SECP empowers Islamic Finance Dept to grant Shariah-compliance certificates

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has empowered the Commissioner Islamic Finance Department to grant Shariah-compliance certificates to the applicant companies.

The SECP has issued S.R.O. 1349 (I)/2023 to delegate powers and functions of the SECP to the officers of Islamic Finance Department.

Every company shall, prior to claiming to be a Shariah-compliant company, obtain a declaration in the form of a Shariah-compliance certificate from the Commission (SECP). Any company desirous of obtaining a declaration in the form of a Shariah-compliance certificate shall make an application to the Commission.

The Commission, while considering an application shall have regard to the nature of business activities and operations, source of income, investments, and borrowing of the company in addition to Shariah screening criteria notified and other requirements, as may be stipulated by the Commission, from time to time.

The Commission may, if it is satisfied that the company seeking Shariah compliance certificate, has fulfilled the requirements, may grant a declaration in form of a Shariah compliance certificate.

The Commissioner Islamic Finance Department has been authorised to grant Shariah-compliance certificate to a company in form of a Shariah-compliance certificate on the format as set out in Form B.

The Commissioner would also have the authority to suspend/cancel Shariah compliance certificate granted under these regulations.

The Commission shall have the authority to exercise all powers delegated above to the Commissioners and Officers concurrently. In case the post of Head of Islamic Finance Department is vacant or he/she is unable, to perform his/her functions or he/she is unavailable to exercise the powers and functions delegated to him/her through this notification shall stand delegated to the Commissioner who shall have the authority to exercise all powers so delegated. This Notification shall not affect anything done, order made, notification issued, show cause issued, circular made, proceedings commenced, penalties imposed and/or collected, sanction granted, approval made, fee directed or collected, directions given, investigation, inspection or inquiry conducted or any other action taken or done under or in pursuant to notifications superseded above and shall be considered valid and under lawful authority. Any pending proceedings under any previous Notifications shall stand transfer to the delegated authority provided in this Notification forthwith who shall proceed with the matter as it stands prior to the coming into the effect of this Notification, it added.

Copyright Business Recorder, 2023