ISLAMABAD: The Shariah Advisory Board of the Securities and Exchange Commission of Pakistan (SECP), in its ninth meeting, reviewed and approved the proposal of setting up a Shariah-compliant trading counter submitted by the Pakistan Stock Exchange (PSX).
The main feature of the proposal is to convert the T+2 settlement into a T+0 settlement mechanism for the Shariah-compliant securities listed on the PSX.
The proposal will help those who invest in Shariah-compliant securities by reducing the price risk associated with the T+2 settlement. Shariah principles require that shares cannot be sold until the delivery is tendered into the buyer’s account. The Shariah Advisory Board granted, in principle, approval to the Shariah-compliant trading counter at the PSX subject to proper translation of the mechanism of real-time/same day settlement in the PSX regulations.
Published in The Express Tribune, November 24th, 2017.