PSX launches Portfolio Purification Facility
KARACHI (Staff Report): Investors holding non-Shariah-compliant stocks can now divest and purify their portfolios, as Pakistan Stock Exchange (PSX) has launched its dedicated Shariah-Compliant Trading Counter.
The facility, launched on October 29 after approval of Shariah Trading Counter Regulations by the Securities and Exchange Commission of Pakistan (SECP), provides a dedicated end-to-end ecosystem for Islamic investing.
Under the new framework, investors can move to the Shariah counter and divest their non-compliant holdings to purify their portfolios, a long-standing demand of investors seeking fully halal investment.
The launch was marked with a Gong Ceremony attended by representatives of SECP, State Bank of Pakistan (SBP), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL) and Pakistan Stock Brokers Association (PSBA), along with Shariah scholars and participating brokerage houses.
According to PSX, thirty-nine brokers have been onboarded to offer Shariah-compliant trading through Islamic windows, while two more brokerage houses have been licensed as full-fledged Shariah-compliant brokers.
The counter is governed by operational procedures and regulations prescribed by the Exchange and approved by the Commission.
Trading on the counter will be limited to Shariah-compliant equities, Government Ijarah Sukuk and Corporate Sukuk, while non-compliant securities are prohibited. Interest-based leverage products such as Margin Trading System (MTS) are blocked, with Murabaha Share Financing (MSF) offered as the Shariah-compliant alternative. Short selling and derivative trading are also not permitted.
Investors will open accounts, including Sahulat Accounts, through a Shariah-compliant Customer Relationship and Risk Disclosure Document.
In addition, PSX has launched a new Shariah Portal on the PSX Data Portal which lists every Shariah-eligible stock and Sukuk, bringing greater transparency for investors seeking Islamic options.
“By providing a dedicated trading environment supported by system-based compliance controls, this initiative enhances investor confidence, improves accessibility to Islamic investment opportunities, and further strengthens the country’s Islamic capital market ecosystem,” said Farrukh H. Sabzwari, MD & CEO, PSX.
He noted that investor accounts have now passed 650,000, with Millennials and Gen Z driving much of the new participation. He added that the platform is expected to draw more investors from Pakistan’s predominantly Muslim population.
SECP Commissioner Imtiaz Haider said that with a significant proportion of listed equity securities and mutual fund assets already Shariah-compliant, the initiative will help broaden market participation and strengthen investor confidence.
Dr. Tariq Naseem, Head of Islamic Finance, SECP, outlined next steps including expanding digital retail Sukuk, introducing Shariah-compliant tools for liquidity and risk management, and strengthening the legislative framework for Islamic financial services.
For investors who were previously hesitant to enter the stock market due to Shariah concerns, the purification option provides a clear path to align their investments with Islamic principles.