PSX Launches Shariah-Compliant Trading Counter for Islamic Investors

The new platform allows investors to trade eligible shares and Sukuk under dedicated compliance controls, with 39 brokers onboarded to provide the service.

The Pakistan Stock Exchange (PSX) has launched a Shariah-Compliant Trading Counter to expand access to Islamic investment opportunities for retail and institutional investors.

The launch follows the Securities and Exchange Commission of Pakistan’s (SECP) approval of the Shariah Trading Counter Regulations. The new facility provides a dedicated trading environment with system-based controls designed to ensure that transactions follow Shariah requirements.

PSX marked the launch with a gong ceremony attended by representatives of the SECP, State Bank of Pakistan (SBP), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Pakistan Stock Brokers Association (PSBA), Shariah scholars and participating brokerage houses.

According to PSX, 39 brokers have joined the initiative and will offer Shariah-compliant trading through their Islamic windows. Two additional brokerage houses hold licences to operate as fully Shariah-compliant brokers.

The counter permits trading in Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk. It prohibits transactions in securities that do not meet Shariah requirements.

The facility also blocks interest-based leveraged trading products, including Margin Trading System (MTS). Investors can instead use Murabaha Share Financing (MSF), which is offered as a Shariah-compliant financing alternative. Short selling and derivatives trading are not permitted under the counter’s rules.

Investors can also sell non-compliant securities held in their portfolios to help purify their investments.

To improve access to information, PSX has introduced a Shariah Portal on its Data Portal. The new portal provides a list of Shariah-eligible stocks and Sukuk, helping investors identify securities that meet the relevant requirements.

Investors can open regular trading accounts or Sahulat Accounts through a Shariah-compliant Customer Relationship and Risk Disclosure Document.

PSX Managing Director and Chief Executive Officer Farrukh H. Sabzwari said the dedicated trading environment would improve access to Islamic investment opportunities and strengthen investor confidence. He added that investor accounts at the exchange had exceeded 650,000, with Millennials and Generation Z contributing significantly to new participation.

Sabzwari said the new facility could attract more investors from Pakistan’s predominantly Muslim population by providing a dedicated platform for Shariah-compliant investing.

SECP Commissioner Imtiaz Haider said a significant proportion of listed equities and mutual fund assets already complied with Shariah requirements. He added that the new counter could broaden market participation, create opportunities for investors and brokerage firms, and strengthen confidence in Islamic investment products.

Meanwhile, Dr. Tariq Naseem, Head of Islamic Finance at the SECP, outlined further steps to develop the Islamic capital market. These include expanding digital retail Sukuk, introducing Shariah-compliant liquidity and risk-management tools, and strengthening the legal framework for Islamic financial services.

The launch marks another step in developing Pakistan’s Islamic capital market by giving investors a dedicated route to trade eligible securities under defined Shariah-compliance rules.