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SECP Makes Fatwa Mandatory for Non-Profit Organizations to Utilize Islamic Donations

The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for charitable/non-profit associations to obtain a Shariah opinion in the form of a Fatwa from a registered Shariah Advisor for the collection and utilization of Islamic donations.

The SECP has issued an S.R.O. 1513(I)/2023 to amend Associations with Charitable and Not-for-Profit Objects Regulations, 2018 here on Thursday.

The SECP’s revised regulations revealed that it shall be the responsibility of the company to arrange a Shariah opinion in the form of a Fatwa from a Shariah Advisor registered with the Commission for collection and utilization of such Islamic donations, which shall be duly annexed with the audited financial statements of the company.

The company shall not exploit or offend the religious susceptibilities of the people and ensure that Islamic donations, including but not limited to zakat, sadaqah, or in any other form, shall not be received, invested, or utilized by it in any way that is contrary to the Shariah principles.

The company shall clearly disclose its policy for receipt, investment, and utilization of Islamic donations in the financial statements and shall also disclose the amount of such donations and avenues where utilized, SECP added.

Source: Pro Pakistani