SECP issues list of persons for issuance of instruments

SECP issues list of persons for issuance of instruments

ISLAMABAD: Securities and Exchange Commission (SECP) on Tuesday issued a notification to revise previous SRO regarding list of persons to whom any instrument in the nature of ‘redeemable capital’ may be issued by a company.

The SECP notified the following persons to whom any instrument in the nature of “redeemable capital” may be issued by a company, subject to the terms and conditions as provided under section 66 of the Act, namely:-

(i) mutual funds, Voluntary Pension Schemes and Private fund being managed by NBFC;

(ii) insurer registered under the Insurance Ordinance, 2000 (XXXIX of 2000);

(iii) a Securities Broker;

(iv) a Fund and Trust as defined in the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018;

(v) a company and body corporate as defined in the Companies Act, 2017(XlX of 2017);

(vi) all individual investors including accredited individual investors, in case of Government Debt Securities, and debt securities whose debt servicing is guaranteed by the Government;

(vii) accredited individual investors, in case of corporate debt instruments: Provided that the company shall ensure the following:

(a) instrument is not placed to more than fifty (50) accredited individual investors;

(b) information memorandum contains all applicable information/disclosures as prescribed under the Public Offering regulations, 2017; and

(c) instrument is not sold to non-accredited investors in secondary market.

Explanation: – for the purposes of this notification the expressions, –

(a) “accredited individual investor” means an individual investor registered with National Clearing Company of Pakistan Limited and having net assets of Rs. 5 million or more; and

(b) “Government Debt Securities” means a debt security such as Treasury Bill (T-Bill), Pakistan Investment Bond (PIB), Government of Pakistan (GoP) Ijarah Sukuk and any other debt instrument issued by the Federal Government, Provisional Government, Local Government/Authority, and any other statutory body.

Leave a Reply

You have to agree to the comment policy.