Regulatory Alerts2023-11-02
Added · Updated
Amendments to the Associations with Charitable and Not for Profit Objects Regulations, 2018
The Securities and Exchange Commission of Pakistan amends the Associations with Charitable and Not for Profit Objects Regulations, 2018, to impose Shariah compliance requirements on companies. Regulation 7 is updated to prohibit the exploitation of religious susceptibilities and to mandate that Islamic donations, such as zakat and sadaqah, are not utilized in ways contrary to Shariah principles, requiring a registered Shariah Advisor's Fatwa to be annexed to audited financial statements. Additionally, new sub-regulation 1A to Regulation 13 requires companies to clearly disclose their policy for the receipt, investment, and utilization of Islamic donations, along with the specific amounts and avenues of use, within their financial statements.