ISLAMABAD: The Shariah Advisory Committee (SAC) of the SECP has approved standardization of the Shariah Structure based on Musharakah (ShirkatulAqd) for the issuance of Sukuk, along with draft agreements for Sukuk issuance, Sukuk subscription, Issue agency agreements, and Musharakah.

The standardized requirements shall facilitate the preparation of requisite documentation for seeking approval for the issuance of Shariah-compliant securities under the Shariah Governance Regulations, 2018, and the subsequent issuance of Sukuk, promoting consistency in practice and transparency in disclosures.

Notable interest is being observed in the issuance of Sukuk by companies to meet short-term working capital requirements as an avenue to fund their financial resource requirements. However, different extents and manners of disclosure were being used by issuers.

Therefore, standardized documentation with the flexibility to make changes has been introduced aimed at reducing regulatory burden, encouraging harmonized disclosures, and facilitating the grant of Shariah compliance certificates by the SECP and subsequent issuance of Sukuk by the companies.

The SECP remains committed to the development and promotion of Islamic finance in its regulated sectors in light of its mandate and the recent judgement of the Federal Shariat Court. Soft copies of the documents are available for download and can be accessed through SECP’s official website at: Agreements (Draft Agreement (Musharakah, Shariah structure, Sukuk issuance and Sukuk subscription and Issue agency).

Copyright Business Recorder, 2023