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ACT V OF 2004 ACT V OF 2004 BANK OF KHYBER (AMENDMENT) ACT, 2004 An Act further to amend the Bank of Khyber Act, 1991 [Gazette of N.-W.F.P., Extraordinary, 12th July, 2004] No. PA/NWFP/Legis.1/2004/17674, dated 12-7-2004.---------The Bank of Khyber (Amendment) Bill, 2004, having been passed by the Provincial Assembly of North-West Frontier Province on the 2nd July, 2004 and assented to by the Governor of - the North-West Frontier province on 8th July, 2004 is hereby published as an Act of the Provincial Legislature of the North-West Frontier Province. It is hereby enacted as follows: 6. Insertion of sections 19A and 19B to N.-W.F.P. Act No.XIV of 1991.---In the said Act; after section 19, the following new sections 19A and 19B shall be inserted, namely: "19A. Shariah Supervisory Committee.--(1) For the purpose of Islamic banking, there shall be constituted by the Board a Shariah Supervisory Committee, hereinafter .referred to as "the Committee", comprising of eminent Ulema and Scholars, well-versed in Shariah with particular reference to Islamic economics, banking and financing. (2) The Board shall appoint one of the members of the Committee to be its Chairman. (3) The number of members of the Committee, including the Chairman, shall not be more than seven and less than five. (4) The term of appointment of the '`Chairman and the members of the Committee shall be for a period of five years, but they shall remain in office until their successors are appointed. (5) The Chairman and the members shall be eligible for re appointment. (6) For a meeting of the Committee, four members, including the Chairman, shall constitute quorum. (7) Any act or proceedings of the Committee shall not be invalid merely on the grounds of the existence of any vacancy in, or any defect in the constitution of, the Committee. 19B. Function of the Committee.---(1) The Committee constituted under section 19A shall perform the following functions: (i) guide and advise the Board on matters concerning the financial arrangements and transactions to be made or undertaken or proposed to be made or undertaken by the Bank or on behalf of the Bank, insofar, it relates to the conduct of Islamic banking by the Bank, in order to ensure that such financial arrangements and transactions are not in conflict with the Injunctions of Islam as laid down in the Holy Qur' ah and Sunnah; (ii) guide and advise the Bank, on process of the conversion of the Bank and its operations from conventional banking modes and, practices to Islamic banking modes; (iii) submit at least a quarterly report on the operations of- the Bank to the extent of its Islamic banking that it had remained in conformity with the injunctions of ,Islam and served Islam's socio economic objectives and values; (iv) design, develop and approve instruments and products to facilitate the dealings and operations, of the Bank in accordance with the Injunctions of Islam; (v) suggest and recommend the smooth switch-over of the existing branches of the Bank to Islamic modes and opening of new branches in line with the State Bank's policy of. Islamic banking; (vi) organize and oversee such training and orientation programmes, seminars and workshops for personnel of the Bank as may be needed for the purpose of Islamization and improvement of the operations and the performance of the Bank. (vii) lay down its own rules of business; (viii) form sub-committees for its assistance; and (ix) perform such other functions as may be assigned to it by the Board. (2) The decisions of Shariah Supervisory Committee so far it relates to the determination of the rules and principles of Shariah relevant to the operation, modes of financing and transactions of the Bank, shall be final and binding.".