SECP creates dedicated Shariah-compliant brokerage segment at PSX

August 12, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has established a dedicated Shariah-compliant brokerage segment in the capital market, with 33 brokerage houses already offering Islamic brokerage windows that account for around 52% of total trading volume at the Pakistan Stock Exchange (PSX).

In addition, two dedicated brokers are providing a comprehensive range of Shariah-compliant brokerage services, further expanding access to Islamic investment products for investors.

Under the new framework, Islamic brokerage operations will maintain clear separation of client funds and follow specific Shariah governance and compliance requirements.

Investors will be able to access Shariah-compliant equities, Sukuk and Islamic Exchange Traded Funds (ETFs) through dedicated Islamic brokerage windows.

Client funds will be maintained through Islamic banking channels, while trading activities will be limited to securities that have been screened and approved as Shariah compliant.

The framework prohibits Islamic brokers and dedicated windows from offering interest-based financing as well as non-Shariah-compliant leveraged and speculative transactions.

The initiative is expected to widen investment opportunities for investors seeking Riba-free financial products and increase participation in the capital market.

At present, 308 out of 535 securities listed on the PSX are classified as Shariah compliant, accounting for approximately 65% of the exchange's total market capitalization.

The SECP introduced the framework through amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016.

The amendments allow brokerage firms to provide Islamic services through dedicated windows, establish separate subsidiaries or fully convert their operations into Shariah-compliant businesses.

The framework also requires brokers to establish suitable Shariah oversight mechanisms while complying with relevant requirements of the PSX, Central Depository Company (CDC) and National Clearing Company of Pakistan Limited (NCCPL).

SECP Chairman Dr. Kabir Ahmed Sidhu termed the development an important step toward supporting the government's objective of establishing a Riba-free economy.

He said the provision of transparent and credible Shariah-compliant investment avenues would help broaden participation in the capital market and support the transition toward an Islamic financial system.

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