Sharia-compliant brokerage services will be launched by five securities brokerage firms after approval from the Securities and Exchange Commission of Pakistan, the regulator said.
The approved Islamic windows will allow investors to conduct stock market transactions in accordance with Islamic financial principles through segregated trading operations, in line with the SECP framework.
Under the approval, brokers may invest client funds only in Sharia-compliant shares, Sukuk and Islamic Exchange Traded Funds. Trading through the windows will be limited to eligible listed companies, including firms in the PSX-KMI All Share Islamic Index.
Each brokerage house must maintain separate Islamic operations, including dedicated trading systems and segregated client and company bank accounts operated through Islamic banks, the regulator said.
The SECP said it granted approvals after reviewing each broker’s operational framework, governance mechanisms, compliance arrangements and Sharia opinions.
Officials described the Islamic window model as a phased regulatory framework that allows conventional brokerage firms to gradually expand into Islamic financial services while remaining within Pakistan’s regulatory framework and international best practices.
The regulator said the initiative is expected to support retail and institutional participation in Islamic financial products and contribute to the development of an ethical and inclusive financial system in Pakistan.
