The central bank on Monday said to have adopted the AAOIFI Shariah Standard No 17 on ‘Investment Sukuk’ to strengthen Shariah compliance framework and harmonise the Shariah practices in Islamic banking industry. According to an SBP circular, the adoption of the new standard is in addition to current regulations and other instructions and the directives issued by the central bank from time to time. The new rules would not replace the existing ones by any means, the regulator said. “The failure to comply with these instructions may invoke penal action under the provisions of Banking Companies Ordinance 1962,” it warned.
