Move aims to expand Sharia-compliant investment options in Pakistan’s stock market
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved five brokerage firms to launch Islamic brokerage windows, allowing Sharia-compliant trading in the capital market.
According to Beyond Time News, the initiative is designed to expand Islamic financial services and attract more investors seeking ethical investment options.
Sharia-Compliant Trading Framework Introduced
Under the new system, brokerage firms will operate separate Islamic trading windows.
These windows will allow investors to trade only in Sharia-compliant instruments, including approved listed shares, Sukuk, and Islamic Exchange Traded Funds (ETFs).
Each brokerage house will maintain segregated accounts and independent trading systems to ensure clear separation from conventional operations.
Strict Compliance and Monitoring Rules
According to Beyond Time News, the SECP has directed firms to use dedicated Islamic banking channels for all client transactions.
Only stocks included in approved Sharia screening lists, such as the PSX-KMI All Share Islamic Index, will be eligible for trading under this system.
The regulator said it reviewed governance structures, compliance systems, and Sharia advisory approvals before granting permission.
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Step Toward Islamic Finance Expansion
Officials described the initiative as a phased approach to gradually expand Islamic financial services within Pakistan’s existing regulatory framework.
The model allows conventional brokerage firms to introduce Islamic services without creating separate standalone institutions.
Expected Impact on Investors
According to Beyond Time News, regulators expect the move to increase participation from both retail and institutional investors.
The initiative is also aimed at strengthening confidence in ethical and Sharia-compliant financial products.
SECP officials said the development will support broader growth in Pakistan’s Islamic capital market and improve financial inclusion in the sector.
