KARACHI:Pakistan Stock Exchange (PSX) on Thursday launched Shariah-Compliant Trading Counter after the Securities and Exchange Commission of Pakistan (SECP) approved the Shariah Trading Counter Regulations. Retail and institutional investors now have a dedicated end-to-end ecosystem for Islamic investing.
The launch was marked with a Gong Ceremony, attended by representatives of SECP, SBP, CDC, NCCPL and PSBA, along with Shariah scholars and the participating brokerage houses. Thirty-nine brokers have been onboarded to offer
Shariah-compliant trading through Islamic windows. Two more brokerage houses are licensed as full-fledged Shariah-compliant brokers.
The Counter is governed by operational procedures and regulations prescribed by the Exchange and approved by the Commission. Trading is limited to Shariah-compliant equities, Government Ijarah Sukuk and Corporate Sukuk, and non-compliant securities are prohibited. Interest-based leverage products such as MTS are blocked, with Murabaha Share Financing (MSF) offered as the Shariah-compliant alternative. Short selling and derivatives trading are also not permitted. Investors can divest non-compliant holdings to purify their portfolios.
In addition, a new Shariah Portal on the PSX Data Portal lists every Shariah-eligible stock and Sukuk.
Investors open accounts, including Sahulat Accounts, through a Shariah-compliant Customer Relationship and Risk Disclosure Document.
‘By providing a dedicated trading environment supported by system-based compliance controls, this initiative enhances investor confidence, improves accessibility to Islamic investment opportunities, and further strengthens the country’s Islamic capital market ecosystem,’ said Farrukh H. Sabzwari, MD and CEO, PSX.
He noted that investor accounts have passed 650,000, with Millennials and Gen Z driving much of the new participation. He added that the platform is expected to draw more investors from Pakistan’s predominantly Muslim population.
Imtiaz Haider, Commissioner, SECP, added: ‘With a significant proportion of listed equity securities and mutual fund assets already Shariah-compliant, this initiative will help broaden market participation, create new opportunities for investors and the brokerage industry, and further strengthen investor confidence in Shariah-compliant investment options.’
Dr. Tariq Naseem, Head of Islamic Finance, SECP, outlined the next steps, including expanding digital retail Sukuk,
introducing Shariah-compliant tools for liquidity and risk management. Lastly, strengthening the legislative framework for Islamic financial services.