Draft amendments in the Modaraba Regulations, 2021

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, the 15th April, 2022 NOTIFICATION S.R.O. 529 (I)/2022.- The following draft amendments to the Modaraba Regulations, 2021 proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of the powers conferred by section 41A of Modaraba Companies and Modaraba (Floatation and control) Ordinance, 1980 (XXXI of 1980), is hereby published for information of all persons likely to be affected thereby and, notice is hereby given that objections or suggestions, if any, thereon received within fourteen days from date of publication in the official Gazette may be taken in to consideration by the Commission, namely:- DRAFT AMENDMENTS In the aforesaid Regulations, - (1) in regulation 2, in sub-regulation (1), in clause (ix), sub-clause (c) shall be omitted; (2) in regulation 3, in sub-regulation (1), for the colon at the end full stop shall be substituted and thereafter the proviso shall be omitted; (3) in regulation 9, in sub-regulation (1), for clause (xii), the following shall be substituted, namely: - “(xii) hold, deal or trade in speculative or risky real estate:
Provided that a modaraba may hold, deal or trade in real estate for development or construction purposes, where such a purpose or objective is provided in the approved prospectus of a modaraba;”; (4) in regulation 10, in clause (iii) for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be inserted, namely: - “Provided that the Commission may, on an application by the modaraba Company, relax the above conditions where a modaraba is engaged in venture capital financing, as set out in its approved prospectus.”; (5) in regulation 11, in sub-regulation (1), - (a) for the expression “20 million” the expression “50 million” shall be substituted; and (b) for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely: - “Provided that the total housing finance portfolio of the Modaraba shall not increase ten percent (10%) of the total portfolio of the Modaraba.”;