Different categories of cos: SECP gets powers to approve capital expenditure/disposal of fixed assets

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has obtained powers to give approval of the capital expenditure or disposal of fixed assets of different categories of companies.

The SECP has amended the Companies (General Provisions and Forms) Regulations, 2018 through a new S.R.O.627(I)/2023.

According to the SECP regulations, in the case of a public interest company and a large-sized company, the amount of capital expenditure to be incurred on any single item shall be more than Rs 25 million and the amount of book value for the disposal of a fixed asset shall be more than Rs5 million or one percent of the total assets of the company, whichever is lower.

Insurance sector: SECP issues requirements for Grievance Handling Mechanism

In case of a medium-sized and a small-sized company, the amount of capital expenditure to be incurred on any single item shall be more than Rs5million and the amount of book value for the disposal of a fixed asset shall be more than Rs 1 million or one percent of the total assets of the company, whichever is lower. Provided that any amount of an expenditure or disposal not exceeding the aforesaid limits may be approved by a committee constituted by the board comprising at least one director; and the Committee shall submit to the Board on bi-annually basis a post facto report for information.

Copyright Business Recorder, 2023