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 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 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 Islamic Capital Market Takaful 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 Depth of the Islamic Stock Exchange will be increased Clients of the banks will be saved to bear financial cost. Clients of the banks will be saved to bear financial cost. Islamic Banks will remain liquid. Islamic Banks will remain liquid. Decrease in Bad Debts and eliminates overvaluation of the project. Decrease in Bad Debts and eliminates overvaluation of the project. Industrial growth will be enhanced. 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