The Securities and Exchange Commission Pakistan (SECP) has tightened regulations for the appointment of directors and chief executives of the Modaraba companies.
In this connection, the SECP has laid down some additional conditions for the appointment of directors and chief executives of the Modaraba companies.
Under the amended procedure, the chief executive officer’s suitability shall be assessed through an interview by Registrar Modaraba. In the case of Sponsors and Sponsor’s Directors, certain requirements of the SECP would not be applicable.
Through circular number 34 issued by the SECP on Monday, the SECP has revised prudential regulations for the Modaraba companies.
The SECP has highlighted the procedure for prior approval for the appointment of directors and chief executives of the Modaraba companies. Modarabas shall, for obtaining prior approval of the Registrar Modaraba for making any change in the directors/chief executive, follow the laid down procedure.
Modarabas shall, for obtaining prior approval of the Registrar Modaraba for making any change in the directors/chief executive, follow the following procedure:
The application for approval of the appointment or any change in the directors/Chief Executive shall be submitted by the modaraba company to Registrar Modaraba not later than 14 days before the election/appointment or any change in the Directors/Chief Executive.
The above-referred application shall not be treated complete unless the information/documents as required under Forms and affidavit attached as Annexure-II and III respectively are furnished.
The information or deficiency or shortcoming as pointed out by Registrar Modaraba shall be supplied by the modaraba company, within 14 (fourteen) days of the issue of the letter by the office of Registrar Modaraba, otherwise, the matter shall be treated as having been closed, SECP added.
