SECP for re-evaluating modaraba model

Salman A. Shaikh, Commissioner, Securities and Exchange Commission of Pakistan, said on Monday, “the basic modaraba model should be re-evaluated and newer model with enhanced shareholders’ rights, eviction of bad management, a clear separation of ownership and control should be considered.”

Addressing top management of modarabas at the launch of 9th-year book of Modaraba Association of Pakistan at a local hotel, he said changes should be expected for bringing the modaraba sector further in line with Sharia rulings and the international best practices to ensure investor protection and to offer quality investment opportunities.

Modarabas seek expansion under new NBFC rules

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.”

Modarabas, Islamic banks coordinated working sought

Newly elected chairman of Modaraba Association of Pakistan, Bashir A Chowdry said on Thursday that State Bank of Pakistan has constituted a joint task force to “promote coordinated functioning of Modarabas and Islamic Banks for which MAP will try to contribute effectively.”

Addressing the Annual General Meeting of Modaraba Association of Pakistan (MAP) the newly elected chairman said modaraba sector has potential and capabilities but needs diversification within admissible modes of business.

He urged for further research and multiple products instead of relying on a single product or service.