Securities and Exchange Commission of Pakistan (SECP) has revised Non-Banking Finance Companies and Notified Entities Regulations for streamlining NBFCs providing asset management services. In this regard, the SECP has amended Non-Banking Finance Companies and Notified Entities Regulations, 2008 through a SRO.427 (I)/2015 issued here on Tuesday. The amendment is related to the amount distributable to shareholders.
According to the notification, 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 capital gains as reduced by such expenses as are chargeable to a Collective Investment Scheme under these Regulations. Provided, in case of a Closed End Fund, the realised capital gains shall also be distributed as per above requirement. Under the notification, "Closed End Fund" means an Investment Company or a Closed End Scheme.
Following is the text of the SRO.427(I)/2015 issued here on Tuesday: In exercise of the powers conferred by sub-section (2) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984), read with sub-section (4) of section 20 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997), the Securities and Exchange Commission of Pakistan hereby makes the following further amendments in Non-Banking Finance Companies and Notified Entities Regulations, 2008, namely, -In regulation 63, -
(i) the word "unrealised" appearing before the word "capital gain" shall be omitted; and
(ii) for the full stop, at the end, a colon shall be substituted and hereinafter, the following proviso shall be added, namely "Provided that in case of a Closed End Fund, the realised capital gains shall also be distributed as per above requirement."
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