ISLAMABAD: The religious board constituted by the federal government for the SECP under Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, has approved the prospectuses of two new modarabas, which are Habib Metro Modaraba and Orient Rental Modaraba. The board certified that the business specified in the prospectuses of both the modarabas is not opposed to the injunctions of Islam. The meeting was presided over by Board Chairman Justice (R) Khalilur Rehman Khan. Habib Metropolitan Modaraba Management Company (Pvt) Limited has proposed to float a new modaraba with the paid-up modaraba funds of Rs 300 million. It shall be a perpetual, multipurpose and financial services modaraba. It will primarily provide car-financing solutions to various individuals and corporate customers based on RV car financing model. In the RV car financing, the monthly rentals are significantly lower than the regular Ijarah financing mode. In addition to RV car financing, it will provide solar power solutions to its customers based on rental or any other approved modes of financing. Orient Rental Modaraba will be floated by EMAN Management (Pvt) Limited, with the authorised and paid-up modaraba funds of Rs 500 million. It shall also be a perpetual and multipurpose modaraba, primarily focusing on rental business of generators, heavy machinery etc. These modarabas shall not engage in riba-based transactions. They shall conduct their businesses in accordance with the modaraba regulatory framework, Sharia Audit and Sharia compliance mechanism, object clause of their prospectuses, principles of Sharia and on the basis of model financing agreements already approved by the Board. They shall also appoint Sharia advisors to have their guidance and Sharia certification of their day-to-day business transactions. The modaraba certificates of both financial institutions shall be listed on the Pakistan Stock Exchange (PSX). Consequently, a new investment of Rs 800 million shall be coming to the capital market. It is expected that these modarabas will promote the sector and attract the public to invest in Islamic financial institutions. The SECP reiterates that it is firmly committed to promoting Islamic finance in the country.