Karachi: The Pakistan Stock Exchange (PSX) has enacted significant amendments to its regulations to accommodate Shariah-compliant securities trading, effective from September 23, 2026. The changes, approved by the Securities and Exchange Commission of Pakistan (SECP), introduce Chapter 4A, titled "Shariah-Compliant Securities Trading," within the PSX Regulations. This development follows the public notification of proposed amendments on February 20, 2026, in accordance with Section 7 of the Securities Act, 2015.
The new chapter outlines comprehensive definitions and criteria for operating as a Shariah-Compliant Securities Broker, along with a framework for ongoing compliance. According to information available from the Pakistan Stock Exchange (PSX), these amendments aim to ensure that all trading activities adhere to Shariah principles. The revised regulations are accessible in the Legal Framework section of the PSX website.
In conjunction with the introduction of Chapter 4A, the PSX has detailed operational procedures for Shariah-Compliant Securities Brokers. These procedures set structural and operational benchmarks necessary for market participants to maintain compliance. A comprehensive procedural document is available for download on the PSX website.
Moreover, the PSX has crafted a specialized Risk Disclosure Document under Clause 13(1) of the Securities Broker (Licensing and Operations) Regulations, 2016. This document provides essential information on the risks associated with trading and investment in Shariah-compliant securities and products. Customers are required to thoroughly review this document before executing trades and onboarding accounts. The specimen document can be accessed through the PSX's online resources.
The PSX has also developed dedicated account opening forms, including the Customer Relationship Form (CRF) and the Sahulat Account Opening Form, specific to Shariah-compliant brokerages. As previously announced in PSX Notice No. PSX/N-1298, dated December 02, 2025, these standardized forms, along with associated terms and conditions, must be used by Shariah-Compliant Securities Brokers for all new account originations. These documents are available on the PSX website's resources section.
Market participants and securities brokers are advised to align their institutional practices with the newly enacted provisions to ensure compliance.