SECP approves five securities brokers to open Islamic brokerage windows

The Securities and Exchange Commission of Pakistan (SECP) has allowed five securities brokers to launch dedicated Shariah compliant brokerage services through Islamic windows, enabling investors to carry out halal stock market investments.

The segregated Islamic trading operations are expected to expand Shariah compliant investment opportunities in Pakistan’s capital market and attract both retail and institutional investors seeking Islamic financial products.

Under this arrangement, brokers will invest clients’ funds only in Shariah compliant shares, Sukuk, and Islamic Exchange Traded Funds (ETFs) through separate Islamic brokerage operations maintained by the approved brokers.

The approvals for establishing dedicated Islamic windows at brokerage houses were granted after reviewing the brokers’ operational models, governance structures, compliance arrangements, and Shariah opinions.

Under the approved framework, brokers will maintain separate Islamic operations, including dedicated systems and segregated client and house bank accounts with Islamic banks, to ensure transparency and compliance with Shariah principles.a

Trading through these Islamic windows will be restricted to Shariah compliant listed companies, including constituents of the PSX-KMI All Share Islamic Index, as well as Sukuk and Islamic ETFs.