KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved five securities brokers to launch dedicated Sharia-compliant brokerage services through Islamic windows, a statement said on Monday.
The move will allow investors to conduct Sharia-compliant stock market transactions through segregated Islamic trading operations, with brokers restricted to investing client funds exclusively in Sharia-compliant shares, Sukuk and Islamic Exchange Traded Funds (ETFs).
Under the approved framework, brokers will maintain separate Islamic operations, including dedicated systems and segregated client and house bank accounts with Islamic banks, to ensure transparency and Sharia compliance.
Trading through the Islamic windows will be limited to Shariah-compliant listed companies, including constituents of the PSX-KMI All Share Islamic Index, as well as Sukuk and Islamic ETFs.
The approvals were granted following a review of each broker’s operational model, governance structure, compliance arrangements, and Sharia opinions.The Islamic window model is a phased approach designed to enable conventional brokerage houses to gradually develop Sharia-compliant services within the existing regulatory framework, in line with international best practices.
The SECP said the initiative is expected to attract retail and institutional investors seeking Islamic financial products and strengthen the development of an inclusive and ethical financial system in Pakistan.
Brokers include Insight Securities (Pvt) Limited, Optimus Capital Management (Pvt) Limited, Value Stocks and Commodities (Pvt) Limited, Intermarket Securities Limited, and Darson Securities (Pvt) Limited.
