ISLAMABAD: The Securities and Exchange Commission of Pakistan’s Religious Board on Thursday approved prospectuses of two new modarabas – Habib Metro Modaraba and Orient Rental Modaraba.

The religious board was constituted by the federal government for SECP under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980.

The board, with its chairman Justice (retired) Khalil-ur-Reh­man Khan, certified that the business specified in the prospectuses of both modarabas is not opposed to the injunctions of Islam. Habib Metropolitan Modar­aba Management Company (Pvt) Limited has proposed to float a new modaraba with paid-up modaraba funds of Rs300 million. It shall be a perpetual, multipurpose and financial services modaraba.

It will primarily provide car-financing solutions to individuals and corporate customers based on recreational vehicle (RV) car financing model. In the RV car financing, monthly rentals are significantly lower than the regular Ijarah financing mode. In addition to RV car financing, it will provide solar power solutions to its customers based on Ijarah/rental/Musharakah or any other approved modes of financing.

Orient Rental Modaraba will be floated by Eman Management (Pvt) Limited, with authorised and paid-up modaraba funds of Rs500m. It shall also be a perpetual and multipurpose modaraba, primarily focusing on rental business of generators, heavy machinery, etc.

These modarabas will not engage in riba-based transactions and shall conduct their businesses in accordance with the modaraba regulatory framework, Sharia Audit and Sharia compliance mechanism, object clause of their prospectuses, principles of Sharia and on the basis of model financing agreements already approved by the board.

Published in Dawn, February 24th, 2017