While carrying the quest of continuous progression and meeting the requirements of capital market participants, 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 in Murabahah Share Financing (MSF) Regulations.
In this very development, a system-based initiation and affirmation process has been introduced for Murabaha Sale Transaction.
NCCPL had launched the MSF system back in September 2019, following the Regulations approval from SECP. The MSF is a product of NCCPL providing the shariah-compliant leverage facility for the investors of the capital market of Pakistan.
The system has been developed through extensive consultations and guidance from the Shariah Advisory Board of SECP and renowned Shariah scholars representing reputed Islamic banks, which has now turned out to be a very appealing option for the investors interested in the shariah mode of financing.
The amendments will further simplify the process to execute sale transactions more efficiently.
Further, options for collateral management have been added to facilitate MSF Seller and market participants in executing Murabaha Share Financing and release of shares against payment of cash or other collateral.
This will facilitate Islamic Financial Institutions (IFIs) and market participants to execute sale transactions with more ease and comfort.
At NCCPL, we are positive that with the recent amendments, Capital Market participants will find more attraction in the said product, resulting in better liquidity, a statement issued by the company said.