The Securities and Exchange Commission of Pakistan (SECP) unveiled a concept paper on Friday, outlining strategies to facilitate Shariah-compliant brokerage services within the securities market through an optimal organizational and operational model.
The concept paper explores various avenues for delivering Shariah-compliant brokerage services, including the establishment of an Islamic brokerage subsidiary licensed under either a trading-only/online-only or trading and self-clearing category. Alternatively, it proposes the creation of a dedicated Islamic window, as detailed in a press release.
In addition to outlining these options, the concept paper provides a comprehensive analysis of available choices and summarises international best practices in the field. Last year, the SECP issued guidelines for conventional financial institutions to offer Shariah-compliant services, marking a significant step in aligning financial practices with Islamic principles.
Moreover, separate guidelines were issued to facilitate public investment in the Pakistan Stock Exchange (PSX) while adhering to Shariah principles, underscoring the SECP’s commitment to nurturing Islamic capital markets for sustainable market growth, long-term economic investment, and financial inclusion.
The SECP encourages stakeholders to contribute their insights and feedback on the proposed options for providing Islamic brokerage services, inviting a collaborative approach to shaping the future of Shariah-compliant finance in Pakistan.