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Tag: SECP

  • Portal launched for expeditious corporate bank account opening

    Portal launched for expeditious corporate bank account opening

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has launched a portal for expeditious bank account opening for newly registered companies, a statement said on Wednesday.

    The online portal provides banks real time access to statutory records of companies, thus enabling them to open corporate accounts without seeking physically certified copies of statutory documents, it added.

    Through this portal, the banks can access and verify company information directly from SECP’s records. The online availability of statutory records will reduce the turn-around-time for opening of corporate bank account or for availing other banking services. On the other hand, it will facilitate banks in carrying out due diligence of their corporate customers, for account opening and other services.

    Any bank can access the portal by applying to the SECP for creating their user accounts. Initially, this facility is being launched for private limited, public limited and companies formed for not-for-profit objects. In due course, data of foreign companies and limited liability partnerships will also be linked and made available.

    The SECP is planning to discontinue issuance of certified true copies in physical form and consequently, banks will only be able to access SECP’s records through this portal.

  • SECP issues list of approved CA firms for audit of insurance companies

    SECP issues list of approved CA firms for audit of insurance companies

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday issued a list of chartered accountant (CA) firms to conduct audit of insurance companies.

    Following is the list of approved auditors to conduct audit of insurance, re-insurance and Takaful entities:

    Category ‘A’ Firms:

    01. A. F. Ferguson & Co. Chartered Accountants

    02. Grant Thornton Anjum Rahman, Chartered Accountants

    03. RSM Avais Hyder Liaquat Nauman, Chartered Accountants

    04. BDO Ebrahim & Co., Chartered Accountants

    05. EY Ford Rhodes, Chartered Accountants

    06. Kreston Hyder Bhimji & Co., Chartered Accountants

    07. Ilyas Saeed & Co., Chartered Accountants

    08. KPMG Taseer hadi & Co., Chartered Accountants

    09. Deloitte Yousuf Adil, Chartered Accountants

    10. Rahman Sarfaraze Rahim Iqbal Rafiq, Chartered Accountants

    11. Riaz Ahmed & Co., Chartered Accountants

    12. Crow Hussain Chaudhury & Co., Chartered Accountants

    Category ‘B’ Firms:

    01. Baker Tilly Mehmood Idrees Qamar, Chartered Accountants

    02. PKF F.R.A.N.T.S., Chartered Accountants

    03. ShineWing Hameed Chaudhri & Co., Chartered Accountants

    04. Muniff Ziauddin & Co., Chartered Accountants

    05. Naveed Zafar Ashfaq Jaffery & Co., Chartered Accountants

    06. Parker Randall – A.J.S., Chartered Accountants

    07. S.M. Suhail & Co., Chartered Accountants

    08. Amin Mudassar & Co., Chartered Accountants

    09. Raenda Haroon Zakaria & Co., Chartered Accountants

    10. Junaid Shoaib Asad, Chartered Accountants

    11. Sarwars, Chartered Accountants

    12. IECnet S.K.S.S.S., Chartered Accountants

    13. H.A.M.D & Co., Chartered Accountants

    The SECP said that audit firms in category A are eligible to conduct audit of all insurance, re-insurance and Takaful entities.

    The audit firms in category B are eligible to conduct audit of all insurance, re-insurance and Takaful entities having gross written premium and total assets less than Rs 1 billion as per the financial statements in the immediate preceding year.

  • AMCs allowed pension digital account opening

    AMCs allowed pension digital account opening

    In a move towards enhancing accessibility and efficiency in the financial sector, the Securities and Exchange Commission (SECP) of Pakistan has given its approval for Asset Management Companies (AMCs) to open digital pension accounts.

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  • SECP’s total company registration increases to 134,797

    SECP’s total company registration increases to 134,797

    ISLAMABAD – The company registration by the Securities and Exchange Commission of Pakistan (SECP) recorded a significant milestone in January 2021 with the registration of 2,201 new companies, bringing the total number of registered entities in the country to 134,797, according to an official statement released on Monday.

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  • Customers due diligence made mandatory for securities brokers, others

    Customers due diligence made mandatory for securities brokers, others

    ISLAMABAD: It is made mandatory for regulated persons for conduct customers due diligence (CDD) of their customers/occasional customers under Anti-Money Launder Act.

    The Securities and Exchange Commission of Pakistan (SECP) issued directives through SRO 105(I)/2021 related to customers due diligence.

    The regulated person has been explained as securities brokers, futures brokers, insurers, Takaful Operators, NBFCs and Modaraba regulated by SECP under administered legislation.

    In exercise of the powers conferred under section 6A of the AML Act, the SECP directed all the regulated persons to comply with following customer due diligence requirements under section 7A(1)(b) of the AML Act and section 8(1) of the SECP AML/CFT Regulations, 2020, namely: –

    a. The regulated persons shall, at minimum, conduct CDD of their customers/ occasional customers in circumstances and matters set out in section 7(A)1 of the AML Act.

    b. For the purposes of section 7(A)(1)(b) of the AML Act, the regulated persons shall conduct CDD in respect of every occasional customer.

    Any person to whom this directive applies and who contravenes or fails to comply with the requirements of this directive shall be subject to sanction in accordance with AML/CFT Sanctions Rules, 2020 issued under the AML Act, 2010 and imposed by the Commission according to Clause (h) of Sub-section (2) of Section 6A of AML Act.

    This directive shall not affect anything done, order made, show cause issued, proceeding commenced, penalty imposed, investigation, inspection or inquiry conducted or any other action taken or done under or in pursuance of above referred superseded directive shall be valid and under lawful authority.

  • SECP directs brokers to provide financial information through new online format

    SECP directs brokers to provide financial information through new online format

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Thursday directed stock brokers to provide financial information through a newly developed online system.

    The SECP issued Circular No. 02 of 2021 for online submission of financial information by securities brokers.

    The SECP directed the securities brokers to submit online financial information in a new standardized format on monthly basis as per the following details:

    — All securities brokers shall develop a Standard Trial Balance Report through mapping of secondary codes in their back-office system on the prescribed format. The brokers shall take all necessary steps to implement the reporting as given in the said format.

    — All securities brokers/TREC holders shall upload the report on their respective e-services portal through the linke “PSX TREC Holder Financial Information Portal”, within ten calendar days after the end of each month. The first monthly report of March 2021 shall be submitted through the system by April 10, 2021.

    The SECP said the latest circular will supersede Circular No. 04 of 2013 dated April 16, 2013 issued by the commission which acquires submission of financial information to the commission through online financial report system.

    The SECP issued guidelines for submission of financial information:

    — All securities brokers are required to implement the Standard Trial Balance Report by mapping / tagging the secondary codes in their existing bank office system either through their software vendors or themselves as the case may be.

    — Securities brokers are required to provide the values data corresponding to the nature of each account title and code prescribed in the report format.

    — All codes and account head mentioned in BOLD in the report format should not contain any value (or sum of values) in the report generated from the back-office system of securities brokers.

    — All securities brokers/PSX TREC holders shall generate MS Excel based Standard Trial Balance Report and upload the report for submission to the SECP through e-services portal using their existing credential i.e. login ID, Password and PIN.

    — Under e-services portal of SECP a separate link titled “PSX TREC Holder Financial Information Portal” is provided for uploading of the report.

    — SECP team will conduct training sessions to facilitate the securities brokers for submission of Standard Trial Report through e-services portal.

    — In addition to above, filing of quarterly returns under existing FRS will continue till the effective date of the circular and amendments in PSX Rule Book.

  • Stern action initiated against companies using FBR, SECP registrations for illegal investment

    Stern action initiated against companies using FBR, SECP registrations for illegal investment

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has initiated stern action against companies engaged in attracting the general public for unauthorized investments by using registrations of relevant authorities.

    In a statement on Thursday, the SECP said that mere registration of a company with SECP does not authorize acceptance of deposits from general public.

    Deposit taking by companies other than banking companies is illegal in terms of section 84 of the Act. Financial services including car financing, leasing, acceptance of deposits, house financing etc. can only be offered by specialized companies holding valid licence and regulatory approvals.

    General public is advised in their own interest to be careful, not to deal and invest in illegal schemes offered by such companies.

    In this regard, the SECP while exercising its regulatory power to curb the menace of illegal business practices in the country has taken stern actions against “Lasani Oil Traders (Private) Limited” and “New Lassani Chicks & Chicken (Private) Limited”.

    SECP has promptly initiated legal proceedings for the winding up of these companies in terms of section 301 read with section 304 of the Companies Act, 2017 and disqualification of directors thereof in terms of section 172 of the Act.

    SECP has observed that both the companies are using their registration with SECP and FBR to win public confidence and are publicizing unauthorized investment schemes through Facebook groups and posts on social media.

    In an attempt to block companies’ access to general public, SECP approached PTA to block Facebook/twitter pages, cell phone numbers registered in the name of companies and its directors. The SECP has also made reference of the case to the relevant law enforcement agency.

    The SECP has made public a list of 50 companies, involved in similar un-authorized business activities including illegally collecting deposits from investors by making false promises of exceptionally tantalizing returns.

  • SECP issues requirement for digital account opening by AMCs

    SECP issues requirement for digital account opening by AMCs

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday issued criteria for opening of digital accounts for Pakistani individual customers by Asset Management Companies (AMCs).

    Following is minimum criteria for opening of digital accounts for Pakistani Individuals by AMCs:

    Eligible customers;

    01. Pakistani individual customers having:

    i. an active account at any bank/active e-wallet mobile account; and

    ii. an active mobile number in his/her own name.

    02. Minimum customer information/personal profile/documents required by AMCs:

    The customer shall access the online portal (website, mobile App or any third party application) and provide the following minimum information for the purpose of registration:

    i. Customer’s name

    ii. Father/spouse name

    iii. Date of birth

    iv. CNIC/identification number with scanned copy along with date of issuance and expiry

    v. Existing residential and mailing address

    vi. mobile number registered in his/her name

    Provided that the AMCs may in special circumstances use where the Pakistani individual customer does not have mobile number in his/her own name, the mobile number of close family member or the mobile number provided to Pakistani individual customers by his/her employer, or the international mobile number of Pakistani individual customer having CNIC/NICOP and an active account at any bank/active E-Wallet mobile account subject to the following:

    In case where mobile number of close family member is provided, a duly signed written authorization, on prescribed format, from both the Pakistani individual customers and the person whose mobile number is being provided;

    In case where mobile number provided by employer is used, Pakistani individual customer shall provided the bill of service provider in accordance with the procedures and a letter from employer stating that the said mobile number is provided by employer to its employee;

    In case where international mobile number is used, Pakistani individual customers shall provide the bill of service provider in accordance with the procedures.

    Explanation: For the purpose of this circular, the term ‘close family member’ shall mean and include spouse, dependent parents and dependent children only.

    vii. email ID

    viii. Mother’s maiden name

    ix. Bank/E-Wallet Name and Bank Account IBAN Number / E-Wallet Mobile Account Number

    x. Digital / online signature card

    xi. Details of nominee

    xii. Source of fund/income

    xiii. dividend mandate

    xiv. operating instructions, if any

    xv. statement of account request

    xvi. digital/online declaration regarding profession and source of fund/income along with uploading of valid documents as proof thereof

    xvii. digital/online undertaking declaring that funds being invested are his/her own funds and that the funds beneficially owned by other persons will not be used and uploading of declaration / undertaking as a proof thereof

    xviii. Digital/online consent for account opening and using information/documents provided digitally / online for necessary due diligence and verification functions

    xix. Digital / online acceptance of terms and conditions of the account

    xx. Any other documents required under AML Act, 2010 and Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations, 2020 (AML/CFT Regulations) (customer specific)

    After submission of the required information and documents, a message shall pop up for the customer on the online portal that his/her request is in process and he/she will receive an One Time Password (OTP) once the basic information is verified.

    03. Verification by AMCs

    AMCs will carry out required due diligence including but not limited to:

    a. verification of the CNIC/National Identity Card for Overseas Pakistanis (NICOP)/ Pakistani Origin Card (POC) of customer through NADRA VERISYS;

    b. the CNIC and mobile number pairing (whether it is registered in the name of the customer) through Pakistan Mobile Network Database.

    Provided further that in all the circumstances mentioned in proviso of clause 2(vi), AMC shall perform digital verification to conduct online face to face interaction on real time basis through any virtual meeting application (Whatsapp, skype etc.) for authentication of the customer and original identification document.

    c. Screening of the prospective customer against application sanction regimes (UNSC, NACTA, etc.)

    d. IBAN / E-Wallet Mobile Account Number verification through 1-link title fetch service or IBAN/W-Wallet Mobile Account Number and CNIC pairing or Digital Verification to conduct online fact to face interaction on real time basis through any virtual meeting application (Whatsapp, skype etc.) for authentication of the customer and original identification document;

    Provided that for such Pakistani individual customer who do not have mobile number is their own name or provide international mobile number, IBAN/E-Wallet Mobile Account Number verification through 1-Link title fetch service or IBAN/E-Wallet Mobile Account Number and CNIC Pairing and Digital Verification to conduct online face to face interaction on real time basis shall be mandatory.

    e. Verification of contact details through one time password, email or call back;

    In case the verification is successful, an OTP shall be generated and immediately sent on the designated mobile number and/or email address of the customer, as the case may be, valid for a limited period of time.

    f. AMC shall ensure before opening the account that all documents required for screening and risk rating are available and it can conduct screening and risk rating.

    g. the customer will not be allowed to proceed in case the information cannot be successfully verified by AMC.

    04. Account Opening and Activation:

    The AMC will proceed with opening of account after the customer has successfully accessed the portal using the OTP. Account may be opened after due diligence checks and satisfactory completion of the requirements. The opening of customer account shall be subject to compliance with all other applicable legal and regulatory requirements.

    05. Additional Measures by AMC:

    > AMCs shall develop SOPs for:

    * Information and documents to be collected through website/mobile App;

    * Turnaround time (TAT) for decision to open or decline account is 3 working days from the time of upload of all information/documents. In case of any discrepancy in documents or where additional documents are required, AMC would revert back to customer within three working days;

    > AMCS shall not open digital/online accounts in joint names;

    > AMCs may record the real time online fact to face interaction call with the customer while carry out KYC process for opening of account;

    > AMCS to ensure data/ privacy protection, safety and security of information/ documents through reliable IT infrastructure;

    > AMCs should ensure to deploy necessary technical infrastructure and system while establishing business relationship through e-KYC to comply with AML/CFT regime of the country;

    > After opening of account, as part of ongoing monitoring and customer due diligence, AMCs may seek additional information from customers based on their ongoing internal risk assessment and compliance framework;

    > AMCs may carryout periodical re-profiling of the customers in accordance with AML/CFT policy;

    > AMCs shall deploy adequate controls to ensure that customer is not a robot (e.g. CATPCHA Codes);

    > AMCs shall ensure customer care service through call center;

    > To eliminate the risks of impersonation of the customer or identity theft, the AMC should take appropriate security measures;

    06. Types of CIS offered by AMCs

    > All types of mutual funds may be offered to the customers subject to minimum investment limits as per the Constitutive Document of the fund and compliance with disclosure, disclaimer, risk profiling, risk categorization and other regulatory requirements.

    AMCs shall at all times comply with all requirements of AML Act, 2010 and AML/CFT Regulations, 2020 issued by SECP from time to time.

  • SECP registers 1,956 new companies in November

    SECP registers 1,956 new companies in November

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has registered 1,956 new companies in November 2020, indicating an increase of 41 percent as compared with the same month of the last year, according to a statement issued on Tuesday.

    Around 71 percent companies were registered as private limited companies and 26 percent were registered as single member companies.

    Three percent were registered as public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnership (LLP).

    In November, around 99 percent companies were registered online, while 30 percent of new incorporations completed same day.

    This month, 117 foreign users registered companies from overseas.

    The trading sector took the lead with the incorporation of 319, IT with 230, construction with 209, services with 198, real estate development with 139, corporate agricultural farming, & food and beverages with 74 each, ecommerce with 73, engineering with 60, tourism with 51, education with 48, pharmaceutical with 47, market & development with 43, textile with 40, transport with 35, chemical with 33, healthcare with 31, auto & allied with 27, fuel & energy, and mining & quarrying with 23 each, logging with 22, cosmetics & toiletries with 21, communications with 17, broadcasting & telecasting with 16, power generation with 14, cables & electric goods, and steel & allied with 12 each, and 65 companies were registered in other sectors.

    Foreign investment has been reported in 34 new companies. These companies have foreign investors from, Australia, China, Germany, Iran, Italy, Kazakhstan, Korea South, Lebanon, Mozambique, the Netherlands, Russia, Spain, Switzerland, Syria, Turkey, the UAE, the UK and the US.

    The highest numbers of companies, i.e. 628 were registered in Islamabad, followed by 625 and 349 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 127, 109, 64, 27, 22 and 05 companies respectively.

  • SECP allows online account opening to capital market investors

    SECP allows online account opening to capital market investors

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Thursday allowed Pakistani residents and non-resident investors to open online account in the capital market.

    A statement issued by the SECP stated that this new regime is part of the SECP’s digital transformation agenda, allows investors to seamlessly open his or her account with a broker from anywhere in the country without requiring to submit any documents physically or visit a broker. “The new hassle-free process shall enable investors to commence trading swiftly.”

    However, to ensure maximum investor protection, an alternate online customer verification process has been introduced for opening of online account.

    “The online verification will be conducted independently by the Centralized KYC Organization. In addition, the account opening process has been made simpler by reducing the number of pages to be signed by the investors.”

    The new account opening system is a continuation of SECP’s reform agenda that aims at enhancing investor outreach, introducing digitization and ensure robust growth of the capital markets.

    A sizeable investor base is a crucial stepping stone for development of any capital market and is therefore part of the major objectives of the SECP.

    “It is expected that the new regime would revolutionize Pakistan’s capital market and contribute significantly towards economic growth in the country by channeling investment and savings through the market,” the SECP said.