Shariah compliant companies and Islamic financial institutions would be required to obtain Shariah compliance certificate from the Securities and Exchange Commission of Pakistan (SECP) for operating as a company or an institute. According to the Shariah Governance Regulations, 2018 issued by the SECP, no company shall be called a Shariah compliant company or shall hold itself out as operating a Shariah compliant company or Islamic financial institution, by whatever name called, unless it obtains a Shariah compliance certificate from the Commission under these regulations.
The SECP said that any company desirous of obtaining a Shariah compliance certificate shall make an application to the Commission as set out in Form A along with documents as mentioned therein and receipt evidencing the payment of non-refundable processing fee as prescribed in Schedule I.
The Commission, while considering an application made to it under sub-regulation (1) shall have regard to the Shariah screening criteria as provided in these regulations and any other condition as may be specified by the Commission from time to time.
The Commission may, if it is satisfied that the company seeking Shariah compliance certificate has fulfilled the minimum criteria, grant a Shariah compliance certificate on the format as set out in Form B, subject to such terms and conditions or restrictions as it deem fit to impose: Provided that the Commission may at any time vary or revoke such restrictions or conditions as it may require.
The Shariah compliance certificate granted shall remain valid for a period of three years from the date of certificate unless suspended or cancelled earlier by the Commission.
The company shall, at least one month prior to the date of expiry of the certificate, apply for renewal of Shariah compliance certificate to the Commission on the format as set out in Form C along with all the documents as mentioned therein and receipt evidencing the payment of non-refundable processing fee as prescribed in Schedule I.
The Commission may, upon being satisfied, after making such inquiries and obtaining further information as it deems necessary, that the company continues to meet the requirements and conditions of Shariah compliance certificate and is eligible for renewal, shall renew the Shariah compliance certificate on the format as set out in Form D. The certificate granted under this regulation shall not be valid for the purpose of availing tax rebate under criteria prescribed in Income Tax Ordinance, 2001, the SECP added.
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