In order to provide ease of doing business, the Securities and Exchange Commission of Pakistan (SECP) has developed and introduced the Corporate Debt Market Reporting System (CDMRS). The SECP has conducted an orientation workshop on the said system for the debt securities trustees (DSTs) in Karachi.
During the workshop, representatives of the DSTs were briefed on the review process of the DSTs' regulations and the proposed amendments in the new regulations. Representatives were encouraged to provide feedback on the new regulations which have been rolled out for seeking public comments.
DSTs play a vital role in the issuance of debt securities, including sukuk, term finance certificates (TFCs), participation term certificates (PTCs), commercial papers (CPs) etc, whether issued through public offer or private placement, by safeguarding investors' interests.
DSTs are entrusted with the responsibility of monitoring payment of profit, redemption of the principal amount to the debt security holders, and ensure compliance with the covenants of the respective trust deeds while reporting non-compliance, if any, to the SECP at present, the said reporting is being done manually, however, with the introduction of CDMRS, all reporting will be automated, thereby making the process for DSTs effective in terms of time and cost.-PR
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