ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued the draft bill of amendments to the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, to obtain the feedback of the public and stakeholders.

The proposed amendments intend to reflect the rapid and extensive changes in the business of modarabas. The SECP feels that in order to promote the Islamic financial services, there is a need to amend the ordinance.

The proposed amendments will strengthen the Shariah compliance by modarabas and ensure that the systems, procedures and policies adopted by the modaraba are in line with the Shariah principles. It will also mitigate the reputational and operational risks and enhance the image and operational framework for modarabas as a pure Islamic financial institutions.

Published in Dawn, June 24th, 2016