DIYANAH ISLAMIC
FINANCIAL SERVICES
PVT LTD.
Corporate Member Islamabad Stock Exchange.
Islamic Capital Market. The Role Of a Shariah
Compliant Brokerage House
Pakistan Premier Islamic Brokerage Company
CONCEPT
 Islamic
Capital Market (ICM) means a
market where all the investments,
financing activities and products are
structured in accordance with shariah
principles.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
How ICM Functions?
 ICM
are supposed to do all the useful
functions of conventional capital market
and many more with justice and equitable
distribution with Islamic orientation and
growth objectives.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Working
 Today
the ICM seems parallel to the
conventional market and provide investors
with the alternative investment
opportunities according to the Islamic
philosophy.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Globally Available ICM Products &
Services

Sukuk Market

Islamic Equity & Income funds

Islamic Equity Market

Islamic Stock Broking

Islamic Structured Products

Shariah Compliant Derivatives
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Islamic Capital Market Scenario in
Pakistan

Pakistan is a late starter to systematically
promote Islamic capital market as
compare to other countries of the region,
and it grows significantly before the
financial crises started in 2008. Later on
we witnessed a decline trend in growth
and development in this sector.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
ICM Products & Services in
Pakistan
 Sukuk
market
 Islamic
Funds
 Shariah
Compliant Stocks & Islamic Index
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Reasons for Stagnant Growth
 Lack
of interest of the regulators
 Absence of an efficient & effective Shariah
Advisory Board for capital Market
 Unavailability of products range
 Lack of co-ordination regarding transfer of
information and knowledge to the
investors
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
The Role of Shariah
Compliant Brokerage
House in the Development
of ICM
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Islamic Equity Market

If we compare our Islamic capital market to the Global
markets, we have seen that many products and
services are not available for our investors.Shariah
compliant brokerage is one of them.

In Pakistan, only few Brokerage Houses have Islamic
window and offers limited services.

A large number of investors are unaware about
Shariah compliant Shares and KMI30 index.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Why We Need a complete Shariah
Comliant Brokerage House?

The communication gap which persist between the
investors and Islamic Institutions, can be bridged by
Shariah Compliant Brokerage Houses, to helps and
create the awareness of shariah compliant stocks to the
investors.

To create alternative investment avenue and products,
which is secure, return oriented, and Halal also.

To eliminate unethical way of trading and discourage
RIBA from capital market.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Step Towards Islamic Stock
Exchange

Formation of Shariah Compliant Brokerage houses, will be a first
step toward the formation of a Islamic Stock Exchange and “DIFS” is
the beginning which prove after one year that IBH are commercially
viable and that provide courage to rest of the brokerage houses
either to open a window or a separate Islamic Brokerage company.

Formation of Islamic Regulatory body to form Regulations & ensure
compliances.

Islamic Exchange will be a place where like minded investors will
generate Halal earnings, and the project financers can generate the
equity financing without any doubt and hassle.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
ICM as an integral part of Islamic
Financial System

Islamic capital market
to provide long term
fund raising and
investment by
enhance depth &
liquidity of Islamic
financial system.
FINANCIAL CYCLE
Islamic Banking
Takaful
Islamic Capital
Market
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Role of Islamic Banks in the
development of Islamic SE

Regulatory Authority should design, explore and
implement a strategy, where a Islamic minded
businessman feel comfortable to approach Islamic
Banks and easily avail his financial needs and on
maturity, loans can be converted into shares and will
finally listed in Islamic stock exchange. Whereby





Depth of the Islamic Stock Exchange will be increased
Clients of the banks will be saved to bear financial cost.
Islamic Banks will remain liquid.
Decrease in Bad Debts and eliminates overvaluation of the
project.
Industrial growth will be enhanced.
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS
Ending Note
 These
were few suggestions regarding
development of Islamic Capital Market, for
which the regulatory authorities will think
over that how to develop and implement
strategies to explore and cover Potential
segment of Islamic Capital Market.
THANK YOU very much to all the
participants
DIYANAH ISLAMIC FINANCIAL SERVICES - DIFS