After the announcement of the Federal Shariat Court Judgement last year, the Securities and Exchange Commission of Pakistan (SECP) has issued comprehensive Guidelines for Offering Islamic Financial Services, 2023, paving the way for the transformation of a regulated person/entity into a full-fledged Islamic institution.

Subsequent to the issuance of these guidelines, Security Investment Bank Limited (SIBL) has applied for conversion into a Shariah-compliant investment bank.

SIBL is a public limited company listed on the Pakistan Stock Exchange and licensed to carry out investment finance services as a non-banking finance company (NBFC) under the Companies Act, 2017. SIBL has made a public disclosure at the PSX and applied to the SECP for a certificate as a Shariah-compliant company under Section 451 of the Companies Act, 2017, read with the Shariah Governance Regulations, 2018. This conversion will be a multi-stage process, and SECP will ensure a smooth transition with minimal disruption to the customers of SIBL.

In view of the growing demand for Shariah-compliant financial services, and in light of the constitutional requirement to eliminate the Riba from the economy, SECP is geared towards facilitating its regulated entities desirous of converting to Shariah-compliant status.

Source: Pro Pakistani