SECP Allows Securities Brokers to Offer Shariah-Compliant Services

The Securities and Exchange Commission of Pakistan (SECP) has decided to allow securities brokers to offer completely Shariah-compliant brokerage services. The SECP has issued S.R.O. 427(I)/2024 to notify draft amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016 on Thursday. According to the SECP’s regulations, the Commission may allow the establishment of a wholly owned subsidiary to provide Shariah-compliant brokerage services subject to the specified terms and conditions: The Securities Broker may offer completely Shariah-compliant brokerage services subject to the condition that it shall obtain a certificate of Shariah[1]compliant company and adhere to the Guidelines for Offering Islamic Financial Services issued by the Commission. The Securities Broker may establish a window to provide Shariah[1]compliant services subject to compliance with the Guidelines for Offering Islamic Financial Services issued by the SECP and approval of Shariah-compliant brokerage services model from SECP, SECP added.