SECP, modarabas discuss Shariah compliance
To introduce system to maintain confidence in Islamic financial system .
ISLAMABAD:
The Securities and Exchange Commission of Pakistan (SECP) and modaraba companies have supported the idea of introducing a system that ensures Shariah compliance on a continuous basis and will help maintain the confidence of stakeholders in the Islamic financial system.
The issue came up for discussion in a meeting between an SECP team led by Registrar Modarabas Jawed Hussain and Non-Banking Financial Institutions Chairman Bashir Chowdhry, representatives of the Modaraba Association of Pakistan and chief executives of modaraba companies.
Chowdhry discussed various issues faced by modaraba companies, like non-inclusion of modarabas among Zakat-deducting agencies and Sahib-e-Nisab in the 1980 Zakat and Ushr Ordinance and in the 2001 Balloters, Transfer Agents and Underwriting Rules as underwriters like other financial institutions.
Besides other issues, Hussain presented a new concept of Shariah audit mechanism for the modarabas. He emphasised the significance of a comprehensive Shariah audit system and its importance for the sector.
Under the existing regulatory framework and practice, a statutory audit is conducted, which evaluates and ensures true and fair view of the financials as well as regulatory compliance by the modarabas.
Published in The Express Tribune, September 28th, 2011.
The Securities and Exchange Commission of Pakistan (SECP) and modaraba companies have supported the idea of introducing a system that ensures Shariah compliance on a continuous basis and will help maintain the confidence of stakeholders in the Islamic financial system.
The issue came up for discussion in a meeting between an SECP team led by Registrar Modarabas Jawed Hussain and Non-Banking Financial Institutions Chairman Bashir Chowdhry, representatives of the Modaraba Association of Pakistan and chief executives of modaraba companies.
Chowdhry discussed various issues faced by modaraba companies, like non-inclusion of modarabas among Zakat-deducting agencies and Sahib-e-Nisab in the 1980 Zakat and Ushr Ordinance and in the 2001 Balloters, Transfer Agents and Underwriting Rules as underwriters like other financial institutions.
Besides other issues, Hussain presented a new concept of Shariah audit mechanism for the modarabas. He emphasised the significance of a comprehensive Shariah audit system and its importance for the sector.
Under the existing regulatory framework and practice, a statutory audit is conducted, which evaluates and ensures true and fair view of the financials as well as regulatory compliance by the modarabas.
Published in The Express Tribune, September 28th, 2011.