Search Results for: regulations

These companies are licensed by the Commission and are responsible for providing housing finance services. Incorporation of NBFC and Grant of License Non-Banking Finance Company licensed by the SECP to carry out Investment Finance Services, Leasing Business, or Housing Finance Services(“HFS”) in accordance with Part VIII- A of the Companies Ordinance, 1984 and the Non-Banking Finance Companies & Notified Entities Regulations, 2008. The NBFC is to be incorporated under the Ordinance read with provision of the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003. Following is the suggested chronological methodology for Incorporation of NBFC and licensing as Investment Finance Service, Leasing Business or Housing Finance Service. [colorBox color="#e24f57" heading="NOC for Formation of NBFC" small="NOC for formation of NBFC granted by SCD"]Application should be submitted to Specialized Companies Division, SECP Headquarter Islamabad for obtaining permissi...

Commodity Exchange has several benefits associated with it. The most important of them are price discovery and price risk management. Licensing of a commodity exchange is covered under section 5 of the Futures Market Act, 2016. All commodity brokers are required to be registered with SECP for providing service as broker. Licensing of commodity brokers is covered by the Commodity Exchange and Futures Contracts (CEFC) Rules, 2005. The CEFC Rules prescribe the eligibility conditions, registration procedure, and obligations and responsibilities of brokers. Further, the CEFC Rules also prescribe procedure for registration of commodity futures contracts. Registration of Commodity Brokers An application for registration by persons meeting the eligibility criteria as mentioned under sub-rule 1 of Rule 11 of the CEFC Rules, 2005 shall be made to the Commission along with a receipt evidencing payment of non-refundable fee. The Commission, while considering the application for registratio...

The existing central depository (Central Depository Company of Pakistan Limited) which had previously been registered under rule 4 of the Central Depository Companies (Establishment and Regulation) Rules, 1996, has been issued license under section 49 of the Act after commencement of the Act and expiry of its registration. Any new applicant may also apply for license as a central depository provided it meets the licensing requirements and other conditions as provided in Part IV of the Act and the Central Depositories (Licensing and Operations) Regulations, 2016....

The existing clearing house (National Clearing Company of Pakistan Limited) is registered under rule 4 of the Clearing Houses (Registration and Regulation) Rules, 2005, and upon commencement of the Act, is deemed to be licensed under the Act. Upon expiry of its existing license, it will be required to obtain licence under section 24 of the Act. Any new applicant may also apply for license of a clearing house provided it meets the licensing requirements and other conditions as provided in Part III of the Act or any other conditions as may be prescribed through regulations made by the Commission under section 169 of the Act....

Securities broker is a regulated securities activity under the Securities Act, 2015 and all securities brokers are required to be licensed with the SECP for offering brokerage services to the general public. Licensing of the securities brokers is regulated by the Securities Act, 2015 read with the Securities Brokers (Licensing and Operations) Regulations, 2016 (SB Regulations). The regulations prescribe the eligibility conditions, licensing procedure, effect for refusal of licence, renewal, general obligations and responsibilities of securities brokers. A Trading Right Entitlement Certificate (TREC) holder of the Pakistan Stock Exchange Limited (PSX) desirous of acting as broker shall make an application to the SECP in terms of regulation 5 of the SB Regulations for grant of licence through PSX. The SECP, if satisfied that the applicant is eligible for licence as a securities broker and in compliance with the provisions of the Act, these regulations and any directives/guidelin...

Debt Securities Trustees Debt Securities Trustee is a regulated securities activity under the Securities Act, 2015. The role of Debt Securities Trustee (DSTs) is to safeguard the interest of debenture/TFC holders. For regulations of DSTs, SECP promulgated the Debt Securities Trustee Regulations, 2017 (DST Regulations) on January 11, 2017. All DSTs are required to be licensed with SECP before providing business as debt securities trustee. DST Regulations prescribe the eligibility conditions, registration procedure and duties and responsibilities of DSTs. Grant of Licence to DSTs An application for grant of licence as a Debt Securities Trustee shall be made to the Commission in Form A along with all the documents specified in Annexure-I and receipt evidencing payment of non-refundable fee of such amount as set out in Regulation 5. The Commission, while considering the application for registration, may require the applicant to furnish such further information or clarification regardi...

Share Registrar and Balloters Share registrars and balloters are the regulated securities activities under the  Securities Act, 2015. The role of Share Registrars and Ballotters is very important, as they are involved in the issuance and transfer of shares, maintenance of share registers, issuance of dividend warrants and bonus shares on behalf of the issuer.  Ballotters role is also of important as they have to conduct fair and transparent balloting for the investors in Initial Public Offering (“IPO”). SECP promulgated the Share Registrars and Balloters Regulations, 2017 (SRB Regulations) on January 11, 2017. All the share registrars and balloters are required to be licensed with SECP for providing business as Share registrar and Balloter. SRB Regulations prescribes the eligibility conditions, licensing procedure and duties and responsibilities of Share Registrars and Ballotters. Grant of Licence to SRB An application for grant of licence as a share registrar and balloter...

The role of Underwriters, Consultants to the Issues and Bankers to Issues in Initial Public Offering (IPOs) is of an important nature as they not only assist companies in raising funds through public offerings but also provide comfort to the prospective investors. Underwriting is a regulated security activity under the Securities Act, 2015. Further the federal government in exercise of its power conferred under Section 63 of the Act, has also notified the Consultant to the Issue and Banker to the Issue as regulated securities activity under the Act vide their notice dated April 26, 2017. For regulations of underwriters, consultant to the issue and bankers to an issue, the SECP promulgated the Public Offering (Regulated Securities Activities Licensing) Regulations, 2017 on May 02, 2017. All the underwriters, consultants to the issuers and bankers to the issues shall obtain licence from the SECP under these regulations. These regulations prescribe the eligibility conditions, regi...

Credit rating company is a regulated securities activity under the Securities Act, 2015. Credit Rating Companies (CRC) are an integral component of a vibrant and healthy debt capital market. CRCs are regulated under the Act read with the Credit Rating Companies Regulations, 2016 (CRC Regulations), promulgated on August 5, 2016. At present two CRCs are functioning in Pakistan i.e. Pakistan Credit Rating Agency Limited (PACRA) and VIS Credit Rating Company Ltd. PERMISSION TO FORM A CREDIT RATING COMPANY An application for permission to form a credit rating company  by  persons meeting the eligibility criteria as mentioned in regulation 4 of the CRC Regulations shall be made to the Commission on Form ‘I’ along with all the documents specified in Annexures to Form-I and receipt evidencing payment of non-refundable processing fee as specified in Schedule-I of the CRC Regulations. The Commission on being satisfied that the person seeking permission to form a credit rating company has...

The Commission in its 27th meeting held on July 19, 2022 reconstituted Shariah Advisory Committee (SAC) in terms of section 11A of the Securities and Exchange Commission of Pakistan Act, 1997 and the Shariah Advisory Committee (SAC) consists of following members: Mufti Irshad Ahmad Aijaz (Chairman) Mufti Ehsan Waqar (Member) Omar Mustafa Ansari (Member) Ahmad Hasan (Member) Head of Islamic Finance  (Ex-Officio Member) SAC gives its opinion on Islamic capital market matters. The SAC is entrusted to provide a non-binding Shariah opinion on the laws, rules, regulations, agreements, standards, products and documents presented to it. The SAC also advises Commission on Shariah issues presented to it. The guidance and advice of the SAC enhances the credibility of Islamic financial institutions and products....