The Securities and Exchange Commission of Pakistan (SECP) has introduced changes to the Islamic Shariah All‑Share Index screening criteria in a move aimed at strengthening investor trust and encouraging broader participation in Shariah‑compliant stocks.
The revision focuses on adjusting the limits related to non‑Shariah compliant debt and investment levels for companies to qualify for inclusion in the index.
Under the updated rules, companies seeking to be part of the Islamic Shariah Index can hold slightly higher proportions of non‑compliant debt and interest‑bearing assets than before.
This change is designed to reflect current market realities and support a larger number of firms in meeting the requirements for Shariah‑compliant status. By widening eligibility, the SECP hopes to attract more investors who prefer Islamic investment options.
Market analysts say the revision could help deepen Pakistan’s capital markets by making Shariah‑based investing more accessible. Shariah‑compliant funds and investors often look to the index as a benchmark, and broader inclusion means more opportunities for portfolio diversification.
Investors have reacted positively to the announcement, with increased interest seen in shares expected to qualify under the new rules. Brokers say clearer, more inclusive screening may also bring fresh liquidity into the market.
The SECP has said it will continue to review and refine regulatory frameworks to support market growth while ensuring compliance with best practices.