Daily Times

ISLAMABAD: Pakistan Stock Exchange (PSX) would have an exclusive trading counter for the Shariah-compliant listed securities where settlement would be done on the trading day instead of T+3 system for rest of the stocks, according to an Securities & Exchange Commission of Pakistan (SECP) statement.

The Shariah Advisory Board (SAB) of the SECP, in its ninth meeting, reviewed the proposal of Shariah-compliant trading counter submitted by Pakistan Stock Exchange. The main distinctive feature of the proposal was to convert the T+2 settlement system into T+0 mechanism for the Shariah-compliant securities listed on the PSX. The proposal aims to help those who invest in the Shariah-compliant securities by reducing price risk associated with the T+2 settlements. Shariah principles require that shares cannot be sold until the delivery is tendered into the buyer’s account. In the proposed concept, the obstacle is addressed and the T+0 settlement mechanism is being introduced for Shariah-sensitive investors.

Published in Daily Times, November 24^nd 2017.