The Securities and Exchange Commission of Pakistan (SECP) has given legal backing to Islamic Financial Institutions, offering Islamic financial services, including Shariah-compliant companies and Shariah-compliant securities, to achieve the constitutional objective of eradication of Riba and Islamization of the economy.

ON TUESDAY, the SECP issued Shariah Governance Regulations, 2023, through S.R.O. 1314 (I)/2023.

Under the new regulations, every company shall, before claiming to be a Shariah-compliant company, by whatever name called, obtain a declaration in the form of a Shariah compliance certificate from the Commission following the provisions of these regulations.

The new regulations said that any company desirous of obtaining a declaration in the form of a Shariah-compliance certificate shall make an application to the Commission, as set out in Form A, along with documents as mentioned therein and receipt evidencing the payment of non-refundable processing fee, as prescribed in Schedule I.