Karachi: The Pakistan Stock Exchange (PSX) has announced the induction of AL Habib Islamic Savings Fund as a trading participant for proprietary account trading in Government of Pakistan (GoP) Ijarah Sukuk (GIS). This induction follows approval from the Securities and Exchange Commission of Pakistan (SECP), marking a significant step in enhancing market participation for non-broker institutions.

According to a notice dated July 21, 2025, the approval was granted under the proviso to Regulation 6.1(q) of the PSX Rulebook. This regulatory change allows Commercial Banks and Mutual Funds, specifically those who are Non-Broker Debt Market Clearing Members (DMCMs) of the National Clearing Company of Pakistan Limited (NCCPL), to engage in proprietary trading of GIS instruments. The process involved detailed compliance with documentary, operational, and technical requirements.

According to information available from the Pakistan Stock Exchange (PSX), the newly inducted trading participant, AL Habib Islamic Savings Fund, is now authorized to trade GIS instruments issued through primary market auctions held at the PSX. However, the fund's trading activities will be restricted to its proprietary account and will not extend to other fixed income securities within the Bills and Bonds (BnB) market, such as Corporate Debt Securities and Government Debt Securities.

The integration of AL Habib Islamic Savings Fund into the trading system is expected to facilitate better access and participation in the GIS market segment, a key component of Pakistan's financial instruments landscape. This move aligns with the broader objectives of the PSX to diversify trading participation and enhance the depth of the market through strategic regulatory enhancements.