SECP issues draft amendment for Modarabas
The Securities and Exchange Commission of Pakistan notified the draft of the amendments to modaraba Companies and modaraba Rules, 1981 to obtain opinion of the stakeholders and general public.
The proposed amendments are aimed at updating the legal framework for registration and floatation of modarabas in the country, said a statement issued here on Wednesday. The amendments seek to provide a comprehensive framework for operation and conduct of modaraba companies and would enhance supervision by the SECP.
The major amendments include provisions for empowerment of the certificate holders, who like shareholders of companies, convene annual and extraordinary general meetings. The certificate holders of modarabas have been empowered to take part in major decision making of modaraba's business including approving the accounts and auditors.