors can reach Shariah-compliant shares, sukuk and Islamic exchange-traded funds through these windows. Client money must sit with Islamic banking channels, and trading is limited to stocks that have been vetted and cleared as Shariah-compliant. Interest-based financing and non-compliant leveraged or speculative dealings are off limits for these brokers.

Dawn added that 308 of the 535 stocks listed on the exchange meet Shariah criteria, which translates to about 65 per cent of PSX market value. The initiative widens options for investors seeking Riba-free products, and the report describes such demand as growing.