SECP amends murabaha rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced amendments in the Murabaha Share Financing Regulations, a statement said on Monday.

Murabaha Share Finance is a Shariah-compliant leveraged product, a viable alternative avenue for capital market investors who prefer the Islamic mode of financing, it added. The product was initially launched in September 2019 with the guidance of renowned practicing Shariah scholars. However, through recent amendments, a system-based initiation and affirmation process has been introduced for Murabaha sale transaction, it said.

This will facilitate Islamic Financial Institutions (IFIs) and market participants to execute sale transactions with more ease and comfort.