The Securities and Exchange Commission of Pakistan (SECP) has taken a proactive step towards enhancing compliance within the Modaraba sector by releasing a comprehensive guide. Aimed at facilitating Modaraba Companies and Modarabas, the guide is designed to assist them in adhering to the requirements set forth in the Modaraba Ordinance 1980, Modaraba Rules 1981, Modaraba Regulations 2021, and related directives and circulars.
The newly released guide serves as a consolidated resource, bringing together all reporting obligations and summarizing the necessary approvals mandated by the Modaraba Law. By providing clarity on compliance procedures, the guide aims to support the industry in achieving effective adherence to regulatory frameworks. It also highlights critical provisions of the Modaraba Law while drawing attention to common violations, urging stakeholders to remain vigilant and avoid potential pitfalls.
It’s important to note, however, that the guide does not encompass the entirety of legal and regulatory obligations applicable to Modaraba Companies and Modarabas. This includes provisions outlined in the Companies Act 2017, the Securities Act 2015, subsidiary legislation, and obligations stipulated under PSX listing regulations.
SECP’s initiative underscores its commitment to promoting Islamic finance principles and revitalizing the Modaraba sector. Over the past three years, the Commission has undertaken significant initiatives aimed at strengthening the regulatory framework governing Modarabas. These initiatives include revamping the Modaraba Regulations, amending the Modaraba Rules, issuing consolidated circulars, expanding Islamic financial products and services, and upholding ethical standards to enhance stakeholder understanding of Modaraba Law.
The guide is now accessible on SECP’s official website, further enhancing accessibility and ensuring that stakeholders have the necessary resources to navigate the regulatory landscape effectively. As SECP continues its efforts to foster compliance and transparency within the Modaraba sector, stakeholders can expect continued support and guidance from the regulatory body.