SEC granted in-principle approval for Islamic products


The SEC has granted in-principle approval for Islamic products and the policy framework for its introduction is presently being finalised by the CSE with the technical assistance of the ADB provided through the SEC.

Similarly, the SEC is also in the process of developing the policy and regulatory framework for the introduction of Structured Warrants as a possible first step towards the development of the Exchange Traded Derivatives Market.

To this end, the assistance of the ADB has been obtained. In principle approval for Special Purpose Acquisition Companies (SPACs) has also been granted by the SEC and the CSE has been requested to finalise the required policy and regulatory framework. In-principle approval has been granted by the Commission for equity Crowd Funding.

The framework having been prepared by the CSE is now ready to be submitted for stakeholder consultation. Approval was also granted to the CSE to facilitate the listing, trading and settlement of foreign currency denominated securities on the CSE and steps are currently underway to make it operative. The introduction of Green Bonds is another initiative that has been approved by the SEC. Furthermore, approval has been granted to implement a REPO transaction mechanism for corporate debt securities through the OTC trading platform of the CSE. The policy pertaining to covered short selling, stock borrowing and lending has also been approved by the Commission and the CSE is expected to go in for a process of public consultations.