Enhancing the Short-Term Sukuk Market in Pakistan: SECP’s Revolutionary Concept Papers
The Securities and Exchange Commission of Pakistan (SECP) has unveiled two concept papers to revolutionize the country’s short-term listed Sukuk market. These papers aim to strengthen the regulatory framework for these instruments and stimulate public consultation on key issues.
Currently, Pakistan’s capital market offers Shariah-compliant borrowing solutions through sovereign Ijara Sukuk. However, the existing structure does not support the issuance of short-term tradeable Sukuks with 3, 6, or 9-month maturities.
SECP is exploring alternative Shariah-compliant structures to facilitate the issuance of shorter-term Sukuks, which are gaining popularity among investors. The concept paper on corporate Sukuks also seeks to streamline the listing process, reduce regulatory costs, and enhance flexibility in appointing intermediaries.
Proposed measures include a condensed version of the Prospectus, electronic publication, and shortened approval timelines. These changes are set to improve procedural efficiency and make it easier for issuers to tap into a larger investor base through listed short-term Sukuks.