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Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has officially approved amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016, paving the way for the introduction and facilitation of Shariah-compliant brokerage services within the Pakistani securities market.
According to Securities and Exchange Commission of Pakistan, these regulatory changes are designed to accommodate brokers wishing to provide Shariah-compliant services through various means, such as establishing separate subsidiaries, utilizing window operations, or transitioning into fully Shariah-compliant brokerage houses. Brokers opting for this route must secure a certificate of Shariah compliance in line with the Shariah Governance Regulations, 2023, and adhere to the SECP’s Guidelines for Offering Islamic Financial Services. Additionally, these brokers are required to institute proper internal controls and policies to mitigate any conflicts of interest and safeguard customer interests.
In a significant development following these amendments, ZLK Islamic Financial Services (Private) Limited has been granted a license as the first brokerage house fully compliant with Shariah principles in Pakistan. This move is expected to simplify the entry process for new participants in the brokerage sector and support existing brokers wishing to expand into Islamic financial services, thereby fostering market growth, promoting long-term investments, and enhancing financial inclusion across the country.
The announcement and details of these amendments are available for public review on the SECP’s official website.