NPOs, charitable bodies: SECP clearance a must for getting foreign funds

ISLAMABAD: The licensed non-profit organisations and charitable associations would be required to obtain prior security clearance from the Securities and Exchange Commission of Pakistan (SECP) for receiving foreign funding/donation; inducting foreign members or appointing foreign director or chief executive officer.

The SECP has notified SRO1325 (I)/2021 to issue draft amendments to the Associations with Charitable and Not for Profit Objects Regulations, 2018, here on Wednesday.

NPOs can get registered as self-regulatory entities: SECP

The company, subsequent to grant of license, shall obtain prior security clearance through an application made to the Commission in case it intends to: (i) Receive foreign funding or donation; or (ii) Induct foreign member; or (iii) Appoint foreign director or chief executive officer, the SECP stated.

According to the draft regulations, the Commission shall obtain prior security clearance in accordance with policy approved by the government in respect of foreign funding or donation or foreign promoters, directors, or chief executive officer of applicant seeking license under these regulations. The Company, subsequent to grant of license, shall obtain prior security clearance through an application made to the Commission in case it intends to: (i) Receive foreign funding or donation; or (ii) Induct foreign member; or (iii) Appoint foreign director or chief executive officer.

Copyright Business Recorder, 2021