AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

ISLAMABAD: The proposed “Shariah supervisory board” of the Islamic financial institutions would ensure that the financial resources are free from ‘Riba’ (interest) and other elements prohibited by Shariah.

The new Shariah Governance Regulations, 2023 issued by the Securities and Exchange Commission of Pakistan (SECP) revealed that “Shariah supervisory board” means a board constituted, appointed or engaged by the Islamic financial institution to advice it on matters concerning Shariah principles and rules.

It would have the mandate to review and monitor to ensure that inflows and outflows of financial resources are free from Riba (interest, usury or any other form), Qimar (Gambling), Gharar (Speculation) and other elements prohibited by Shariah (e.g. drugs and alcohol, tobacco, pork related items, etc.), SECP stated.

It is expected that proposed regulations will further help in achieving the constitutional objective of eradication of Riba and Islamization of the economy.

Every Shariah-compliant company and Islamic financial institution shall form, constitute, appoint, or engage a Shariah supervisory board within such period as may be notified by the Commission, comprising at least two persons meeting fit and proper criteria and other requirements as provided in these regulations.

Provided that until a Shariah supervisory board is formed, appointed, or engaged by a Shariah-compliant company or an Islamic financial institution, it must appoint or engage a Shariah advisor registered under these regulations to perform the functions of the Shariah supervisory board.

The term of appointment or engagement of the Shariah supervisory board or Shariah advisor shall be for a period of three years that may be extended further with mutual consent.

However, such a term may be capped for the duration of the applicable Shariah-compliant security if it is a redeemable capital instrument.

In the case of short-term securities for a period less than a year, the issuer may not retain the Shariah supervisory board or Shariah advisor for that particular security after its issuance, SECP regulations added.

Copyright Business Recorder, 2023

Comments

Comments are closed.