The Pakistan Stock Exchange (PSX) has launched a dedicated trading counter for investors who want to buy and sell shares and other securities that comply with Islamic principles.
The launch follows approval of the Shariah Trading Counter Regulations by the Securities and Exchange Commission of Pakistan (SECP). The new system provides retail and institutional investors with a dedicated platform for Shariah-compliant investments.
A total of 39 brokerage firms have joined the initiative through their Islamic windows, while two other brokerage houses are licensed to operate exclusively as Shariah-compliant brokers.
Trading on the counter is restricted to Shariah-compliant shares, government Ijarah Sukuk and corporate Sukuk. Interest-based financing products, short selling and derivatives trading are not allowed.
Instead, investors can use Murabaha Share Financing (MSF), a Shariah-compliant alternative to conventional share financing. Investors can also sell non-compliant holdings to help bring their portfolios into line with Islamic investment principles.
PSX has also introduced a Shariah portal on its Data Portal, where investors can check which shares and Sukuk are eligible for Islamic investment.
Investors can open regular trading accounts or Sahulat Accounts using a Shariah-compliant customer relationship and risk disclosure document.
PSX Managing Director and CEO Farrukh H. Sabzwari said the new system would improve access to Islamic investment opportunities and strengthen investor confidence.
He added that the number of investor accounts at the exchange had crossed 650,000, with Millennials and Gen Z contributing significantly to new participation.
SECP Commissioner Imtiaz Haider said the initiative could attract more investors and create opportunities for brokerage firms.
The SECP also plans to expand digital retail Sukuk and introduce Shariah-compliant tools for liquidity and risk management.
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