SECP Launches Awareness Drive for Modaraba

The Securities and Exchange Commission of Pakistan has launched an awareness campaign about the business model of modaraba and modaraba management companies, regulated by it, its salient features, recent initiatives and the performance of the modaraba sector to attract prospective investors to float new modarabas to take advantage of the diversity of Shariah-compliant framework, revealed an official press release. In order to achieve these objectives, the commission, in collaboration with the Islamabad Chamber of Commerce and Industry (ICCI), held a comprehensive session, it added. The speakers gave a detailed presentation on the SECP’s functions and responsibilities and modaraba institutions regulated by it. As per the bulletin, the ICCI secretary general highlighted the keenness and interest of the ICCI members in understanding business model of modaraba regulated by the SECP. They discussed the diversity and potential of modaraba concept in exploring the current and forthcoming business opportunities in the context of overall economic development of the country and the role the sector can play with particular reference to the China Pakistan Economic Corridor, the press release said. In addition to the SECP officials, chairman and representatives of the non-banking financial institutions (NBFIs) and Modaraba Association of Pakistan and members of the ICCI attended the session. The potential of modarabas for providing financing facilities to small and medium enterprises and dividend distributions to the certificate holders also came under discussion.