The Securities and Exchange Commission of Pakistan (SECP) is in the process of preparing shari'ah compliance regulations for the Islamic capital market. Sources told Business Recorder here on Thursday that the SECP has chalked out a comprehensive plan for the development of the Islamic capital market in the country. Under the future plan, the SECP will introduce new products for Islamic capital market. The commission would also create awareness on the Islamic capital market.
The SECP is also planning to introduce shari'ah audit mechanism. The commission would also adopt new accounting standards on Islamic finance issued by Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Under the plan, the SECP would adopt and implement shari'ah standards of AAOIFI and guidelines of Islamic Financial Services Board (IFSB) to harmonise the certifications being offered by ICM with Islamic injunctions. The SECP will launch webpage of Islamic finance department for education, promotion and development of Islamic finance.
According to the SECP, Islamic Finance Department was established by the Commission in February 2015 for promoting and developing the Islamic capital market. Key achievements of the SECP during 2014-15 revealed that the SECP has constituted Shari'ah Advisory Board for the Islamic capital market. It conducted shari'ah reviews of offering documents [mutual funds, pension funds and REITs], prospectuses of Sukuk, commodity market products and modarabas regulations. The SECP reactivated SECP-State Bank of Pakistan (SBP) joint forum on Islamic finance to encourage and promote the Islamic banking and finance in the country and conducted training and capacity building programs for the SECP-SBP employees.