ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday notified the Shariah Governance Regulations 2023 to revamp the regulatory framework.

The new regulations, issued under Section 512(1) read with Section 451 of the Companies Act 2017, have introduced the concepts of voluntary Shariah supervisory boards and separate requirements for Shariah stock screening of listed securities.

In addition, the jurisdiction of Section 451 of the act to cover all securities has also been restored.

New regulations replaced the requirements of renewal of Shariah-compliant securities and qualification & experience requirements for Shariah advisors have been further strengthened. In addition, the powers and functions of Shariah advisors have been redefined by allowing them to offer services within all regulated sectors.

The independent assurance report by the external Shariah auditor on the format, agreed with the Institute of Chartered Accountants of Pakistan, has also been added. The regulations have been framed after comprehensive public consultation involving representatives from listed companies, brokers, asset management companies, mutual funds, and Shariah advisors.

Published in Dawn, September 22th, 2023