ISLAMABAD: The Securities and Exchange Commission (SECP) has proposed amendment into Non-Banking Finance Company (NBFC) regulations under which board of director shall ensure verification of credentials and degrees of the chief executive.
The SECP notified draft amendments to NBFC Regulations 2008. The regulator proposed amendment to regulation 37 regarding terms and conditions to undertake asset management services and substituted clause (h) of sub-regulation (7), stating:
“Provided that this restriction shall not apply to transactions relating to money market instruments or debt securities or Margin Trading System (MTS) or ready future spread transactions where transactions are carried out with minimum two brokers or any other instrument/transaction as may be specified by the Commission through circular.”
The draft also added an explanation to clause (j) of sub-regulation (58), stating: “Explanation,- Reverse repo transactions involving Government Securities or other debt securities stated as authorized investments in the Offering Document under an agreement and spread transaction through ready buy and future sale or future buy ready sale transaction to unwind the existing spread transaction during the rollover dates or MTS or replacement thereof which are protected by the clearing company shall not be attracted by clause (j) provided risk management parameters are disclosed in the offering document of the scheme;”
In regulation 60, the clause (c) of sub-regulation, a proviso has been added:
“Provided that in addition to the above prescribed limit Income and Aggressive Income Schemes which invest in Margin Trading System (MTS) may charge additional MTS related expenses upto 0.5% of Net assets to the Scheme;”
