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Non-Banking Financial Institution, Modaraba Association of Pakistan for comprehensive Shariah Compliance system.

ISLAMABAD, September 28, 2011 (Balochistan Times): The non-bank financial institutions (NBFI) and Modaraba Association of Pakistan (MAP) Tuesday stressed the need for comprehensive system of Shariah compliance to keep intact the confidence of the stakeholders in he Islamic financial system. According to SECP statement released here Tuesday, Chairman NBFIs and Modaraba Association of Pakistan, Chowdry Bashir during a meeting SECP delegation in Karachi, highlighted the significance of a comprehensive Shariah Audit system for the Modarabas and its importance for the sector. The SECP Registrar Modarabas, Jawad Hussain and his team met with NBFIs and MAP Chairman and all the chief executives of the Modarabas in Karachi to exchange views on various issues. On the occasion, Chowdry shared the views of the MAP on issues faced by the sector, including non-inclusion of the Modarabas in the list of zakat-deducting agencies and sahib-e-nisab in the 1980 Zakat and Usher 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 introduction of Shariah Audit mechanism for the Modarabas. He emphasized the significance of a comprehensive Shariah Audit system for the Modarabas and its importance for the sector. Under the existing regulatory framework and practice a statutory audit is conducted, which evaluates and ensures the true and fair view of the financial as well as regulatory compliance of the Modarabas. Therefore, all the participants favoured the idea of introduction of such system to ensure Shariah compliance on continuous basis and to keep the confidence of the stakeholders in the Islamic financial system. The SECP officers assured their continuous support for the growth and development of the Modaraba sector.

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Publication:Balochistan Times (Baluchistan Province, Pakistan)
Geographic Code:9PAKI
Date:Sep 28, 2011
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