KARACHI: The Securities and Exchange Commission of Pakistan (SECP) on Monday said it had taken action against two modaraba companies for violating provisions of the law.
“The SECP has taken enforcement actions against two non-compliant modarabas. It is expected that these measures will help in better corporate governance and strengthening of risk management by the modaraba management companies,” said a press release.
An inquiry into the affairs of a modaraba was conducted that revealed that the management had violated provisions of the law. The major violations included non-disclosure of related party transactions in financial statements, non-transfer of investment in the name of modaraba, charging of expenses from the modaraba fund, etc.
The modaraba was directed to reimburse the expenses erroneously charged from the modaraba fund and strengthen the systems and controls.
Published in The Express Tribune, November 15th, 2016.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ