The Securities and Exchange Commission of Pakistan (SECP) notified the draft of the amendments to Modaraba Companies and Modaraba Rules, 1981 to obtain opinion of the stakeholders and general public.
The proposed amendments are aimed at updating the legal framework for registration and floatation of modarabas in the country.
The amendments seek to provide a comprehensive framework for operation and conduct of modaraba companies and would enhance supervision by the SECP.
The major amendments include provisions for empowerment of the certificate holders, who like shareholders of companies, convene annual and extraordinary general meetings.
The certificate holders of Modarabas have been empowered to take part in major decision making of modaraba's business including approving the accounts and auditors. Moreover, Modarabas have been categorised in to deposit raising and non-deposit raising modarabas.
Various enabling powers for the Registrar Modaraba have been introduced to grant extension for submission of accounts by modarabas, to accept documents/returns with additional fee and to allow modarabas to raise funds through issuance of certificates of investments and sukuk etc.
Modarabas, as Islamic financial institutions, are playing their role in promoting Shariah-compliant financial products. The amendments have been made to provide more conducive business environment for the promotion of modarabas.
The draft amendments to rules have been placed on the SECP's website www.secp.gov.pk. Feedback may be sent to the SECP by March 26.-PR