Page 33 - Newsletter-March-2018

Governance, Transparency and Service to Members & Students www.icap.org.pk technical update Update: SECP notifies powers of the board of a company for undertaking leasing contracts of amounts exceeding Local Regulatory Framework one million rupees: SECP through S.R.O 75(I)/2018 (dated January 25, 2018) prescribed the limits for the SECP amends Intermediaries (Registration) board of a company to undertake leasing contracts, Regulations 2017 to extend the time limit for under Clause (j) of Section 183(2) of the Companies Act registration: The Securities & Exchange Commission of 2017. According to the S.R.O, the power to undertake Pakistan (SECP) has introduced the amendments to the leasing obligations under leasing contracts exceeding Intermediaries (Registration) Regulations 2017. Pursuant one million rupees shall be with the board of a company. to these amendments (notified vide S.R.O 28(I)/2018 The board shall exercise the powers on behalf of the dated January 12, 2018) the time limit for registration of company by means of a resolution passed at its meeting. persons (individuals/firms/companies) engaged in filing of documents on behalf of the companies, promoters Amendments in PSX Regulations to provide advance of the proposed companies or foreign companies has notice to the public prior to suspension of trading been extended till March 31, 2018. in the shares of non-compliant listed company: Pakistan Stock Exchange Limited (PSX) vide its notice National Assembly passes The Corporate PSX/N-472 has amended PSX regulation 5.11(l) and (m) Rehabilitation Bill 2017: The National Assembly in the interest of the public and investors. passed The Corporate Rehabilitation Bill 2017 on January 17, 2018. The bill aims to provide a comprehensive Under the amended regulations, PSX upon receiving framework to rehabilitate distressed companies and information that the SECP has passed order for winding- business in the country, to boost the economy and up of the company, shall immediately disseminate such reduce the non-performing loans. information to the general public. Further, upon receipt of information regarding filing of winding-up petition SECP proposes Draft Employee Contributory Funds against the company in Court by SECP, PSX shall provide (Investment in Listed Securities) Regulations 2018: such company with notice of 14 trading days to rectify SECP vide S.R.O 34(I)/2018 (dated January 17, 2018) issued its default by obtaining clearance from the SECP. Upon Draft Employee Contributory Funds (Investment in failure of the company to rectify its default within seven Listed Securities) Regulations 2018 for public comments. trading days from the date of such notice, trading in The draft regulations once issued and notified will shares of the company shall be allowed only on T+0(Spot) repeal Employees’ Provident Fund (Investment in Listed for next seven days, and upon continued failure of the Securities) Rules 1996 and Employees’ Provident Fund company to rectify its default, PSX shall suspend trading (Investment in Listed Securities) Rules 2016. Further, in shares of the company from 15th trading day from these regulations shall apply to all provident funds, receipt of information regarding filing of winding-up contributory pension funds or any other contributory petition against the company in Court by the SECP. retirement funds constituted by a company or where a trust has been created by a company to manage such SECP authorises Pakistan Institute of Corporate funds. Governance to create and maintain data bank of independent directors: SECP through S.R.O 73(I)/2018 SECP proposes Draft Corporate Restructuring (dated January 25, 2018) has authorised the Pakistan Companies Rules 2018: SECP vide S.R.O 35(I)/2018 Institute of Corporate Governance (PICG) to create and has issued Draft Corporate Restructuring Companies maintain the data bank of independent directors and Rules 2018 for public comments. The draft regulations post such data on its website for the use by the company aim to provide a comprehensive regulatory framework making appointment of independent directors, under for establishment and operations of Corporate sub-section (1) of Section 166 of the Companies Act 2017. Restructuring Companies in Pakistan. Under the draft rules, a company desirous of providing corporate SECP issues the Companies (Registration Offices) restructuring services has to obtain prior written Regulations 2018: SECP vide S.R.O 76(I)/2018 (dated approval of the SECP and obtain a license. January 25, 2018) published the Companies (Registration March 2018 33