Securities and Exchange Commission of Pakistan approves Islamic brokerage windows for five brokers.
Published On 13 May, 2026
The initiative will allow investors to carry out stock market transactions in accordance with Islamic financial principles through segregated trading operations. Under the approved framework, brokers will only be permitted to invest client funds in Sharia-compliant shares, Sukuk and Islamic Exchange Traded Funds (ETFs).
According to the regulator, each brokerage house will maintain separate Islamic operations, including dedicated trading systems and segregated client and company bank accounts operated through Islamic banks to ensure transparency and compliance with Sharia requirements.
Trading conducted through these Islamic windows will be restricted to Shariah-compliant listed companies, including firms that are part of the PSX-KMI All Share Islamic Index, along with Sukuk and Islamic ETFs.
The approvals were granted after the SECP reviewed each broker’s operational framework, governance mechanisms, compliance arrangements and Sharia opinions.
Officials described the Islamic window structure as a phased regulatory model designed to help conventional brokerage firms gradually expand into Islamic financial services while remaining within the country’s existing regulatory system and international best practices.
The SECP said the initiative is expected to encourage both retail and institutional participation in Islamic financial products and support the broader development of an ethical and inclusive financial system in Pakistan.
