The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Fourth Schedule of the Companies Act, 2017.

These amendments enhance the list of disclosures made in the financial statements of listed companies for Shariah stock screening of shares.

Listed companies will be required to provide crucial information about their subsidiary companies for Shariah stock screening purposes in order to align the regulatory framework with market needs for a fair trading environment.

Additionally, the language of the Fourth Schedule has been simplified to bring clarity to the Shariah stock screening of shares to include in Islamic indices maintained by the Pakistan Stock Exchange.

The proposed revisions have resulted from SECP’s engagements with stakeholders during a series of Islamic finance sessions. The changes are aimed at enhancing transparency, fostering investor confidence, and aiding in informed decision-making.

The SECP has published a consultation paper containing the objectives a
nd details of the proposed amendments in comparative format and draft notification. The concept paper is available here.

The SECP has invited feedback and comments from all stakeholders on the proposed changes to the Fourth Schedule. Interested persons are encouraged to share feedback through email by May 21, 2024.

Source: Pro Pakistani