The Securities and Exchange Commission of Pakistan (SECP) has authorized significant amendments to Pakistan Stock Exchange (PSX) Regulations, compelling the bourse to publicly disclose all disciplinary actions taken against listed companies to bolster market transparency and safeguard investors.

According to SECP information today, under the revised framework, the PSX is now required to post details of sanctions against firms on its website. This measure is intended to equip investors with critical information for making more informed decisions and to improve overall disclosure standards for all market participants.

A key component of the reforms targets the Shariah-compliant segment of the capital market. Listed companies will now be obligated to submit Shariah-related financial data on their income, loans, and investments directly to the PSX.

This direct reporting mechanism is designed to provide the exchange with accurate and timely information for Shariah screening, thereby enhancing the reliability and credibility of Islamic indices, such as the KMI All Share Index.

To further develop this sector, the PSX has been advised to establish and maintain its Shariah Indices (KMI Indices) within the next 12 months, with the option to manage them in-house or through an independent third party.

The new rules also facilitate the expansion of Islamic financial services by introducing provisions for Shariah-compliant brokerage and dedicated account opening forms, including Customer Relationship Forms and Sahulat Account Opening Forms, simplifying the process for investors to open Islamic trading accounts.

These regulatory changes aim to cultivate a more transparent, efficient, and inclusive capital market, addressing the growing investor demand for trustworthy Shariah-compliant investment opportunities within Pakistan.