What is modaraba company in Pakistan?

Modaraba company is a unique and prime mode of non-interest Islamic financial system. It is a form of financial contract in which one party, the investor (Rab-ul-mal) entrusts money to another party, the financial manager (Mudarib) for the purpose of carrying out a business (Modaraba).

How many types of Modaraba are there?

What are the different types of Mudarabah? There are two types of Mudarabah: restrictive and unrestrictive. Restrictive Mudarabah means that the investor has specified investment details in the Mudarabah contract and has restricted the working partner within the scope of such specifications.

What is the definition of Modaraba?

Modaraba or Mudarabah is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise.

What are the types of musharakah?

Types of Musharakah Shirkah al-mufawadah is an equal, unlimited, and unrestricted partnership in which all partners put in the same sum, share the same profit, and have the same rights. A permanent musharakah has no specific end date and continues until the partners decide to dissolve it.

What are the types of Murabaha?

Here are two types of murabaha contracts an Islamic bank may offer:

Murabaha to the purchase orderer: In this contract, the bank specifically purchases the assets for the client’s order.
Commodity murabaha: Interbank transactions are a source of funds for Islamic banks.

What is the meaning of Ijarah?

An ijarah refers to− (a) a lease contract that transfers the ownership of a usufruct of an asset to another person for a specified period in exchange for a specified consideration; or (b) a contract for hiring of services of a person for a specified period in exchange for a specified consideration.

What is multi purpose Modaraba?

It is an agreement, in which one party provides managerial skill and other party provides capital funds to carry on the business. Profit is shared according to the agreed ratio. It may be for “Multiple Purpose” or for special purpose.

What is meaning of Modaraba in Urdu?

modarabanoun. A form of financial contract in some Muslim countries in which the investor (rab-ul-mal) entrusts money to a financial manager (mudarib) and any profits and losses are shared between them in an agreed manner.

What is the purpose of Musharaka contract?

Musharakah means relationship established under a contract by the mutual consent of the parties for sharing of profits and losses,arising from a joint enterprise or venture.

What are the rules and regulations of Modaraba company?

The Modaraba Companies & Modaraba (Floatation & Control) Ordinance, 1980 provides for matters to registration of modaraba companies and floatation and management and regulations of Modarabas. In 1981 Modaraba Companies and Modaraba Rules were framed to provide Rules to do the business. In 2004 Prudential Regulations for Modarabas were issued.

Which is the basic structure of a Modaraba in Pakistan?

The basic structure of a Modaraba operating in Pakistan is given in the following diagram. The Companies incorporated under the Companies Ordinance, 1984 and registered with the Registrar (Modarabas), SECP are eligible to undertake floatation and management of Modarabas. The Modaraba or

What kind of activities can Modaraba be involved in?

Amongst the other activities, the Modarabas were allowed to undertake Ijarah, Murabahah, Musharakah, Diminishing Musharakah, Salam and Istisna financing activities; trading of Halal Commodities, project financing activities, investment in the stock market and can act as a special purpose vehicle.

What kind of partnership is Modaraba or mudarabah?

Modaraba or Mudarabah is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise.