{"id":5823,"date":"2025-09-01T20:10:18","date_gmt":"2025-09-01T15:10:18","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=5823"},"modified":"2025-09-01T20:10:18","modified_gmt":"2025-09-01T15:10:18","slug":"secp-pushes-for-riba-free-financial-sector-with-new-directive","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=5823","title":{"rendered":"SECP Pushes for Riba-Free Financial Sector with New Directive"},"content":{"rendered":"

Islamabad \u2013 The Securities and Exchange Commission of Pakistan (SECP)<\/a> has issued a directive requiring its licensed entities to adopt concrete measures for promoting Shariah-compliant intermediary services, in line with the constitutional mandate to gradually eliminate riba from the financial sector.<\/p>\n

Under the new framework, Shariah-compliant institutional investors regulated by SECP \u2013 including takaful operators, window takaful operators, non-banking finance companies, collective investment schemes, voluntary pension schemes, modarabas, private funds, and securities brokers \u2013 are now required to route their securities trading transactions through Shariah-compliant brokers in a phased manner.<\/p>\n

In the first phase, these investors must formulate internal policies by December 31, 2025<\/strong>, and begin reporting their progress and implementation challenges on a quarterly basis starting March 31, 2026<\/strong>. By June 30, 2026<\/strong>, they must include at least one Shariah-compliant broker in their approved panel.<\/p>\n

The second phase, running from July 1, 2026, to June 30, 2027<\/strong>, mandates that at least 20% of securities trading business<\/a> be routed through Shariah-compliant brokers. The Commission will review progress at the conclusion of this phase to decide the way forward.<\/p>\n

Additionally, SECP has strongly encouraged Shariah-compliant entities to opt for takaful<\/strong> instead of conventional insurance and to use Islamic asset management services for investments.<\/p>\n

To support the initiative, the Pakistan Stock Exchange<\/a> (PSX) has been directed to develop a Shariah-compliant trading mechanism, raise market awareness, and coordinate with TRE Certificate Holders to provide Islamic brokerage services through outright conversion, subsidiaries, or window operations.<\/p>\n

Meanwhile, the Central Depository Company (CDC) has been instructed to enhance the visibility of Shariah-compliant intermediaries by creating a dedicated category for them on Asaan Connect, Emlaak Financials, and Islamic banks\u2019 digital<\/a> apps<\/strong>, in collaboration with the State Bank of Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"

Islamabad – The Securities and Exchange Commission of Pakistan (SECP) has issued a directive requiring its licensed entities to adopt concrete measures for promoting Shariah-compliant intermediary services, in line with the constitutional mandate to gradually eliminate riba from the financial sector. Under the new framework, Shariah-compliant institutional investors regulated by SECP – including takaful operators, […]<\/p>\n","protected":false},"author":1,"featured_media":5817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t