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Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,072
6824hr
Pakistan Cases
1,218,749
2,92824hr
5.08% positivity
Sindh
448,658
Punjab
419,423
Balochistan
32,707
Islamabad
103,720
KPK
170,391

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said that Government Debt Securities means a debt security such as Treasury Bill (T-Bill), Pakistan Investment Bond (PIB), Government of Pakistan (GoP) Ijarah Sukuk and any other debt instrument issued by the federal government, the provisional government, the local government/authority, and any other statutory body.

The SECP here on Saturday issued an SRO 1208 (I)/2020 and superseded previous notifications, SRO 771(I)/2018, dated June 14, 2018, and SRO 1300 (I)/2018, dated October 25, 2018.

Under the SRO, the SECP has notified the following persons to whom any instrument in the nature of "redeemable capital" may be issued by a company: Mutual funds, voluntary pension schemes and private fund being managed by the NBFC; Insurer registered under the Insurance Ordinance, 2000; a Securities Broker; a Fund and Trust as defined in the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018; a company and body corporate as defined in the Companies Act, 2017; an individual investors only in case of Government Debt Securities as defined below and debt securities whose debt servicing is guaranteed by the government, it added.

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.

Copyright Business Recorder, 2020

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