The critics of Islamic mode of finance claims that deposit rates of conventional and Islamic Banks (IBs) are not interest free and functionally are same in most instances and drew evidence by analyzing the pattern of investment of IBs. There is need to enhance financial literacy about Islamic banking products used for liquidity and portfolio management and their pricing mechanism in secondary market. Aim of the study is to explore the basic features of Islamic modes of finance and SLR eligible securities used for liquidity and portfolio management in interbank money market. This study revealed the methods to calculate accrued interest and final settlement amount for the Shariah mode of finance and sale or purchase of SLR eligible securities. The findings stem from earlier published research, circulars by SBP and Shariah compliance board guidelines to explain basic structure of the instruments and transactions used in managing liquidity and obligations by the SBP. The conceptual framework adapted in the study represent Shariah compliant mode of finance and SLR eligible securities. This study will facilitate the individuals, financial institutions, fund managers, and corporate sector to manage their funds under the Shariah instruments and modes of finance. Key Words: Statutory Liquidity Requirement, Cash Reserve Requirement, Shariah Compliant, Ijarah, Sukuk