ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has released a comprehensive guide to facilitate Modaraba Companies and Modarabas in complying with requirements of the Modaraba Ordinance 1980, Modaraba Rules 1981, Modaraba Regulations 2021, and related directions and circulars.
The guide consolidates all reporting obligations and summarizes required approvals under the Modaraba Law in order to assist the industry in achieving effective compliance. Furthermore, it emphasizes critical provisions of Modaraba Law and refers to common violations, urging stakeholders to be aware of potential pitfalls.
However, the guide does not cover the legal and regulatory obligations of Modaraba Companies and Modarabas, including provisions of the Companies Act 2017 and the Securities Act 2015, subsidiary legislation, and obligations under PSX listing regulations.
The Commission is committed to advancing Islamic finance principles and revitalizing the Modaraba sector. Over the past three years, significant initiatives have been implemented which include revamping the Modaraba Regulations, amending the Modaraba Rules and issuing consolidated circulars, expanding Islamic financial products and services, and ensuring ethical standards in order to increase stakeholder understanding of Modaraba Law.
Copyright Business Recorder, 2024
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