Regulatory Alerts2023-09-20
Added · Updated
Shariah Governance Regulations 2023
The Securities and Exchange Commission of Pakistan establishes a regulatory framework requiring companies and issuers to obtain Shariah compliance certificates before claiming Shariah compliance for their entities or securities. The regulations define Islamic financial institutions, mandate Shariah supervisory boards or advisors, and set quantitative tolerance levels for non-compliant income and investments, with thresholds to be reviewed every three years. Entities must divest non-compliant investments within periods determined by their Shariah advisors and implement income purification policies, while the Commission retains authority to grant, refuse, or revoke certificates based on specific screening criteria.
Topics
islamic-finance
Share