ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed the charitable/non-profit associations to obtain a Shariah opinion in the form of a Fatwa from a registered Shariah Advisor for collection and utilization of Islamic donations.

The SECP has issued an SRO 1513(I)/2023 to amend Associations with Charitable and Not for Profit Objects Regulations, 2018 here on Thursday.

According to the SECP’s revised regulations, it shall be the responsibility of the company to arrange a Shariah opinion in the form of a Fatwa from a Shariah Advisor registered with the Commission for collection and utilisation of such Islamic donations, which shall be duly annexed with the audited financial statements of the company.

The company shall not exploit or offend the religious susceptibilities of the people and ensure that Islamic donations, including but not limited to Zakat, Sadaqah or in any other form, shall not be received, invested, or utilized by it in any way that is contrary to the Shariah principles.

The company shall clearly disclose its policy for receipt, investment and utilization of Islamic donations in the financial statements and shall also disclose amount of such donations and avenues where utilized, SECP added.

Copyright Business Recorder, 2023