The Securities and Exchange Commission of Pakistan, the country's insurance regulator, has issued a consultation paper proposing measures to promote shariah-compliant intermediaries in the capital market.
The paper is in line with SECP’s broader objective to facilitate the provision of shariah-compliant services within its regulated sectors. It proposes a phase-wise approach for shariah-compliant institutional investors to route their business through shariah-compliant brokers based on a plan to be prepared by their respective boards of directors.
In addition, the paper encourages Islamic financial institutions, including providers of Islamic window services, to utilise shariah-compliant intermediaries for takaful and investment purposes in situations where they are not obligated to do so.
Other proposed measures include creating a specific category for shariah-compliant intermediaries for greater visibility on the Centralized Gateway Portal.