The Securities and Exchange Commission of Pakistan (SECP) has introduced a crucial compliance requirement for Shariah-compliant investment schemes launched after the enactment of the Shariah Governance Regulations, 2023. According to the latest directive issued through S.R.O.600(I)/2025, all such schemes must obtain a Shariah compliance certificate no later than September 30, 2025. This amendment is part of the ongoing efforts to strengthen the regulatory framework under the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
Under the updated regulations, a “Shariah Compliant Scheme” is defined as a Collective Investment Scheme or Pension Fund recognized as Shariah-compliant in accordance with the Companies Act, 2017, and the Shariah Governance Regulations, 2023. The new regulatory guidelines mandate that Asset Management Companies (AMCs) managing these schemes must ensure ongoing compliance with Shariah principles and adhere to the certification requirements laid out in the 2023 regulations.
A key requirement includes the submission of an annual Shariah audit report to the Board of Directors, as per regulation 29(5) of the Shariah Governance Regulations, 2023. Moreover, schemes that share the same underlying structure, Islamic financing mode, and terms with already certified Shariah-compliant schemes—aside from minor commercial variations such as pricing or issue size—are exempt from obtaining a separate compliance certificate. However, AMCs are required to submit Form E prior to launching such similar schemes.
The SECP has also emphasized that AMCs must ensure that all new and supplemental Constitutive Documents of a Shariah Compliant Scheme align with the specific clauses outlined in Schedules III, IV, VII, and VIII of the regulations. Additionally, any existing constitutive documents must be amended in accordance with timelines prescribed by the Commission to maintain regulatory compliance.
This development signifies SECP’s commitment to promoting transparency and standardization within the Islamic finance sector, fostering investor confidence in Shariah-compliant financial instruments across Pakistan.
