Modaraba Regulations, 2021: SECP to impose penalty on each Modaraba company in case of violation

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to impose a penalty of Rs 100,000 on each Modarba company, which will violate any of the provisions of Modaraba Regulations, 2021.

The SECP has issued draft amendments to the Modaraba Regulations, 2021 through a notification issued here on Saturday.

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According to the new regulations, if any person refuses or fails to furnish/file any document, return or information which he is required to furnish by or under these regulations; or refuses or fails to comply with any condition(s) imposed under these regulations; or contravenes or otherwise fails to comply with any provision of these regulations, the SECP Registrar, may, after giving the person an opportunity of being heard, impose such penalty which may extend to Rs 100,000and, where the contravention is a continuing one, with a further penalty which may extend to Rs 1000 for every day after the first during which such contravention continues.

Any person aggrieved by an order passed may, within thirty days of such order, prefer an appeal to the Commission, SECP added.

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