The Securities and Exchange Commission of Sri Lanka (SEC) has taken a significant step by approving a list of Accredited Shariah Scholars as “Supplementary Service Providers.” These scholars are authorized to certify the Shariah compliance of Islamic Capital Market Products for listing on the Colombo Stock Exchange (CSE) under the Listing Rules. This move aims to meet the needs of Islamic investors and ensure the credibility of Shariah-compliant products in the market.
In response to the increasing demand for Shariah Compliant Debt Securities like Sukuk, both locally and globally, the SEC has proactively introduced an enabling regulatory framework on the CSE. The approval of Accredited Shariah Scholars and the compliance certification process by the SEC adds credibility to the products listed on the Exchange, addressing the growing interest in Shariah-compatible financial instruments.
The SEC’s rigorous selection process has resulted in the approval of six Accredited Shariah Scholars, including experts from the United Arab Emirates, South Africa, Sri Lanka, Malaysia, and Saudi Arabia. These scholars are designated as Supplementary Service Providers, responsible for certifying the Shariah compliance of capital market products seeking listing on the CSE.
Guidelines published by the SEC outline the responsibilities of Shariah Scholars, qualifications, reporting procedures, governance standards, and conflict of interest management. This initiative aims to establish robust Shariah compliance governance processes, enhance market credibility, and provide assurance to both local and international investors. The SEC plans to regularly review and update the list of Accredited Shariah Scholars to maintain standards and meet evolving market needs.