SECP Issues Consolidated Circular for Modaraba Sector

In a bid to improve efficiency and compliance in the Modaraba sector, the Securities and Exchange Commission of Pakistan (SECP) has consolidated all statutory and regulatory requirements in one Circular. The step is taken as part of SECP’s efforts for creating an enabling environment for the Islamic finance sector in the country. The consolidated circular SRO 2310 contains all prior circulars, notifications, clarifications, and directives that have been issued by SECP since 1999 for the Modaraba sector while all the duplications, repealed, and redundant statutory requirements have been deleted. All the up-to-date statutory and regulatory requirements have been compiled in a systematic order. A comprehensive exercise has been done to review all previously issued circulars, clarifications, and notifications. The objective is to provide a comprehensive and prudent regulatory environment for the Modaraba sector while ensuring ease and efficiency in compliance. A list of all repealed circulars and notifications issued since 1999 has also been provided at the end of the consolidated circular. The said circular is available on SECP’s website.