ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued circular in order to promote the Islamic capital market and facilitate review of the Pakistan Stock Exchange’s All Shares Islamic Index (ASII).
The circular requires listed companies to disclose in their annual and half-yearly accounts, certain specific information in terms of Shariah compliance or otherwise to facilitate the PSX in fairly maintaining its newly developed the ASII. The disclosures to be made under the circular include disclosure of loans, advances, deposits, revenue, profits, gains, income, losses, bank balances etc. separately based on Shariah-compliant mode and conventional mode.
The ASII has been developed to use it as a benchmark to measure the price performance of investments in Shariah-compliant shares. It comprises all listed companies that are Shariah-compliant as per the Shariah and technical screening criteria of PSX. At present, 238 listed companies are included in the said index. The PSX will review the index on a semi-annual basis.
Earlier, Ishaq Dar, the Finance Minister, had constituted a steering committee for development of Islamic banking and finance. The committee comprised of senior officers from the State Bank, SECP, capital market and banking sector’s experts, Shariah scholars and businessmen. In order to facilitate and encourage investors and fund managers looking for Shariah-compliant investment avenues, the committee recommended development of the ASII. The index was launched by the honorable Finance Minister on November 19, 2015.
