SECP Updates PSX Regulations to Boost Shariah-Compliant Investments and Market Transparency

The Securities and Exchange Commission of Pakistan (SECP) has introduced key amendments to the Pakistan Stock Exchange (PSX) regulations to strengthen transparency and support Shariah-compliant investing. The move aims to protect investors, improve market disclosure, and build a more robust Shariah-compliant capital market ecosystem.

Under the new rules, PSX must publicly disclose all disciplinary actions taken against listed companies on its website. This step ensures investors can access critical information, make informed decisions, and rely on a more transparent market framework.

The amendments also require listed companies to report Shariah-related details on income, loans, and investments directly to PSX. This enables timely and accurate Shariah screening for the KMI All Share Index. By improving the reliability of Islamic indices, the exchange enhances credibility for Shariah-compliant investors.

To further strengthen transparency, PSX is tasked with developing and maintaining Shariah Indices (KMI Indices) either internally or through an independent third party. These indices must be fully operational within 12 months from the effective date of the amendments.

The changes also facilitate the introduction of Shariah-compliant brokerage services. Investors can now open Islamic trading accounts using dedicated forms, including Customer Relationship Forms and Sahulat Account Opening Forms. This makes the process simpler and more accessible for those seeking Shariah-compliant investment options.