The Securities and Exchange Commission of Pakistan (SECP) has announced its decision to propose a key amendment to the Companies Act, 2017. The amendment aims to introduce the concept of dedicated management companies and enable their licensing and regulations under a dedicated leg.
The proposed section 42A will empower the SECP to license companies for the management of dedicated assets, which will serve as profitable companies. These companies will be responsible for the management and management of strict assets as per the objectives of Shariah principles and dedication.
With this important move, Pakistan’s first formal move is to corporate the rule of dedication, Islamic finance, federation stress, and to invest globally in the best way of investing social impact. The proposed framework will enable the formation of a modern dedicated structure, such as cash dedicated and investing dedicated, thus paving the way for good reasons through income from financial assets.
In addition, the development of dedicated-left and dedicated dedicated mutual funds will help establish a new section of Islamic social finances in Pakistan’s regular financial markets, which will increase the mobilization of the capital for charitable and development purposes.
Under the proposed framework, the actions of dedicated management companies will be subject to strong security measures and regulatory terms.
These include instability of dedicated goals, which cannot be changed or changed. Permanent protection of dedicated corpuses, limiting its sale, covenant or contradiction, except where it is clearly allowed by the goals of dedicated. And compliance with the Shariah principles and standards that are proposed by the SECP.
In addition, these companies will need to maintain strong government, reporting, and sincere control, which reflects the religious and charitable nature of the dedication. The ongoing regulatory monitoring will include Sharia compliance monitoring and appointment of eligible Shariat Advisors. Any non -compliance with the framework can result in laws and regulatory restrictions provided under the law.
The move is in line with the widespread vision of Islamic social finance institutes, promoting confidence -based assets, and a wider vision for public benefit through structural, transparent, and professional operators for channel dedicated assets.