The Supreme Court has upheld a decision by the capital market regulator to transfer the management of two Islamic investment funds to Karachi-based KASB Modaraba, accelerating efforts to strengthen financing by investment partnerships.
Earlier today KASB Modaraba said it had taken management control of first Pak Modaraba and first Prudential Modaraba, a decision first taken in 2010 but challenged in the courts.
Modarabas are a form of Islamic investment partnership where assets are managed on behalf of clients, with income and expenses shared under a pre-agreed ratio.
As of March, the three modarabas held a combined Rs1.9 billion ($18.7 million) worth of assets, dwarfed by larger peers such as Standard Chartered Modaraba with Rs5.3bn in assets.
