SECP allows five brokerage firms to launch Islamic trading windows

The Securities and Exchange Commission of Pakistan (SECP) has allowed five brokerage firms to introduce dedicated Shariah-compliant trading services through Islamic “windows,” enabling investors to participate in halal equity investments. This move is expected to broaden Shariah-compliant investment avenues in Pakistan’s capital market and encourage participation from both individual and institutional investors seeking Islamic financial products. Under the approved structure, brokers will channel investor funds exclusively into Shariah-compliant equities, Sukuk, and Islamic Exchange-Traded Funds (ETFs) through separately maintained Islamic brokerage units. The regulator granted approvals after assessing the brokers’ business models, governance systems, compliance frameworks, and Shariah advisory arrangements. As part of the framework, each brokerage house will operate a distinct Islamic segment with dedicated systems, along with separate client and proprietary accounts maintained with Islamic banking institutions to ensure transparency and adherence to Shariah principles. Trading under these Islamic windows will be limited to Shariah-compliant securities, including companies listed in the PSX-KMI All Share Islamic Index, as well as Sukuk instruments and Islamic ETFs. Officials described the Islamic window model as a gradual and facilitative approach that enables conventional brokers to expand Shariah-compliant offerings within the existing regulatory structure. The model, aligned with international practices, is expected to support the long-term development of Pakistan’s Islamic capital market. The initiative is also aimed at attracting a wider base of investors and strengthening an inclusive, ethical financial ecosystem in the country. Pakistan records remittances inflow of $3.5 billion in April 2026