SECP enhances Shariah disclosure

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to enhance disclosures for Shariah stock screening of listed companies, aiming to boost transparency and investor confidence.

"The SECP has proposed amendments to the Fourth Schedule of the Companies Act, 2017," the regulator said in a statement on Tuesday. "These amendments enhance the list of disclosures made in financial statements of listed companies for Shariah stock screening of shares."

Listed companies will be required to provide crucial information about their subsidiary companies for Shariah stock screening purposes in order to align the regulatory framework with market needs for a fair-trading environment.

Additionally, the language of the Fourth Schedule has been simplified to bring clarity to the Shariah stock screening of shares to include in Islamic indices maintained by the Pakistan Stock Exchange.

"The proposed revisions have resulted from SECP's engagements with stakeholders during a series of Islamic finance sessions," the statement said. "The changes are aimed at enhancing transparency, fostering investor confidence and aiding in informed decision making."The SECP has published a consultation paper containing the objectives and details of the proposed amendments in comparative format and draft notification.