Monday September 26, 2022

Modaraba regulations amended

By Our Correspondent
August 20, 2022

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday approved some amendments to the Modaraba Regulations, 2021, aiming to improve doing business climate in the country.

The amendments have created transitional provisions for Modarabas to comply with the minimum equity requirement such as increased per party house finance limit, SECP said.

The regulator allowed Modarabas to engage in real-estate business, simplified requirements for reserve funds following the withdrawal of tax incentives, aligned the time period for filling casual vacancies with the Companies Act, 2017, and created an enabling provision to impose penalties for violations of provisions of the Modaraba Regulations, 2021.

The amendments, approved after the required public consultation, were notified through publication in the official gazette vide SRO No. S.R.O. 1547 (I)/2022, which is available at SECP website.

In addition, SECP also notified a circular for real estate investments, setting conditions for Modarbas to invest in real estate projects.