Securities and Exchange Commission of Pakistan issued following SROs
- S.R.O. 1197(I)/2019 dated October 03, 2019
AMENDMENTS TO THE EMPLOYEES CONTRIBUTORY FUNDS (INVESTMENT IN LISTED SECURITIES) REGULATIONS, 2018
SECP vide No. S.R.O. 1197(I)/2019 dated October 03, 2019 made amendments to the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018 [regulation 4, clause (iv)(b)], whereby allowing a minimum credit rating of “A-“ in case investment is made in Islamic listed debt securities.
Previously there was no distinction under said clause between Islamic and conventional debt securities and a minimum credit rating of “A” was prescribed.
Notification further states that Commission may, through notification, change the minimum rating of a security assigned in this clause.
- S.R.O. 1195 (I)/2019 dated October 03, 2019
ALTERATION IN THE THIRD SCHEDULE TO THE COMPANIES ACT, 2017
SECP vide S.R.O. 1195 (I)/2019 dated October 03, 2019 made alteration to the Third Schedule of the Companies Act, 2017 whereby enhancing the scope of “Non listed Public Interest Companies” for identification of applicable accounting framework and disclosure requirements as to Financial Statements of Non-Listed Companies and their Subsidiaries.
Now a “Non-listed company” under the category “Public Interest Company (PIC)” is a company, which is:
- a public sector company as defined in the Act; or
- registered and/or licensed under the Administered Legislation or Rules, or regulations made thereunder, as follows,-
- a) Non-banking Finance Companies which are Asset Management Companies, Pension Fund Managers, REIT Management Companies or Deposit Taking NBFCs;
- b) Modaraba Company
- c) Insurer
- d) Securities Exchange
- e) Commodity Exchange
- f) Central Depository
- g) Clearing House; or
- Registered, notified and/or licensed under the Banking Companies Ordinance, 1962 (LVII of 1962) or Microfinance Institutions Ordinance, 2001 (LV of 2001), as follows:
- a) Banking Company including Foreign Banking Company
- b) Microfinance Bank
- c) Development Finance Institution (DFI)”
- SRO 1194 (I)/2019 dated October 04, 2019
AMENDMENTS IN THE COMPANIES (FURTHER ISSUE OF SHARES) REGULATIONS, 2018
SECP vide SRO 1194 (I)/2019 dated October 04, 2019 made amendments to the Companies (Further Issued of Shares) Regulations 2018 (Afterwards referred as “Regulations”) as per following details: –
Regulation 3 Conditions for right issue
Regulation 3 (1) (vii) has been substituted whereby it is stated that in case of listed company, the decision of board for right announcement shall be communicated to the Commission and the securities exchange on the same day of the decision.
Previously, communication of the decision to Commission on the same day was prescribed for all companies (listed as well as unlisted) whereas in case of listed companies, communication to securities exchange on the same day of decision was mandatory as is also in substituted clause.
Regulation 4 Conditions for bonus issue
Sub-regulation 1(ii) has been substituted whereby it is stated that in case of listed company, the
resolution of board to issue bonus shares shall be communicated to the Commission and the securities exchange on the same day of the decision.
Previously, communication of the resolution to Commission on the same day was prescribed for all companies (listed as well as unlisted) whereas in case of listed companies, communication to securities exchange on the same day of resolution was mandatory as is also in substituted clause.
Regulation 9 Conditions for issuance of shares with differential rights
Clause vii has been substituted whereby condition related to consistent track record of distributable profits for the last three years has made mandatory for listed company only. Previously, this condition was applicable to all companies.
- S.R.O. 1196 (I)/2019 dated 03 October, 2019
FUNCTIONAL WEBSITE OF PUBLIC COMPANIES
- S.R.O. 1196 (I)/2019 dated 03 October, 2019 FUNCTIONAL WEBSITE OF PUBLIC COMPANIES
SECP vide S.R.O. 1196 (I)/2019 dated 03 October, 2019 directed all public companies to maintain a functional website with immediate effect. Whereas all other companies are also encouraged to maintain their functional websites. The companies are made solely responsible to place complete and accurate information on their websites and are directed to comply with the following requirements of this notification.
- Placement of information on website of public companies
Following minimum information has been prescribed in English and Urdu languages to be placed on website, in addition to any other material information:
- Profile of Company
- Investor Relations
- Information to be provided at homepage of website
- Website link of SECP’s investor education portal “JamaPunji” (www.jamapunji.pk) along with its logo at a prominent place on the homepage; and
- Information of companies’ own complaint handling cell and contact person(s) at a prominent place on homepage as a primary point of contact.
- Information of the Group companies registered with the Commission under Group Companies Registration Regulations, 2008
- Additional disclosure requirements for listed companies
In addition to the information required under clause 1 above, a listed company shall also place the following information on its website, in English and Urdu languages:
- Election of Directors
- Investor Information
- Placement of financial statements (applicable to listed companies only)
- Dissemination of website address to PSX (applicable to listed companies only)
- Measure for website security
- Sequential Order
Companies shall provide the mandatory information on website by substantially following the sequential order, as enumerated under clauses 1 and 2 of this notification.
- Relaxation from the requirements
The Commission may, on an application by the company in this behalf, relax such requirements subject to such conditions as it may deem fit.
Any contravention or non-compliance with the requirements of the notification shall be liable to a penalty of level 3, as provided under sub-section (2) of section 510 of the Act. Level 3 penalties are the highest under Companies act, 2017 which may range upto Rs. 100 million and Rs. 500,000 per day during which default continues.
Further detail of information to be provided under each heading above has been provided in the attached notification.
Please contact us in case any clarification or discussion is required in this regard.