Modarabas to Appoint Independent Directors from SECP-Approved Institutions

The Securities and Exchange Commission of Pakistan (SECP) has directed Modaraba companies that independent directors shall be selected from the data bank of the institutions/bodies notified by the Commission. Through an SRO issued by the SECP on Wednesday, the commission has proposed draft amendments to the Modaraba Regulations, 2021. Under the revised regulations, a Modaraba company shall ensure compliance while appointing independent directors to its board. An independent director shall be selected from the data bank of the institutions/bodies notified by the Commission following section 166 of the Companies Act, 2017. The regulations further revealed that all advertisements for any invitation for investment in COM, either through advertisement by print, electronic, or social media outlets or any other form or channel to the public or through private placement shall at the minimum contain the following information: