Securities and Exchange Commission of Pakistan proposes Companies Act amendment to license and regulate Waqf management companies

The Securities and Exchange Commission of Pakistan (SECP) announced it will propose an amendment to the Companies Act, 2017 to introduce Waqf management companies and bring them under a dedicated licensing and regulatory framework. The proposal would allow SECP-licensed, not-for-profit companies to manage and administer Waqf assets in line with Shariah principles and the stated objectives of each Waqf. The amendment would add a new Section 42A empowering SECP to license these entities and apply regulatory conditions, including that declared Waqf objectives are immutable, the Waqf corpus must be preserved with restrictions on sale, pledge, or encumbrance unless explicitly permitted by the Waqf’s objectives, and compliance with Shariah principles and standards prescribed by SECP. The framework also envisages governance, reporting, and fiduciary controls, ongoing Shariah compliance monitoring, and the appointment of qualified Shariah advisors, with penalties and regulatory sanctions available for non-compliance. SECP also linked the initiative to enabling modern Waqf structures such as cash Waqf and investment Waqf, and to the potential development of Waqf-linked Sukuk and dedicated Waqf mutual funds within regulated markets.