Dawood Equities establishes Islamic brokerage window

PAKISTAN: Dawood Equities (DEL), a licensed broker and TRE Certificate Holder of the Pakistan Stock Exchange (PSX), has established an Islamic brokerage window under Shariah guidelines developed and certified by Al Hilal Shariah Advisors, which has also been engaged for ongoing Shariah oversight to ensure continued compliance.

Under the framework, all transactions through the window are restricted to Shariah compliant securities approved by the Shariah adviser in accordance with eligibility criteria and financial screening thresholds prescribed by the Securities and Exchange Commission of Pakistan (SECP) under the Shariah Governance Regulations 2023.

The guidelines prohibit transactions involving derivatives, futures, options and similar instruments unless a Shariah compliant alternative is expressly approved, and bar short selling, blank selling and any interest-based leverage or conventional margin financing. Only Shariah compliant financing arrangements, whether direct or via approved third-party structures, may be offered to window clients. Al Hilal's oversight scope encompasses alignment with guidelines issued by the PSX and the SECP, including proposed amendments to PSX regulations on Shariah compliant securities trading under Chapter 4A.

DEL has committed to operationalizing the window within a defined implementation timeline while maintaining strict segregation of its Islamic brokerage window activities.