KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the Pakistan Stock Exchange (PSX) Regulations aimed at promoting greater market transparency, enhancing investor protection, and developing a robust Shariah-compliant capital market ecosystem, the regulator said on Monday.
The approved changes require PSX to publicly disclose all disciplinary actions taken against listed companies on its website, according to the SECP. This will enable investors to make better-informed decisions and enhance overall disclosure to market participants.
“Listed companies must now provide Shariah-related disclosures on income, loans, and investments directly to PSX. This will give the exchange access to this information, allowing for accurate and timely Shariah screening for inclusion in the KMI All Share Index, thereby improving the reliability and credibility of Islamic indices,” the SECP said.
“To further enhance transparency, PSX has been advised to develop and maintain Shariah Indices (KMI Indices) either itself or through an independent third party within 12 months from the date of the amendments.”
As Pakistan’s economy steadies under a $7 billion International Monetary Fund (IMF) program, stock investors are increasingly gravitating toward Shariah-compliant equities, with Pakistan Stock Exchange (PSX) data showing these counters outperforming conventional stocks since early October and accounting for more than half of the daily trading value.
Pakistan’s market has been on a strong upward run, with the benchmark KSE-100 Index climbing 41 percent to 161,935 points from January till Nov. 15. The Karachi Meezan Index (KMI-30), launched in 2008 to track Shariah-compliant equities, rose 30 percent during this period.
The SECP said the fresh amendments will facilitate the offering of Shariah-compliant brokerage services and introduce dedicated Shariah-compliant account opening forms to make it easier for investors to open Islamic trading accounts.
“These reforms reflect the SECP’s continued efforts to build a more transparent, efficient, and inclusive capital market that effectively meets the growing investor demand for trustworthy Shariah-compliant investment opportunities in Pakistan,” it added.
