ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has approved the regulations for issuance of Sukuk as part of its mandate to develop the Islamic capital market and to facilitate fund raising through Shariah Compliant financial products.
The draft of the regulations was earlier notified for soliciting public comments thereon. The Sukuk Regulations, 2015 (the Regulations) has been made under Section 506A of the Companies Ordinance, 1984 (the Ordinance).
A developed Islamic capital market can play vital role in the economic growth of a country. Currently, Sukuk are issued as an instrument of redeemable capital under Section 120 of the Ordinance mainly through private placements.
The regulations in addition to the disclosure and reporting requirements also require appointment of the Shariah Advisor and Investment Agent. Shariah Advisor will help in structuring of Sukuk ensuring that these are structured according to the Shariah principles. The regulations prescribe certain conditions to be met before issuance of Sukuk and the eligibility criteria for the issuers.
