By Muhammad Samiullah
ABSTRACT
Modaraba companies & modaraba (Floatation & Control) Ordinance, 1980 was promulgated in June, 1980, Moadaraba Rules in 1981 and Prudential Regulations for Modarabas were issued in 2004. First Modaraba floated in July, 1980. Shariah Compliance & Shariah Audit Mechanism (SCSAM) introduced in February, 2012 by SECP. Objectives of SCSAM is to strengthen the shariah compliance of Modarabas. NBFI & Modaraba Association of Pakistan plays a vital role in implementation of SCSAM The Modaraba Sector being the pioneer in providing Islamic financial services in Pakistan is an important segment of the financial sector. Shariah Advisors have been appointed to monitor day to day transactions and ensure shariah compliance.
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