SECP Sets Deadline for Shariah Compliance Certification of Investment Schemes

The Securities and Exchange Commission of Pakistan (SECP) has announced that the Shariah-compliant scheme launched after the promulgation of the Shariah Governance Regulations, 2023, would be required to obtain a Shariah compliance certificate till September 30, 2025. The SECP has issued S.R.O.600(I) /2025 here on Tuesday to amend Non-Banking Finance Companies and Notified Entities Regulations, 2008. As per SECP, the “Shariah Compliant Scheme” means Collective Investment Scheme/Pension Fund that has been declared Shariah-compliant under the Companies Act, 2017, read with the Shariah Governance Regulations, 2023. The Asset Management Company would ensure ongoing Shariah compliance in case of Shariah-compliant schemes and comply with the conditions of certification of Shariah compliance under the Shariah Governance Regulations, 2023. Provided that any Sharia-compliant scheme launched after the promulgation of the Shariah Governance Regulations, 2023, that did not obtain a Shariah compliance certificate shall obtain the same till September 30, 2025, SECP directed. An annual report by Shariah Auditors as required under regulation 29(5) of the Shariah Governance Regulations, 2023, shall be submitted to the Board of Directors, SECP said. The SECP added that Shariah compliant schemes similar to an already declared Shariah compliant scheme by the Commission, having the same underlying structure, mode of Islamic financing, and terms and conditions except for variations in commercial terms such as pricing, issue size, etc. shall not be required to obtain a separate Shariah compliance certificate. However, the Asset Management Company shall be required to submit Form E in accordance with the Shariah Governance Regulations, 2023, before the issuance of such other schemes. In case of a Shariah Compliant Scheme, the Asset Management Company shall ensure that all new and supplemental Constitutive Documents are in line with the clauses prescribed under Schedules III, IV, VII, and VIII relating to Shariah compliance. Provided that the Asset Management Company shall amend existing constitutive documents within such time as may be specified by the Commission, SECP added.