ISLAMABAD: SECP Shariah brokerage services have started through Islamic windows at 33 brokerage houses, expanding riba-free access to Pakistan’s capital market, the regulator said Wednesday.
The 33 firms represent about 52% of total trading volume at the Pakistan Stock Exchange (PSX). Two other dedicated brokers provide a complete range of Islamic brokerage services.
The windows allow investors to buy Shariah-compliant shares, Sukuk and Islamic exchange-traded funds. The firms may trade only securities that have been approved under Shariah screening requirements.
Brokerages must keep client funds separate and route them through Islamic banking channels. They must also meet the applicable requirements of the PSX, Central Depository Company and National Clearing Company.
Read: PSX Market Fall Deepens as KSE-100 Sheds 2,690 Points
The framework bars Islamic brokers and windows from offering interest-based financing. It also prohibits non-Shariah-compliant leveraged or speculative transactions.
According to SECP figures reported 308 of the PSX’s 535 listed securities meet Shariah requirements. Those securities account for around 65% of the exchange’s total market capitalisation.
SECP Chairman Dr Kabir Ahmed Sidhu said the services would give investors transparent and credible Islamic investment options. He added that the initiative supported the government’s goal of developing a riba-free economy.
