The National Clearing Company of Pakistan Limited (NCCPL), with the consultation and guidance of the Securities and Exchange Commission of Pakistan (SECP), has introduced amendments to the Murabahah Share Financing (MSF) Regulations in order to maintain continuous progress and meet the needs of capital market participants.

A system-based initiation and affirmation mechanism for Murabaha Sale Transactions has been developed in this development.

Following SECP’s approval of the Regulations, NCCPL implemented the MSF system in September 2019. The MSF is an NCCPL product that provides a shariah-compliant leverage facility to investors in Pakistan’s capital market.

The system was established with thorough discussion and direction from SECP’s Shariah Advisory Board and prominent Shariah scholars representing reputable Islamic institutions, and it has now proven to be a very tempting choice for investors interested in shariah financing.
The revisions will make the process of completing sales deals more efficient.

Option for collateral management has also been provided to help MSF Sellers and market participants execute Murabaha Share Financing and the release of shares in exchange for cash or other collateral.

This would make it easier and more comfortable for Islamic Financial Institutions (IFIs) and market players to perform sell transactions.

According to a statement released by the company, “we are confident that with the recent revisions, Capital Market participants would find more appeal in the mentioned product, resulting in higher liquidity.”