Modarabas seek expansion under new NBFC rules

Posted on 10.11.06 by StockPK Team @ 11:11 am    

Modaraba companies want to expand their businesses by following recently promulgated non-banking finance companies (NBFCs) rules by the Securities and Exchange Commission of Pakistan.

Sources of Modaraba Association of Pakistan (MAP) said on Tuesday that the first meeting of newly elected Executive Committee of the association has decided to approach the SECP for extending the scope of NBFC rules to modarabas so that they could expand their business activities.

Sources said the newly elected chairman of the Association, Basheer A Chowdry reportedly argued that “some items (rules) of the recently revised NBFC rules notified by the SECP can also be extended to the modaraba companies to get the same benefits for the multipurpose modarabas for enhancing their activities.”

He said as a chairman he has set four priorities for his tenure.

To propose a revision of Prudential Regulations for Modarabas, Modaraba Ordinance, promulgated in mid eighties and modaraba rules with the help of SECP religious board and registrar modaraba, the two regulators of modarabas, so that the business handling capacity of modarabas could be broaden.

Help will be extended to member modarabas to improve their operational capabilities in the development of new products, services and systems besides human resource training.

Close links will be established with Islamic banks the image and market perception of the modarabas will be improved.

He expressed his resolve of making the year 2006-2007 a unique year in development and success of the modaraba sector by working closely with registrar modaraba and members of the association.

He said the Pakistani financial sector is facing unprecedented changes. The concept of universal banking has been adopted and financial super markets are evolving through mergers and acquisitions.

Foreign banks are acquiring local banks to have bigger platform to enable them to actively participate in the financial and commercial activities of the country.

The chairman of the association in consultation with members, constituted the following committees.

Mohammad Shoaib will be the chairman of new product and service development committee while Muhammad Sajid and Asad A Shaikh will be members.

Javed Parwaz will be the chairman of public awareness committee with Saeeduddin Khan and Muhammad Samiullah as members.

Saeeduddin Khan will be the chairman of the systems and training committee while Asad A Shaikh will be the member.

Source: The News