Pakistan’s Financial Regulatory Agency Amends Murabahah Share Financing Regulations to Facilitate Islamic Finance Sale Transactions

The Security and Exchange Commission of Pakistan (SECP), which acts as the country’s financial regulatory agency, has introduced amendments in Murabahah Share Financing (MSF) Regulations to promote Islamic finance products in the capital market.

Why it Matters?

MSF is a Shariah-compliant product which provides a viable alternate for capital market investors who prefer Islamic financing. The amendment, which includes a system-based initiation and affirmation process, will facilitate Islamic Financial Institutions and market participants to fulfil sale transactions more easily. In addition, options for collateral management have been added to facilitate MSF sellers and participants to execute MSF and release of shares against cash payments or oth...