The Securities and Exchange Commission of Pakistan (SECP) has delegated the authority to grant Shariah compliance certificates to companies to the Commissioner of the Islamic Finance Department. This move is part of SECP’s efforts to streamline and enhance regulatory processes in the financial sector.
According to the notification, the Commissioner of the Islamic Finance Department is now formally authorized to grant Shariah compliance certificates to companies using a prescribed format known as Form B. Additionally, the commissioner has the authority to suspend or cancel previously granted Shariah compliance certificates under these regulations.
SECP clarified that the commissioner will have concurrent authority with the Commission to exercise the powers and functions delegated. In cases where the Head of the Islamic Finance Department position is vacant or the designated authority is unable or unavailable to perform their functions, the powers and functions delegated will automatically transfer to the Commissioner, ensuring the continued smooth operation of regulatory activities.
Importantly, this notification does not invalidate any prior actions or decisions made under earlier notifications, and all such actions remain valid and under lawful authority. Pending proceedings under previous notifications will be transferred to the delegated authority, ensuring continuity and efficiency in the regulatory process.
This delegation of authority is expected to streamline the process of obtaining Shariah compliance certificates and enhance regulatory efficiency in the Islamic finance sector in Pakistan.