Graana News

SECP allows Modaraba companies to deal in real estate

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has authorised Modaraba companies to deal in real estate projects that are approved by development authorities.  

invest with imarat

Islamabad’s emerging city centre

Learn More

According to SRO 1546 (I)/2022 issued by the SECP on Wednesday, a Modaraba company can deal, hold or trade in real estate projects, subject to pre-established terms and conditions.

In the case of a multipurpose Modaraba, where real estate investment makes up one-third of its total assets, it shall adhere to the following conditions:

(i) The investments shall only be made in assets recognised by development authorities i.e. Capital Development Authority and/or any other in any city of Pakistan, and should be supported by NOCs relating to the real estate project from the relevant authority.

(ii) The purpose of investment can be to develop properties for rental, development or mixed projects.

In case of a specific-purpose Modaraba, for real estate investment or where investment in real estate makes up one-third or more of its portfolio, it also has to comply with a few additional conditions:

(i) At least two directors of the company shall have a minimum of five years’ experience in dealing with real estate projects.

(ii) A valuation report from an independent valuer shall be obtained.

(iii) The prospectus of the company shall contain information relating to management experience of the sponsors, the type of real estate project, potential locations of the project, investment objectives, valuation report, feasibility study, legal status of the property, funds required, sponsors’ contribution, and the compliance with the lock in period requirement for the sponsors.

Minaal Shamimi

As an editor and writer, Minaal recognises the importance of a well-crafted and compelling narrative. With several years of experience and a thorough understanding of SEO practices, her focus is on producing content that can provide different perspectives and create real value.

Recent Posts

A Guide to Quetta Town in Karachi

Quetta Town is a residential neighbourhood located in the vibrant city of Karachi, Pakistan. Known…

13 hours ago

Akbar Chowk Lahore: A Focal Point of Connectivity

Akbar Chowk in Lahore stands as one of the city’s most critical intersections, serving as…

1 day ago

A Guide to Khuda Baksh Colony Lahore

Khuda Baksh Colony, located near Bhatta Chowk in Lahore, is a rapidly developing residential area…

2 days ago

Gol Market Karachi: A Vibrant Commercial Hub

Gol Market in Karachi is one of the city's most iconic and bustling commercial centres.…

2 weeks ago

Model Town Gujranwala: A Well Planned Residential Area

Model Town, located in the heart of Gujranwala, is one of the city’s most prestigious…

2 weeks ago

Senate Greenlights Special Courts for Swift Resolution of Overseas Pakistanis’ Property Cases

ISLAMABAD, Pakistan— In a major move to address the longstanding grievances of overseas Pakistanis, the…

2 weeks ago