Modaraba companies: SECP revises conditions for appointment of directors, Ces
ISLAMABAD: The Securities and Exchange Commission Pakistan (SECP) has revised conditions for appointment of directors and chief executives of Modaraba companies. The SECP has amended circular number 4 of 2004 through a circular issued Monday. According to the SECP's circular, the commission has revised prudential regulations for the Modaraba companies.
The SECP has already directed all the Modaraba companies to conduct all business transactions undertaken by Modarabas in conformity with the revised prudential regulations. The SECP has explained the procedure for prior approval for 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. Under the revised procedure, the chief executive officer's suitability shall be assessed through interview by the Registrar Modaraba.
In case of Sponsors and Sponsor's Directors, certain requirements of the SECP would not be applicable. 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 days of the issue of the letter by the office of registrar Modaraba, otherwise, the matter shall be treated as having been closed, the SECP added.
Copyright Business Recorder, 2020
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