A statement issued by SECP here Thursday said that the draft regulations were earlier notified to solicit public comments. Currently, sukuk are issued as an instrument of redeemable capital under Section 120 of the ordinance, mainly through private placements.
Beside Section 120, no other specific regulatory framework exists for structuring and issuance of sukuk. Therefore, it becomes imperative to have a separate regulatory framework for issue of sukuk.
Major investors in sukuk include the mutual funds, employees' funds, commercial banks both conventional and Islamic, and NBFCs which directly or indirectly hold public funds.
The regulations require appointment of Sharia advisor and investment agent. Sharia advisor will help in structuring of sukuk ensuring that these are structured according to the Sharia requirements.
The investment agent will help in marketing and placing the sukuk and safeguarding interest of the sukuk holders. The regulations will enhance investors' confidence, which will help the development of the sukuk market and will provide an additional avenue of Sharia-compliant regulated market.