The Securities and Exchange commission of Pakistan (SECP) notified disclosure requirements for enlisted publicly traded companies and their subsidiaries which are not according to Shariah business rules in their main business activities.
Section 4th of the companies act amended by SECP according to which all the listed companies and their subsidiaries will disclose their basic business which are found non engaged in Sharia non permissible activities in their business. According to section 228 of securities act 2017 every standalone or consolidated or merged business statement should be noted with cross reference relevant note.
To show the financial position disclosure requirements should be prominent.
Financial obligations are as under.
- long-term, short-term or lease financing obtained according to Islamic mode.
- Amount earned by interest or markup under conventional loan
Assets are according to,
- Long-term and short-term submissive investment
- Bank balance and deposits according to Shariah
Statement of comprehensive Income,
- Profit or loss would be equally submissive just according to Shariah rules and regulations
- Installments of late compensative payments
- Revenue of Shariah business
- Profit of exchange from actual currency
- Profit which is paid by Islamic mode of currency
- Source of all shariah compliant and non compliance activities and installations.
This disclosure is made to implement the Securities act and bound the businessmen to work accordingly with shariah rules and regulations so that no common people or new comers in the industries suffer of fraud and loss. For this purpose shariah non permissible activities are imposed but not limited to conventional financial establishment like conventional banks, interest based banking systems,insurance companies, non-halal production companies , tobacco containing items and other such production which are restricted to use in Islam. The Securities and Exchange commission of Pakistan SECP imposed this disclosure regulations in accordance with securities act 2017.
