Regulatory Alerts2022-04-20
Added · Updated
Draft amendments in the Modaraba Regulations, 2021
The Securities and Exchange Commission of Pakistan proposes amending the Modaraba Regulations, 2021 to prohibit speculative real estate trading while allowing development activities if specified in the prospectus. The draft increases the minimum equity threshold from 20 million to 50 million rupees and caps the housing finance portfolio at 10% of total assets. It introduces a new penalty regime with fines up to 100,000 rupees for non-compliance and mandates that modarabas raising funds through COM enhance equity and meet quarterly targets within three years. Additionally, the regulations remove the mandatory 90% profit distribution requirement and clarify office space provisions.
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islamic-finance
credit
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