The Securities & Exchange Commission of Pakistan (SECP) has issued formal authorization to the following Modaraba Management Companies to float Modarabas:
i. Habib Metropolitan Modaraba Management Company (Private) Limited (HMMMCPL), a wholly owned subsidiary company of Habib Metropolitan bank Limited (HMBL), to float another modaraba of Rs.300 million under the name of Habib Metro Modaraba. Habib Metro is currently managing First Habib Modaraba which is listed on the Stock Exchange. The new Modaraba will be a financial Modaraba, focusing on providing car financing solutions to individuals and corporate customers based on residual value car financing model. It will also provide solar power solutions to its customers based on Ijarah besides providing financing for generators, construction equipment, commercial and agricultural equipments etc.
ii. The Securities and Exchange Commission of Pakistan (SECP) has issued authorisation to Eman Management Private Ltd. (EMPL) to float Orient Rental Modaraba, having capital of Rs.500 million. The new modaraba will engage in providing rental equipment solutions, operations and maintenance services to its customers on Ijarah basis. The equipment selected for rental will include a fleet of power generation equipment, commercial vehicles, material handling equipment and construction machinery.
These authorisation by the SECP in the current month to float two modarabas shows the growing interest of prospective investors in Islamic finance especially in the modaraba sector.