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Tag: Securities and Exchange Commission of Pakistsan

  • RDA: SECP exempts banks from obtaining license

    RDA: SECP exempts banks from obtaining license

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has exempted banking companies from obtaining licenses to undertake regulated securities activity as security advisors.

    A notification issued by the SECP stated that it had granted an exemption to the banking companies licensed and authorized by the State Bank of Pakistan (SBP) to open RDA and perform the function of distributing units of Collective Investment Schemes (CIS) and/or Voluntary Pension Schemes (VPS) of multiple Asset Management Companies (AMCs) to their RDA holders, from the requirement of obtaining a license to undertake regulated securities activity as security advisor.

    READ MORE: Overseas Pakistanis deposit $1.56 billion through Roshan Digital Account: SBP

    “Provided that such banking companies shall comply with all other requirements prescribed under the applicable regulatory framework,” the SECP said.

    The regulator said that the measure has been taken to facilitate overseas Pakistanis to invest in mutual funds and private pension funds managed by AMCs, and comes as part of SECP’s efforts to increase investor-base in Pakistan’s capital markets by enabling investments through RDAs.

    READ MORE: PM inaugurates Roshan Digital Accounts for NRPs

    However, the permission is only applicable to banks that are eligible to open RDAs. For transfers to accounts other than RDAs, the license requirement is still applicable under Securities & Future Advisor Regulations, 2017.

    It is expected that this initiative will broaden the range of available investment avenues for Overseas Pakistanis and increase flow of foreign remittances to the country.

    READ MORE: SECP warns against investing in fraudulent schemes

  • Company registration crosses over 95,500 by February

    Company registration crosses over 95,500 by February

    ISLAMABAD: Total company registration with Securities and Exchange Commission of Pakistan (SECP) has crossed 96,500 by end of February 2019.

    A statement issued by the SECP said that about 1,290 new companies were registered in February. As compared to the corresponding month of last financial year, it represents a growth of 26 percent raising the number of registered companies to 96,510.

    The massive increase is the result of the SECP’s various reforms measures, i.e. introduction of simplified combined process for name reservation and incorporation, one window facility for company incorporation and NTN generation, reduction of fee, assistance of incorporation by facilitation wings of CROs etc.

    Around 75 percent companies were registered as private limited companies, while around 22 percent were registered as single member companies. Three percent were registered as public unlisted companies and limited liability partnerships (LLP).

    The trading sector took the lead with the incorporation of 195 companies, construction with 166, services with 148, I.T. with 139, tourism with 119, food and beverages with 60, real estate development with 50, corporate agricultural farming with 45, education with 32, chemical, marketing and advertisement, and transport with 27 each, engineering, and fuel and energy with 24 each, pharmaceutical with 23, textile with 21, healthcare, and mining and quarrying with 20 each, communication with 15, auto and allied with 14, broadcasting and telecasting 13, logging 12, cables and electric goods with 11 and 58 companies were registered in other sectors.

    Foreign investment has been reported in 39 new companies. These companies have foreign investors from Argentina, China, Denmark, Germany, Jordan, Kenya, Korea South, Portugal, Russia, Singapore, Sweden and the US.

    The highest numbers of companies, i.e. 468 were registered in Islamabad, followed by 322 and 240 companies registered in Lahore and Karachi respectively.

    The CROs in Peshawar, Multan, Gilgit-Baltistan, Faisalabad, Quetta, and Sukkur registered, 81, 67, 45, 39, 24 and 4 companies respectively.