BIS Review 106/2007  1  interest bearing securities. Investor scheme of ICP was substituted as from October 1, 1980 by a new scheme based on profit and loss sharing. ii. The state-run House Building Finance Corporation (HBFC) also eliminated interest from its operations from July 1, 1979.  iii.
In June 1980, legal framework was amended to permit issuance of a new, interestfree instrument of corporate financing called Participation Term Certificate (PTC). iv. A new law, namely, the Modaraba Companies and Modarabas Ordinance, 1980 along with the Modaraba Companies and Modaraba Rules, 1981 was promulgated to introduce modarabas, as a two-tier fund structure, for undertaking Shariah compliant businesses.