KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016 and issued license to the first Shariah-compliant brokerage house in Pakistan, it said on Tuesday.

The new regulations are aimed at providing brokerage houses, which intend to offer Shariah-compliant services, various options that include establishment of separate subsidiaries, offering these services through window operations or converting to a fully Shariah-compliant brokerage house.

“Such securities brokers shall obtain certificate of Shariah-compliant company in compliance with the Shariah Governance Regulations, 2023, and adhering to the Guidelines for Offering Islamic Financial Services issued by the SECP,” the regulator said in a statement.

“The Regulations also require such brokers to implement appropriate internal controls and adopt policies to address any conflict of interest and protect customer interest.”

In continuation of the aforementioned regulatory amendments, the SECP said it had granted a license to ZLK Islamic Financial Services (Private) Limited, marking it as the first fully Shariah-compliant brokerage house.

“It is anticipated that the new regulations will streamline entry process for new entrants in the brokerage industry and facilitate existing brokers desiring to offer Islamic Financial Services,” it said.

“This will be instrumental in promoting sustainable growth in the market, encouraging long-term investments in key economic sectors and bolstering financial inclusion in the country.”