‘Convergence of conventional equities into Islamic can create enormous opportunities for PSX’

KARACHI: The Securities and Exchange Commission of Pakistan (SECP), in partnership with the Pakistan Stock Exchange (PSX) and the IBA Centre for Excellence in Islamic Finance (IBA-CEIF), held sessions to raise awareness about the Islamic capital market.

Speaking to the senior management of PSX, SECP Commissioner Mujtaba Ahmad Lodhi stated that the convergence of conventional equities into Islamic can create enormous opportunities for Pakistan’s stock market. He emphasized joint efforts to create a robust, transparent, and innovative ecosystem that attracts both domestic and international investors.

PSX CEO Farrukh H. Khan praised SECP and IBA-CEIF for their collaborative efforts and pledged to expand Islamic finance in stock market through concerted efforts.

Chairman of the Shariah Advisory Committee of SECP Dr. Mufti Irshad Ahmad Aijaz, delivered a lecture on foundational concepts of Islamic finance and key Shariah considerations for the capital market institutions.

The SECP’s Head of Islamic Finance Tariq Naseem made a detailed presentation on key aspects of the Federal Shariat Court judgement on elimination of Riba and obligations of capital market institutions. He also briefed the participants about SECP’s policy framework and future roadmap for Islamic finance in regulated sectors.

Director Ahmed Ali Siddiqui of IBA CEIF emphasized the need for the development of innovative capital market products in response to global financial changes.

The other session focused on “Shariah Disclosure requirements under the Companies Act, 2017 for Listed Companies” to raise awareness among CFOs, senior finance managers, and auditors about the obligations of Listed Companies under the Fourth Schedule of the Act.

SECP’s Divisional Head of the Specialized Companies Division, Khalida Habib talked about stock screening of Shariah compliant equities and its disclosures requirements. She said that the Shariah compliant equities attract diverse investors, promote ethical investment, and can position the stock market as a leading destination for Islamic finances.

Copyright Business Recorder, 2023