ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved Al-Hilal Shariah Advisors (Pvt) Limited to conduct Shariah screening of securities independently. It is the first entity other than the Pakistan Stock Exchange (PSX) and its partners to receive such approval, opening the door for greater competition in Shariah-compliant investment services.
Under the Shariah Governance Regulations, 2023, any person other than an issuer who publicly declares securities as Shariah-compliant is required to develop a Shariah screening process approved by SECP. The approval granted to Al-Hilal Shariah Advisors provides a structured regulatory pathway for alternative Shariah screening arrangements.
Currently, listed securities are screened for Shariah compliance by the Pakistan Stock Exchange in collaboration with Meezan Bank Limited and Al-Meezan Investments. Out of a total of 535 listed securities at PSX, 308 are currently classified as Shariah-compliant. These companies represent a market capitalization of Rs. 12,373 billion, accounting for approximately 63 percent of the total market capitalization of Rs. 19,679 billion as of December 31, 2025. The data also reflects a growing trend among listed companies towards Shariah compliance in recent years.
Al-Hilal Shariah Advisors (Pvt) Limited is an SECP-licensed Shariah Advisor providing Shariah advisory, governance, and compliance services to capital market participants, financial institutions, and corporate entities. The company also offers investment advisory services in its capacity as a securities advisor.
The approval enables the company to independently screen securities for Shariah compliance for the benefit of its clients and the general public.
A key feature of the approved process is the use of the latest available financial information for screening purposes. The process also establishes clearly defined continuity rules for the inclusion and exclusion of securities from the Shariah-compliant list, supported by a formal compliance mechanism to ensure adherence to regulatory requirements.
The approved methodology is expected to support the development of new Islamic indices, providing additional benchmarks for Shariah-compliant investing in Pakistan’s capital market.
SECP has granted the approval with the condition that the participant will coordinate with PSX before creating any Shariah-compliant index in the future. The updated list of Shariah-compliant securities will be published on a quarterly basis, compared to the earlier six-monthly screening cycle.
