Recent amendments in Murabaha Share Financing

Karachi, April 15, 2021 (PPI-OT): National Clearing Company of Pakistan Limited (NCCPL) had launched Murabahah Share Financing (MSF) system back in September 2019, following the Regulations approval from Securities and Exchange Commission of Pakistan (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 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 shariah mode of financing.

While carrying the quest of continuous progression and meeting the requirements of capital market participants, NCCPL, with the consultation and guidance of SECP, has introduced amendments in MSF Regulations. In this very development, a system-based initiation and affirmation process has been introduced for Murabaha Sale Transaction.

This will further simplify the process to execute sale transactions in the more efficient manner. 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. 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. At NCCPL, we are positive that with the recent amendments, Capital Market participants will find more attraction in the said product, resulting into better liquidity.

For more information, contact:
Head Office,
National Clearing Company of Pakistan Limited (NCCPL)
8th Floor, Karachi Stock Exchange Building,
Stock Exchange Road
Karachi – 74000, Pakistan
Tel: +92-21-32460811-19
Fax: +92-21-32460827
Email: info@nccpl.com.pk
Website: www.nccpl.com.pk

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