Regulatory Alerts2023-01-02
Added · Updated
Consolidated Circular for Modarabas-SRO 2310 dated 28.12.2022
The Securities and Exchange Commission of Pakistan consolidates regulations for modaraba companies, prohibiting changes to sponsors, promoters, substantial shareholders, directors, or chief executive officers without prior Registrar approval. Substantial shareholders must deposit shares and certificates in CDC accounts where they remain blocked and unencumbered, with transfers restricted without written permission. Modarabas are authorized to raise funds via public offers, Sukuk, or agreements with Islamic banks, subject to Shariah compliance and Registrar approval, while other public fundraising methods are disallowed. The circular mandates specific conditions for real estate investments, requires key professionals to hold PMRP and FCM certifications, and enforces strict Anti-Money Laundering protocols including KYC, CDD, and monthly CIB data submission to the State Bank of Pakistan.