BankIslami has developed a new product, Scrips Equity Trading, which facilitates Customers wanting to invest in the stock market in a Shariah compliant way. The service enables custodial services as well as settlement of trades in Shariah Compliant shares/securities through a designated brokerage house of Pakistan Stock Exchange namely BIPL Securities Limited.
The following are the features of this facility:
- Online equity trading facility in Shariah Compliant securities as approved by the Shariah Board of Bankislami.
- One window operation for facilitating investment in shares, settlement of trades and custodial services.
- User friendly, fully automated and integrated system.
- Safe and secure custodial services.
- Real time SMS and email alerts for all transactions.
- Multi trading platform (Application & Web based trading).
- Access to high quality technical and fundamental stock research of BIPL Securities.
- Trader assisted trade facility available as well.
- Discounted offers for availing Auto and Muskun financing.
- Scrips Equity Trading facilitates Customers wanting to invest in the stock market in a Shariah compliant way. The service enables custodial services as well as settlement of trades in Shariah Compliant shares/securities through a designated brokerage house of Pakistan Stock Exchange namely BIPL Securities Limited.
- Any Customer maintaining an account at any of BankIslami’s branches can open a Scrips Account. Customers not having a BankIslami account can avail the facility by simple opening an account at any BankIslami branch.
- There are two types of AOFs required to be filled by the Customer. These are as follows:
1. BankIslami CDC Sub-Account: The Customer’s CDC Sub-Account with BankIslami is opened through this form. Thus, all traded Shares/Securities will be kept with BankIslami which would provide a safe and secure custodial service to the Customer.
2. BIPL Securities Trading AOF: With this form, the Customer’s Trading Account is opened with BIPL Securities. Following receipt of this AOF, BIPL Securities will send a login ID and password to the Customer on the registered email address to grant access to BIPL Securities online trading platform. The Customer can then use this platform to execute online purchase and sale transactions. In addition, the Customer will get regular research reports from BIPL Securities on their email.
- Scrips Equity Trading will only be dealing with shares that are Shariah Compliant. The list would be available at the BankIslami and BIPL Securities websites respectively.
- Shariah Compliant Securities are approved by the Shariah Board of Bankislami using Shariah Screening criteria. For a company's share to be qualified as Shariah Compliant, it shall fulfill all the following criteria:
a. The core business of the company should be Shariah Compliant;
b. The ratio of Non-Shariah Compliant Income to Gross Revenue should be less than 5%;
c. The ratio of Illiquid Assets to Total Assets should be equal to or greater than 20%;
d. The Liquidity per share should be less than Market Price per share, where [Net Liquid Assets = Total Assets – Illiquid Assets – Total Liabilities];
e. The ratio of Non-Shariah Compliant Investments to Total Assets shall be less than 33%; and
f. The ratio of Non-Shariah Compliant Debt to Total Assets should be less than 40%.
- Besides Non-Shariah Compliant Shares, the Customer will not be able to purchase shares of BankIslami Pakistan Limited and BIPL Securities Limited due to regulatory reasons.
- If a Customer transfers the shares of a company whose core business is Non-Shariah Compliant into the CDC Sub-Account managed by BankIslami, the Customer is required to sell or transfer out those shares within a period of 30 working days. In the event that the Customer fails to sell or transfer out these shares, he/she would have to pay a calculated amount to the Charity Fund of the Bank. The sum will be calculated at 1% per annum on the total purchase value of such Non-Shariah Compliant shares for the entire period for which the shares remained unsold. The Charity amount calculation would be done as follows:
This payment may be waived by the Bank if the reason for delay in sale is acceptable to the Bank.
- Customers can directly call on following numbers:
• For Scrips Equity Trading Account related matters - please dial the Call Center of BankIslami Pakistan Limited at 111-475-264. The Call Center is open 24/7. You can also email at firstname.lastname@example.org
• For BIPL Direct Stock Trading related matters – please dial the Call Center of BIPL Securities Limited Call Center at 0800-52722. The Call Center is open during market hours from Mondays to Thursdays between 9:30 AM and 3:30 PM and on Fridays between 9:30 AM and 4:30 PM. You can also email at email@example.com
BankIslami Scrips Portal scrips.bankislami.com.pk
BIPL Securities Web Trading Portal www.bipldirect.com