Islamabad, Apr 16, 2025: The Securities and Exchange Commission of Pakistan (SECP) has announced a new directive, requiring all Shariah-compliant schemes introduced after the enforcement of the Shariah Governance Regulations, 2023, to obtain a Shariah compliance certificate by September 30, 2025.
The SECP issued S.R.O.600(I)/2025 on Tuesday, making amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
According to the SECP, a “Shariah Compliant Scheme” refers to a Collective Investment Scheme or Pension Fund recognized as Shariah-compliant under the Companies Act, 2017, in conjunction with the Shariah Governance Regulations, 2023.
Asset Management Companies must ensure continuous Shariah compliance for these schemes and adhere to the Shariah compliance certification conditions outlined in the Shariah Governance Regulations, 2023.
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The SECP emphasized that any Shariah-compliant scheme launched after the enactment of the Shariah Governance Regulations, 2023, that has not yet obtained the Shariah compliance certificate must do so by the deadline of September 30, 2025.
Additionally, the SECP has clarified that an annual report by Shariah Auditors, as stipulated under regulation 29(5) of the Shariah Governance Regulations, 2023, must be submitted to the Board of Directors.
The SECP further stated that Shariah-compliant schemes that are identical to those already certified by the Commission, in terms of structure, Islamic financing methods, and terms, except for differences in commercial aspects like pricing and issue size, will not need a separate Shariah compliance certificate.
However, the Asset Management Company must submit Form E in compliance with the Shariah Governance Regulations, 2023, before launching such schemes.
The Asset Management Company must ensure that all new and supplementary Constitutive Documents for Shariah-compliant schemes align with the provisions of Schedules III, IV, VII, and VIII, which pertain to Shariah compliance.
Furthermore, the SECP mandates that the Asset Management Company amend existing constitutive documents within the timeframe specified by the Commission.
