ISLAMABAD: The Secu­ri­ties and Exchange Com­mis­sion Pakistan (SECP) has passed regulations concerning capital market, insurance and corporate governance and approved the proposed amendments to Motor Vehicles Act, 1939.

The amendments in Motor Vehicles Act, 1939 has been published on SECP website inviting comments from general public and other stakeholders, in­­cluding Insurance Associa­tion of Pakistan (IAP), non-life insurers and insurance brokers to solicit their feedback.

The Commission has also published the draft General Takaful Accounting Regula­tions, 2018, to elicit public opinion.

These draft regulations have been formulated by SECP in exercise of the powers conferred under Rule 29 of the Takaful Rules, 2012, read with sub-section (1) and (2) of section 46 and read with section 167(3) of the Insurance Ordinance, 2000.

These regulations provide a framework for accounting and reporting of general takaful business of general takaful operators and window general takaful operators.

The Commission deliberated on the non-core functions of Central Depository Committee (CDC) in light of the CDC (Licensing & Operations) Regulations, 2016, and approved the amendments to Regulation 5(1) (l) of CDC Regulations to remove the restriction on depository committee to segregate its non-core business which are not incidental to its primary functions.

The Commission issued a direction to CDC to carve out the function of Share Registrar Services through a separate subsidiary only on account of a statutory requirement of Section 65(2) of the Securities Act, 2015.

The Commission also approved the Foreign Companies Regulations, 2017, which primarily covers areas pertaining to name reservation of foreign companies, registration of certain documents of foreign companies, registration of changes in documents or details concerning foreign companies, provisions regarding accounts/financial statements, registers, mortgage and charges of foreign companies, etc.

SECP also amended the procedure and filing requirements for registration of documents by a foreign company. Issuance of registration certificate and modifications in documents or details of foreign company have been simplified. Further­more, a single form for all changes in the documents and other details of a foreign company has been specified to promote easy of doing business for foreign companies.

In addition to that, procedure of certification of documents and translation of documents required to be filed by a foreign company has also been provided; available modes of fee payment – through credit or debit card, online payment or challan payment via banks - to the SECP have been specifically stated and provisions regarding applicable penalties to be imposed in case of violation of any provision of the regulations have also been included.

The Commission unanimously approved for publishing the draft amendments to the Real Estate Investment Trust Regula­tions, 2015, in the official gazette to obtain public opinion. These amendments intend to introduce changes in regulatory regime for Real Estate Investment Trusts (REIT) to promote investment in real estate through capital market.

These amendments have been proposed after taking into consideration the feedback received from all stakeholders including a REIT management company, Mutual Funds Association of Pakistan, Central Depository Company and lawyers.

Despite these improvements to promote the real estate sector, only one REIT scheme was launched since requirements to set-up a REIT scheme were considered stringent by the industry. The proposed amendments will reduce the requirements of approval from the SECP and enhance the role and responsibility of REIT Management Compa­nies RMC and trustees.

Published in Dawn, August 9th, 2018