ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has established a dedicated Shariah-compliant brokerage segment in the capital market, with 33 brokerage houses now operating dedicated Shariah-compliant windows, collectively representing around 52 percent of the total trading volume at the Pakistan Stock Exchange (PSX).
In addition, two other dedicated brokers are offering a complete range of Islamic brokerage services.
Under the dedicated framework, Islamic brokerage services will operate with clear segregation of client funds and defined Shariah governance requirements.
The framework enables investors to directly access Shariah-compliant shares, Sukuk, and Islamic Exchange-Traded Funds (ETFs) through dedicated Islamic brokerage windows. Investor funds will be maintained through Islamic banking channels, while trading will be restricted to securities screened and approved as Shariah-compliant. Islamic brokers and windows will not undertake interest-based financing or non-Shariah-compliant leveraged or speculative transactions.
The initiative significantly expands investment opportunities for investors seeking Riba-free options. Currently, 308 of 535 listed securities are Shariah-compliant, representing around 65% of PSX’s market capitalization, reflecting the growing demand and significant potential for Riba-free investment. Dedicated Islamic brokerage services will further expand access and attract new investors to the capital market and provide investors with a broad universe of Islamic investment opportunities.
The SECP had introduced the framework through amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016, allowing brokerage houses to offer Islamic financial services through dedicated Islamic windows, separate subsidiaries or full conversion to Shariah-compliant operations.
The framework also requires appropriate Shariah oversight and compliance with applicable PSX, CDC and NCCPL requirements.
Chairman SECP Dr Kabir Ahmed Sidhu said, “The development of Shariah-compliant brokerage services is an important step towards the Government’s objective of a Riba-free economy. By providing investors with transparent and credible Shariah-compliant investment options, we aim to broaden participation in the capital market and accelerate the transition towards an Islamic financial system.”
Copyright Business Recorder, 2026