Introduction
SECP issued SRO 1300(I)/2018 dated October 25, 2018 to notify persons to whom any instrument in the nature of “redeemable capital” may be issued by a company under Section 66 of the Companies Act 2017.
Commentary
Extracts of the Section 66 of the Companies Act 2017: The eligible persons to whom redeemable capital may be issued are 1) one or more scheduled bank, 2) financial institutions, or 3) such other persons as are notified for the purpose by the Commission either severally, jointly or through their syndicate.
- For the purpose of notification of persons as explained under Para 2 above; Commission under SRO 1300(I)/2018 NOTIFIED following persons to whom the any instrument in the nature of redeemable capital may be issued by the Company: –
- A Securities Broker;
- A Fund and Trust as defined in the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018; and
- A Company and Body Corporate as defined in the Companies Act, 2017.
- Under Proviso: “Individual Investors” are notified as in addition to the above persons to whom any instrument of redeemable capital of the Government including Government Debt Securities can be issued to an individual investor in addition to the persons mentioned to above.
- “Government Debt Security” defined as “a debt security such as Treasury Bill (T-Bill), Pakistan Investment Bond (PIB), Government of Pakistan (GoP) Ijara Sukuk and any other debt instrument issued by the Federal Government, Provincial Government, Local Government / Authority and any other statutory body”.
Link of Document
Please click on link below to read the Original Notification
