BRR Guardian Limited (PSX: BRRG), a key player in Pakistan’s financial services sector, has achieved a major regulatory milestone with the issuance of a Shariah Compliance Certificate by the Securities and Exchange Commission of Pakistan (SECP). This certification signals the company’s official recognition as a Shariah-compliant entity and sets the stage for its integration into the rapidly growing Islamic financial ecosystem in the country.
According to a filing submitted by BRRG to the Pakistan Stock Exchange, the certification is subject to strict regulatory conditions. These include mandatory adherence to the Companies Act, 2017, and all related regulations issued by the SECP. The company must also fully comply with directives, circulars, codes, notifications, and guidelines issued or that may be issued by the SECP, its Shariah Supervisory Board, or an appointed Shariah Advisor in the future.
One of the pivotal requirements of the certification is the company’s commitment to ongoing Shariah oversight. BRRG is now obligated to submit an annual Shariah review report to the regulatory body, as well as any additional reports as stipulated under prevailing laws. These reviews are intended to ensure the company maintains strict compliance with Islamic financial principles in all its operations.
The certificate granted by the SECP will remain valid indefinitely unless voluntarily surrendered by BRRG or revoked or suspended by the Commission due to non-compliance or other regulatory breaches. This underscores the importance of sustained adherence to the principles of Islamic finance, beyond the initial certification.
In a significant structural move, BRRG is now required to amend its Memorandum of Association. This amendment will explicitly state that the company’s objectives include conducting all business activities in accordance with Shariah principles. This change is not only a legal requirement but also represents a fundamental shift in how the company will approach its operations and strategic vision.
Additionally, the company has been directed to implement a robust Shariah Governance Framework. This framework will be critical for maintaining ongoing compliance and for ensuring that all financial practices, product offerings, and internal controls align with the principles of Islamic finance. The framework is expected to include mechanisms for internal audits, advisory consultations, and real-time compliance monitoring.
In terms of financial reporting, BRRG is also encouraged to adopt the Islamic Financial Accounting Standards. This will ensure that its financial statements present a true and fair view in accordance with the unique nature of Islamic finance, which prohibits interest-based transactions and emphasizes risk-sharing and ethical investing.
The issuance of this certificate by SECP is not just a regulatory endorsement but a strategic enabler for BRRG. It opens the door to a broader investor base interested in Shariah-compliant financial instruments and aligns the company with Pakistan’s growing Islamic finance market, which is gaining traction both domestically and internationally.
This development further highlights the SECP’s active role in promoting Islamic finance in Pakistan by ensuring that companies not only declare Shariah compliance but also uphold it through transparent governance and continuous oversight. For BRRG, this marks a new chapter in its journey towards ethical, inclusive, and regulation-aligned financial operations.