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.

Pakistan to start new options in securities

The federal government intends to start three new options ie call, switch and swap in its securities.

Sources of banking industry said that by starting these three new options in both federal as well as provincial securities, institutional investors, both local and foreign, will be lured to make investment.

India by changing its Security Act of forties, 4 years ago had created depth and widened investment scope in its union securities.

The initiative of Indian government also led to investment in union securities by overseas Indians.