The REITs Pension and Private Equity Wing is responsible for licensing, registration and regulation of: (1) REIT Management Companies and REIT Schemes and (2) registration and regulation of pension fund managers and private pension schemes and (3) Private Equity and Venture Capital Fund Management Companies and Private Equity and Venture Capital Funds in Pakistan including the entities previously licenced as venture capital companies.
REITs is an alternative asset class which will add depth to the capital market and provide transparency to the real estate sector in the form of comprehensive disclosures and accountability through a trust mechanism engrained in the REIT Regulations. REITs will provide an additional product choice to retail investors and added flexibility to investment managers.
Information related to REITs is available at following links:
- RMC Formation Guidelines
- RMC and REIT Scheme process flow diagram
- REITs Regulations 2008
- Amendments in REITs Regulations 2008
- Amendments in REITs Regulations, 2008
Private Equity is also an alternative asset class and the SECP has promulgated a Regulatory Framework for the Private Equity and Venture Capital Funds in Pakistan. The Regulations have been developed in light of the international practices and recommendations by the participants of both local and international financial markets. The PE&VC Fund is an unlisted closed-end trust open only to high net-worth individuals and institutions due to its intrinsic nature of being a high-risk asset class. The PE&VC Fund aims to provide equity for seed/start-up capital, expansion and buy-out financing primarily to private companies.
Information related to PE&VC Funds is available at following links:
The private pension funds are regulated through Voluntary Pension System Rules, 2005. The Voluntary Pension System provides a comprehensive framework for the employed and self-employed individuals to contribute into the pension funds. Pakistani nationals holding National Tax Number (NTN) or Computerized National Identity Card (CNIC) or National Identity Card for Overseas Pakistanis (NICOP) can become participants of a pension fund and avail tax credit as specified in the tax laws. Individuals contributing to the pension fund have the flexibility to choose between various investment options as well as between various fund managers.
For more information about registration as Pension Fund Manager please, click here.