Consolidated Circular for Modarabas-amended upto 14.11.2024

Modaraba companies are prohibited from changing sponsors, promoters, substantial shareholders, directors, or chief executive officers without prior Registrar Modaraba approval, with shares and certificates required to be blocked in the Central Depository Company of Pakistan Limited. The notification mandates the appointment of acting chief executives upon resignation or removal, restricts fund-raising to specific Shariah-compliant instruments like Sukuk, and imposes strict conditions on real estate investments based on asset thresholds. Additionally, key professionals must obtain PMRP and FCM certifications, model financing agreements must be adopted, CIB data submitted monthly to the State Bank of Pakistan, and comprehensive Anti-Money Laundering and KYC procedures enforced for all customer accounts.

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PART II
Statutory Notification (S. R. O.)
GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN NOTIFICATION Islamabad, the 28th December 2022 S.R.O. 2310(I)/2022 - In exercise of the powers conferred under section 41B of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (the “Ordinance’’), the Securities and Exchange Commission of Pakistan is hereby please to issue the following notification in order to consolidate and update various circulars, dircetives and notifications already isseud by the Commission from time to time under the said Ordinance, to facilitate and create an enabling environment for the Modaraba sector and to ensure compliance of statutory and regulatory requirements pertaining to the Modaraba sector, namely:-
Chapter 1:

Prohibition of change of sponsors, promoters, substantial shareholders, directors
or the chief executive officers in the Modaraba Companies
1.1. Pursuant to sections 6 and 11 of the Ordinance and conditions imposed while
granting approval for registration of modaraba companies and authorising the floatation of modarabas by the Registrar Modaraba, no change shall be made in substantial shareholders, directors or chief executive officer of the modaraba company without prior approval of the Registrar Modaraba.

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Lineage: In force

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Show all related documents (41)

Supersedes: Appointment of directors and chief executive in Modaraba companies2000 Additional Conditions No. 1/2000 to Modaraba Authorization Certificate2000Circular dated 1999-05-06not in RegAlertCircular dated 2000-08-10not in RegAlertCircular dated 2001-06-14not in RegAlertCircular dated 2002-06-06not in RegAlert
+33 more
Circular dated 2003-07-18not in RegAlertCircular dated 2004-02-13not in RegAlertCircular dated 2005-09-22not in RegAlertCircular dated 2006-06-16not in RegAlertCircular dated 2008-06-02not in RegAlertCircular dated 2009-03-06not in RegAlertCircular dated 2010-07-16not in RegAlertCircular dated 2011-11-30not in RegAlertCircular dated 2012-05-31not in RegAlertCircular dated 2015-04-17not in RegAlertCircular dated 2016-04-25not in RegAlertCircular dated 2018-09-24not in RegAlertCircular dated 2020-04-24not in RegAlertCircular dated 2021-07-19not in RegAlertCircular No. 2 dated 2010-01-15not in RegAlertCircular No. 2 dated 2014-01-22not in RegAlertCircular No. 4 dated 2004-01-28not in RegAlertCircular No. 4 dated 2005-05-23not in RegAlertCircular No. 4 dated 2006-03-22not in RegAlertCircular No. 4 dated 2008-04-07not in RegAlertCircular No. 4 dated 2016-01-22not in RegAlertCircular No. 5 dated 2003-02-21not in RegAlertCircular No. 5 dated 2004-01-29not in RegAlertCircular No. 6 dated 2008-05-08not in RegAlertCircular No. 7 dated 2003-02-27not in RegAlertCircular No. 7 dated 2010-03-31not in RegAlertCircular No. 8 dated 2012-02-03not in RegAlertCircular No. 9 dated 2008-05-16not in RegAlertCircular No. 9 dated 2009-03-25not in RegAlertCircular No. 9 dated 2018-07-03not in RegAlertDirective dated 2017-04-17not in RegAlertDirective dated 2019-03-19not in RegAlertNotification No. 1546(I)/2022 dated 2022-08-15not in RegAlert
Issued under: Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980not in RegAlert
Refers to: The Companies Act, 2017 (Act No. XIX of 2017)2017

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This document supersedes: Appointment of directors and chief executive in Modaraba companies, Additional Conditions No. 1/2000 to Modaraba Authorization Certificate

Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works