SECP Deregisters LSE Capital As Modaraba Company

The Securities and Exchange Commission of Pakistan (SECP) has approved the voluntary de-registration request submitted by LSE Capital Limited as a modaraba company and has also cancelled its Modaraba Management Company licence with immediate effect. The decision was communicated through official correspondence issued by the regulator and through the company’s disclosure to the Pakistan Stock Exchange (PSX) on Friday.

In a letter dated March 4, 2026, the SECP’s Registrar Modaraba informed LSE Capital Limited that its name has been formally removed from the register of modaraba companies maintained by the commission. The regulator explained that the approval follows the merger of Modaraba Al-Mali into LSE Capital Limited and the company’s representation that it is no longer managing any modaraba entity and has no intention of launching another modaraba in the future.

Following the de-registration, the SECP has instructed LSE Capital Limited to immediately cease all activities relating to modaraba management. The company has also been directed to revise its memorandum and articles of association to reflect the change in its regulatory status.

Additionally, the regulator has required the company to remove the term “Modaraba Management” from its corporate name within 30 days from the date of the letter.

The SECP clarified that the de-registration does not limit or override the applicability of enforcement provisions contained in the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980. Any matters related to regulatory compliance, investigations, penalties or potential violations under the framework will continue to remain enforceable.

In its disclosure to the Pakistan Stock Exchange, LSE Capital Limited confirmed receipt of the SECP decision and requested the exchange to circulate the material information among Trading Right Entitlement (TRE) certificate holders in accordance with disclosure requirements.