Redeemable capital: SECP notifies persons to whom any instrument may be issued

The Securities and Exchange Commission of Pakistan (SECP) has notified Mutual Funds, Voluntary Pension Schemes, Private Funds and insurers as persons to whom any instrument in the nature of redeemable capital may be issued by the companies.
The SECP has issued a notification here Saturday.
As per section 66 (Issue of securities and redeemable capital not based on interest), of the Companies Act, a company may by public offer or, upon terms and conditions contained in an agreement in writing, issue to one or more scheduled banks, financial institutions or such other persons as are notified for the purpose by the Commission either severally, jointly or through their syndicate, any instrument in the nature of redeemable capital in any or several forms in consideration of funds, moneys or accommodations received or to be received by the company, whether in cash or in specie or against any promise, guarantee, undertaking or indemnity issued to or in favour of or for the benefit of the company.
In particular and without prejudice to the generality of the forgoing provisions, the agreement referred to in sub-section (1) for redeemable capital may provide for, adopt or include, in addition to others, all or any of the specified matters, it added.
According to the SRO 771 (1)/2018 issued by the SECP, in exercise of the powers conferred under section 510 read with section 66 of the Companies Act, 2017, the SECP, in supersession of previous notifications SRO 1142(1)/91 dated November 03, 1991, SRO 747(1)/2000, dated October 19, 2000, SRO 1089(1)/2003, dated December 04, 2003, SRO 537(1)/2004 dated June 28, 2004 and SRO 98(1)/2005 January 27, 2005, has notified the following persons to whom any instrument in the nature of redeemable capital may be issued by a company subject to the terms and conditions:
(i) "Mutual Funds, Voluntary Pension Schemes, and Private Fund being managed by NBFC"; and (ii) "Insurer registered under the Insurance Ordinance, 2000 (XXXIX of 2000), the notification added.