ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has imposed the Shariah Governance Regulations 2018, in order to fulfill the objective as per Article 38 (f) of the Constitution of Pakistan.
According to press declaration, under the provided set of laws, no business is allowed to assert as Shariah compliant or as an Islamic financial institution until it acquire official recognition for Shariah compliance from the SECP.
Furthermore, a certification will play vital role for issuing a Shariah compliant safety measures.
According to the notice issued on Friday, the authority of these set of laws is the corporate sector, Shariah-compliant corporate sector, Islamic capital markets, Shariah-compliant securities, Islamic financial institutions.
Also, the implementation of a detailed structure for Shariah-compliant business is a an important step in order to provide the groundwork for an accurate Islamic financial and economic system.
The provided regulations are in progressive stage to the Senate’s resolution taken forward by Senator Shibli Faraz and collectively passed on July 9, 2018. However, the House suggested that the government should take rapid actions to eliminate RIBA as soon as possible, and at least 30% of the new government debts should be restored with Shariah-compliant financing methods.
These regulations are swift steps in the direction of an expansion of a safe, prolonged & sustainable Islamic financial market, corporate sector and capital market.
Furthermore, these regulations will consist of certification for Shariah compliant companies and Shariah compliant securities, which will be using a detailed Shariah screening methodology for listed as well as for nonlisted companies, internal and external Shariah audit, Shariah advisory, Shariah compliance, income sanitization and charity allocation method.
These regulations will support to gain equality, synchronization, and lucidity in the business performance and operational feature of Shariah-compliant businesses and Islamic financial institutions.
It needs to be mention here that, these policies will make the compilation and analysis of data on corporate sector’s in line with Shariah.