RegAlert2018-11-05
Added · Updated
Shariah Governance Regulations, 2018
The Securities and Exchange Commission of Pakistan mandates that companies and securities must obtain a Shariah compliance certificate to be designated as Shariah compliant, with certificates valid for three years subject to renewal. The regulations establish specific financial screening criteria, including limits on interest-bearing debt and non-compliant income ratios, and require the divestment of non-compliant securities within one year. Entities must appoint a Shariah Advisor, conduct annual internal and external Shariah audits, and purify non-compliant income by transferring it to a charity account. The Pakistan Stock Exchange is required to conduct bi-annual screenings and establish a dedicated Shariah department within three months.
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GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN NOTIFICATION Islamabad the 2 nd November, 2018. S.R.O. 1318 (I)/2018 .- In exercise of the powers conferred by sub-section (1) of section 512 read with section 451 of the Companies Act, 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan is pleased to notify the following Shariah Governance Regulations, 2018 after having been previous published in the official Gazette vide notification S. R.O. 273 (I)/2018 dated March 01, 2018 as required by proviso to sub-section (1) of the said section 512, namely:-
CHAPTER I
PRELIMINARY
- Short title and Commencement.- (1) These Regulations shall be called Shariah
Governance Regulations, 2018.
(2) They shall come into force at once.
(3) These Regulations shall be applicable on Shariah compliant companies and Shariah compliant securities. (4) The provisions of these regulations shall be in addition to and not in derogation of any other relevant laws, rules or regulations applicable to Shariah compliant companies and Shariah compliant securities. - Definitions.- (1) In these regulations unless there is anything repugnant in the
subject or context-
(a) “Act” means the Companies Act, 2017 (XIX of 2017); (b) “Commission” means the Securities and Exchange Commission of Pakistan established under section 3 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997); (c) “Exchange” means the Pakistan Stock Exchange Limited; (d) “Form” means forms appended to these regulations; (e) “securities” shall have the same meaning as assigned to it in clause (61) of sub-section (1) of section (2) of the Act;
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Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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SECP published 3 documents in the last 30 days. We email you each new one the day it's published.