The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the Pakistan Stock Exchange (PSX) Regulations aimed at promoting greater market transparency, strengthening investor protection, and developing a robust Shariah-compliant capital market ecosystem. The approved changes require PSX to publicly disclose all disciplinary actions taken against listed companies on its website. This will enable investors to make better-informed decisions and enhance overall disclosure to market participants, said a news release here on Monday.
Furthermore, listed companies must now provide Shariah-related disclosures on income, loans, and investments directly to PSX. This will give the exchange access to this information, allowing for accurate and timely Shariah screening for inclusion in the KMI All Share Index, thereby improving the reliability and credibility of Islamic indices. To further enhance transparency, PSX has been advised to develop and maintain Shariah Indices (KMI Indices) either itself or through an independent third party within 12 months from the date of the amendments.
The amendments also facilitate the offering of Shariah-compliant brokerage services and introduce dedicated Shariah-compliant account opening forms (Customer Relationship Forms and Sahulat Account Opening Forms). This will make it easier for investors to open Islamic trading accounts.