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.
The commission issued a notification, S.R.O. 1349 (I)/2023 on Friday, formally authorizing the Commissioner of the Islamic Finance Department to grant Shariah compliance certificates to companies in a prescribed format, known as Form B.
This development comes as part of SECP’s ongoing efforts to streamline and enhance regulatory processes in the financial sector. Additionally, the commissioner now also possesses the authority to suspend or cancel Shariah compliance certificates previously granted under these regulations.
SECP has also clarified that the commissioner will have concurrent authority with the Commission to exercise the powers and functions delegated.
In cases where the post of the Head of the Islamic Finance Department is vacant, or if the designated authority is unable or unavailable to perform their functions, the powers and functions delegated through this notification will automatically transfer to the Commissioner. This provision ensures the continued smooth operation of regulatory activities.
SECP emphasized that 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 move by the SECP is expected to streamline the process of obtaining Shariah compliance certificates and enhance regulatory efficiency in the Islamic finance sector.
Either the law itself is an admission of the fact that SECP was operating against the constitution or they want to facilitate a SECT instead of implementing Shariah.