ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revised procedure for Asset Management Companies, on behalf of Collective Investment Schemes, for distribution of dividends to the shareholders.
The SECP has amended Non-Banking Finance Companies and Notified Entities Regulations, 2008 through an S.R.O. 613 (I)/2020 issued here on Friday.
According to the SECP, for the purpose of this Regulation the expression "accounting income" means income calculated under the International Accounting Standards and verified by the auditors.
Provided that in case of Exchange Traded funds accounting Income shall also include net of element of income created through income statement at the time of issuance and/or redemption of units.
Provided that in case of Exchange Traded Funds receipt and payment of element of income relating to income statement is taken to Income Statement both at the time of issuance and redemption of units.
An Asset Management Company on behalf of a Collective Investment Scheme shall, for every accounting year, distribute by way of dividend to the unit holders, certificate holders or shareholders, as the case may be, not less than ninety per cent of the accounting income of the Collective Investment Scheme received or derived from sources other than unrealized capital gains as reduced by such expenses as are chargeable to a Collective Investment Scheme under these Regulations, SECP added.
Copyright Business Recorder, 2020