KARACHI, March 20: The State Bank has set new criteria for Shariah advisers in Islamic financial institutions and said the advisers should not hold position in any other institution.

The adviser should not have any substantial interest (five per cent or above) in the business of : (a) exchange company (b) member of stock exchange, and (c) corporate brokerage house, said a SBP circular.

The SBP said a revised ‘Fit and proper criteria for Shariah advisers of Islamic banking institutions’ has been introduced under which adviser will not hold any executive or non-executive position in any other financial institution, except working as Shariah adviser of Islamic mutual funds of the same IBI.

In case Shariah adviser of an IBI is already working on some executive/non-executive position in any other financial institution, except as Shariah adviser of Islamic mutual funds of the same IBI, the position should be regularised within a period of six months hereof by relinquishing either of the posts.

The State Bank also put the educational criteria for the Shariah adviser.

The SBP said a Shariah adviser must have at least four years experience of giving Shariah rulings, including the period of Takhasus fil Ifta; or at least five years’ post qualification experience in teaching or research and development in Islamic banking and finance. Reasonable knowledge of Arabic and English languages is necessary. Preference will be given to those who have certificate in Takhassus fil Fiqh/Takhas us fil Ifta.

In order to update the database of Shariah advisers of IBIs in Pakistan, all the existing IBIs were advised to submit information about their Shariah adviser in the format provided in revised SAP-Form, within 30 days of issuance of this circular.