The Securities and Exchange Commission of Pakistan (SECP) has published a concept paper aimed at facilitating Shariah-compliant brokerage services in the securities market through an optimal organizational and operational model.
The concept paper outlines various options for the provision of Shariah-compliant brokerage services. These options include establishing an Islamic brokerage subsidiary with licenses for trading-only/online-only or trading and self-clearing categories, as well as creating a dedicated Islamic window within existing brokerage firms.
In addition to presenting available options, the paper includes a critical analysis and summary of international best practices in this regard. Last year, the SECP issued guidelines for conventional financial institutions to offer Shariah-compliant services and enabled the public to invest in the Pakistan Stock Exchange (PSX) while adhering to Shariah principles.
The SECP aims to promote Islamic capital markets for sustainable market growth, long-term economic investment, and financial inclusion.
Stakeholders are invited to provide feedback on the options outlined in the concept paper. The document can be accessed on the SECP website at the following link: SECP Concept Paper on Shariah-Compliant Brokerage Services.