November 25, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has approved significant amendments to the Pakistan Stock Exchange (PSX) Regulations, introducing measures designed to raise market transparency, strengthen investor protection, and accelerate the development of Pakistan’s Shariah-compliant capital market.

Under the new framework, PSX will be required to publicly disclose all disciplinary actions taken against listed companies on its website, according to a press release.

This step aims to provide investors with clearer insight into corporate conduct, enabling more informed decision-making and improving overall market accountability.

In line with efforts to enhance Islamic finance, listed companies will now submit detailed Shariah-related information including disclosures on income, loans, and investments directly to PSX.

Access to this data will help ensure timely and accurate Shariah screening for inclusion in the KMI All Share Index, supporting the credibility and integrity of Islamic indices in Pakistan.

To further elevate transparency and standardization, PSX has also been advised to develop and maintain its own Shariah indices (KMI Indices) or engage an independent third party to do so within 12 months of the amendments.

Additionally, the reforms pave the way for improved Shariah-compliant brokerage services by introducing dedicated Islamic account opening forms, including Customer Relationship Forms and Sahulat Account Opening Forms.

These enhancements will simplify the process for investors seeking to open Shariah-compliant trading accounts.

The SECP emphasized that these regulatory upgrades reflect its commitment to building a more transparent, efficient, and inclusive capital market one that responds to the rising demand for reliable Shariah-compliant investment avenues across Pakistan.

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