The Modaraba Regulations, 2021-updated – August 15, 2022

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Islamabad, the 15 th August, 2022 NOTIFICATION S.R.O. 284(I)/2021. __ In exercise of the powers conferred by section 41A of the Modaraba Companies and Modaraba (Floatation and control) Ordinance, 1980 (XXXI of 1980), the Securities and Exchange Commission of Pakistan is pleased to make the following amendments to the Modaraba Regulations 2021, the same having previously published vide notification S.R.O. 529 (I)/2022 dated April, 15, 2022:
CHAPTER I
PRELIMINARY

1. Short title, extent and commencement. __
   (1) These regulations may be called the Modaraba Regulations, 2021. (2) They shall come into force at once.
2. Definitions. __
   (1) In these regulations, unless there is anything repugnant in the subject or context: - (i) “Annexure” means annexure appended to these regulations; (ii) “Certificate of Musharakah (COM)” means an instrument to raise funds through the modes and instruments approved by the Religious Board but does not include, - (a) redeemable capital issued under section 66 of the Companies Act, (XIX of 2017); (b) funds obtained from a financial institution; (c) advance or application or subscription money for certificates of the modaraba; (d) cash margin or security deposit received in respect of funds provided by the modaraba; (e) subordinated funds; and (f) funds obtained from major shareholders, sponsors and associated companies. (iii) “Certificates of Musharakah (COM) raising Modaraba” means a financial services modaraba with a valid permission to raise funds through issuance of COM or any other modes or instruments approved by the Religious Board or have outstanding COM on its books; (iv) “Contingent liability” means:
   (a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or