ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed major changes in the Shariah Governance Regulations, 2023, to facilitate Shariah-compliant companies.
In this regard, the SECP has issued a Comparative Statement on the proposed amendments to the Shariah Governance Regulations, 2023.
According to the proposed amendments, the certification of companies’ approval by the commission is being restricted to regulated persons, and a new category is being introduced with special provisions.
The Shariah review-related responsibilities have been moved to the Shariah supervisor board/ Shariah advisor of the applicant, as per proposed changes.
As per the Commission’s decision, certification is now limited only to regulated persons who are licenced, registered, or authorized otherwise.
The proposed amendments have explicitly clarified that having a Shariah board/advisor is mandatory for making such an application. The primary responsibility of Shariah review and approval rests with the Shariah board/advisor.
New provisions have been introduced for certification by the Shariah Board/advisor instead of the Commission for the companies that are not regulated persons, the SECP added.
The proposed changes in the Shariah Governance Regulations, 2023, will empower the Commission to safeguard the integrity of Shariah compliance, which is particularly important for the unregulated sector where certification is delegated to Shariah Advisors, ensuring accountability and adherence to regulatory standards.
The SECP has also proposed to omit the requirement of mandatory certification of a Shariah-compliant company registered as a Shariah advisor.
Copyright Business Recorder, 2026