KARACHI (November 29 2006): The Securities and Commission of Pakistan (SECP) has changed the schedule of new risk management system, which was scheduled to be implemented from December 4, 2006. In a meeting of the board of directors of Karachi Stock Exchange (KSE) held here on Tuesday the directors were briefed about the changed schedule of new risk management system.

The board reviewed the exposure and decided to increase margin from 30 percent to 50 percent from December 4, 2006, 75 percent from April 30, 2007 and 100 percent from October 1, 2007. It was also decided that the percentage of free float shares have been increased to two percent from 0.2 percent as decided earlier.

ANNUAL RETURNS: The SECP has directed all registered companies to file annual returns with the year ended on or before June 30, 2006. According to a press release of SECP issued in Islamabad on Tuesday, all these companies are required to file annual return with the concerned registrars of companies. All listed companies have to file their annual returns with the registrar by December 15 and other companies by November 30.

The SECP said that compliance with this statutory requirement of the Companies Ordinance, 1984 is mandatory for all registered companies, and non-compliance could lead to imposition of penalties.

Under section 156 of the Ordinance, the companies have to file annual returns on prescribed Forms A/B with the concerned registrar within 45 days in case of listed companies, and 30 days in case of any other companies, from the date of the annual general meeting (AGM) or where no such meeting is held, from the last day of the calendar year. AGM is required to be held, by all companies, within a period of four months of the close of their financial year.

The requirement for the annual return is contained in the Third Schedule to the Ordinance. To facilitate filing of these returns, the SECP has set up special counters at its Company Registration Offices (CROs) at Karachi, Lahore and Islamabad, which will remain open till 10:00 pm on November 30 and December 15 to facilitate the filing of annual returns.

The SECP has already revamped the format of Annual Return forms to make them simpler for corporate management. To further facilitate submission of annual returns, the SECP is putting in place a system for online filing of annual returns.

It is envisaged that such initiatives would further encourage the registered companies for timely filing of returns and would accelerate the rate of corporate compliance, the SECP press release added.

Copyright Business Recorder, 2006