What is Modaraba?

Modaraba is a form of contract a subscriber (Rabb-ul-maal) participates with his money and the manager (Mudarib) with his efforts and skills, after setting aside the agreed share of Mudarib the profits earned on investments are distributed among the subscribers.

Where does the Modaraba Invest?

Modaraba can only invest in Halal businesses through various Islamic modes of financing approved by Sharia Board of Security and Exchange Commission of Pakistan.

What are the products being offered by Modaraba?

KASB Modaraba is offering the following products:

- Ijarah (operating lease)
- Murabaha (Asset, Inventory purchase on deferred payment basis)
- Musharaka (Specific Business Finance)
- Modaraba (Financing businesses)
- Diminishing Musharaka (Asset purchase financing on hire-purchase basis)

Who is the governing body for Modaraba?

- Securities & Exchange Commission of Pakistan (SECP) is the governing body for Modarabas in Pakistan
  and following laws / regulations are applicable:

- The Modaraba Companies & Modaraba (Floatation & Control) Ordinance, 1980
- The Modaraba Companies & Modaraba Rules, 1981
- The Companies Ordinance, 1984
- The Religious Board
- Prudential Regulations for Modaraba


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