SECP tells holding companies to enhance public disclosure

ISLAMABAD: Group Companies Registration Regulations, 2008, were issued by the Securities and Exchange Commission of Pakistan in 2008 to provide a regulatory framework for the formation of group companies, comprising a holding company and its subsidiaries and to streamline the group ownership structures.

The Regulations provided a registration mechanism of holding companies along with their subsidiaries as a group with the SECP, and also provided an enabling framework for the group companies intending to avail themselves of tax relief from the FBR.

In order to further enhance the public disclosure of intra-group shareholding and financial position of the group companies, it has now been required that all the holding companies registered under the Regulations shall maintain their websites and place thereon the annual audited financial statements of their group along with their directors’ report and the auditors’ report. SRO No. 640(I)/2011 was issued on June 22, 2011, mandating the aforesaid requirement, and the holding companies have been required to report the compliance by intimating the SECP of their website address within 15 days of the issuance of the notification.

Arshad Ali to head FPCCI’s committee on Labour Manpower Export and Overseas Pakistanis

Syed Arshad Ali, a prominent name in the hospitality industry and a former chairman of the Pakistan Hotel Association, has been appointed as the Chairman of the FPCCI’s Standing Committee on Labour Manpower Export and Overseas Pakistanis.

Arshad Ali, Managing Director, Integrated Facilitators (Pvt) Ltd, has been assigned the responsibility by Senator Haji Ghulam Ali, President, Federation of Pakistan Chamber of Commerce & Industry (FPCCI), for the year 2011.

SECP proposes changes in NBFC Regulations, 2008

The Securities and Exchange Commission of Pakistan (SECP), vide S.R.O. 350 (I)/2011 dated May 5, 2011, has proposed certain amendments to the NBFC & Notified Entities Regulations, 2008 (the “Regulations”) and have also placed these amendments on its website to solicit comments from the public and concerned quarters.

While allowing operational flexibility to fund managers, measures have also been introduced to ensure investor protection. It is a step forward by the regulator for a more conducive regulatory framework to help the industry participants to benefit from growth opportunities.

The significant amendments encompass:

1. Replacement of seed capital requirements with minimum fund size to offer flexibility to fund managers in launching new mutual funds;

2. Restricting annual equity brokerage paid by a mutual fund to a single broker to 10% of its total brokerage expense, for promoting competitive brokerage services. Besides minimizing concentration risk posed to mutual funds, such measures are also aimed at encouraging other financial market participants to benefit from the diversified brokerage services rather than routing bulk transactions through single or a few brokers.

3. Empowerment of unit holders for decisions on material aspects of a mutual fund including transfer of its management rights;

4. Enhancement of role of trustees of mutual funds to ensure better safeguarding of unit holder interests and prohibiting them from investing in mutual funds for which they act as trustee.

5. Imposition of 5% cap on investment by a single unit holder in a mutual fund with the objective to contribute towards broadening the investor base.

6. Removal of minimum lease period for any lease to provide operational flexibility to leasing companies;

The SECP, as part of its continuous efforts for development of the capital markets has proposed the amendments in accordance with the best international practices and are aimed at encouraging the growth of mutual funds.

Any suggestions or comments on the proposed amendments may be submitted by May 21, 2011 at NBFC.Comments@secp.gov.pk

Press Statement: Karachi Chamber of Commerce and Industry

SECP nominate Aftab Ahmad Khan, Mumtaz Hussain Syed, Asif Kamal and Bushra Naz Malik as LSE directors

The Securities and Exchange Commission of Pakistan (SECP) has nominated high profile and experienced professionals from the financial and capital markets as directors on the Board of Lahore Stock Exchange (LSE) for 2011.

They are Mr. Aftab Ahmad Khan, Group Director (Finance & Accounts), Nishat Group; Mr. Mumtaz Hussain Syed, Chief Executive, Crosby Capital Pakistan (Private) Limited; Mr. Asif Kamal, Chairman, Trust Investment Bank Limited; and Ms. Bushra Naz Malik, former Group Director, Finance and Chief Financial Officer, Kohinoor Maple Leaf Group.

They come from the fields of project finance, accounts and investment banking have valuable capital market and corporate sector experience and can be seen as a fair mix of the requisite qualification and skills on the LSE Board.

Mr.. Aftab Ahmad Khan, Fellow Member of the Institute of Chartered Accountants of Pakistan, has over 40 years of diverse professional experience. Presently, he is the Group Director (Finance & Accounts) of the Nishat Group, in which capacity he looks after financial and strategic planning and investment appraisal for the Group. Additionally, he is serving as Director on the Boards of the MCB Bank Limited and various other companies in the textile, paper, energy and hotel/ tourism sectors. He also served in the public sector organizations including Punjab Industrial Development Board dealing with Ghee, Sugar and Rice Milling and has been Director at the National Investment Trust Limited, Karachi from 2008 to 2010.

Mr. Mumtaz Hussain Syed, an investment banker by profession, has more than 22 years of extensive experience in the fields of project finance, investment management and analysis, business development and general management and has several high profile transactions in energy, telecommunications, banking, financial services industry and other sectors to his credit. Presently, he is the Chief Executive of the Crosby Capital Pakistan (Private) Limited which is providing financial advisory, business restructuring and management consulting services to various clients. Holding an MBA degree from the Lahore University of Management Sciences, he possesses extensive capital market experience covering privatizations, acquisitions, divestitures, debt arrangement, equity placement and joint ventures. He has also served on the Board of Directors of a number of listed companies as well as advisory positions with the government of Pakistan.

Mr. Asif Kamal, a graduate in Finance from the Business School of the University of South Florida, is presently the Chairman of Trust Investment Bank Limited: one of the leading investment banks in Pakistan. He is also the Chief Executive of Tricon Developers Limited, a real estate development company. He has also served as the Chief Executive of Genesis Securities Private Limited from 1994 to 2006, which is a financial advisory company. His professional and capital market experience accumulating up to more than 16 years, Mr. Kamal is also a member of the Federal Board of Investment since 2008 and a member of the Board of the Privatization Commission since 2010.

Ms. Bushra Naz Malik, Fellow Member of the Institute of Chartered Accountants of Pakistan, has over 16 years of professional and financial market experience which includes her 12-year tenure as the Group Chief Financial Officer of the Nafees Group of Industries, Lahore and a 4-year term as the Group Director, Finance and Chief Financial Officer of the Kohinoor Maple Leaf Group. She did her MBA at Kellogg Business School in the US and the Schulich Business School, Canada. She also has an LLB degree from the Punjab College and Advanced Management Program certification from the Harvard Business School.

It is expected that the LSE Board of Directors, in particular, and the capital markets in general, will greatly benefit from the mix of extensive knowledge, experience and diverse expertise the above professionals will be offering, and that the said individuals will be contributing positively towards promoting principles of good governance and transparency.

Mufti Munib ur Rehman appoints as Memeber of Modarba religious board

ISLAMABAD, March 11: The federal government has appointed the renowned religious scholar Professor Mufti Munib ur Rehman as a member of the Religious Board for Modarabas (Islamic financial institutions) with immediate effect. The appointment has been made in pursuance of Section 9 of the 1980 Modaraba Companies and Modaraba (Floatation and Control) Ordinance.

This position fell vacant with Mr. Imran Ahsan Nyazee’s resignation. Mufti Munib ur Rehman will serve out the remaining term.

The board considers applications for floatation of modaraba in light of Shariah. It provides guidance, based on the teachings of Islam, to the Registrar (Modarabas) of the Securities and Exchange Commission of Pakistan.

Consensus needed to tackle economic challenges: Ebad

Dr Ishrat Ul Ebad Khan, Governor Sindh has said that political consensus amongst all parties a pre-requisite to face challenges faced by the country.

Addressing the Annual Dinner 2010 of Korangi Association of Trade and Industry (KATI), the Dr Ebad said that the country and nation is facing various challenges particularly law and order and declining economy and all the stakeholders should sit together as the government could not face the challenges alone and without the help of all parties and the people. He said that MQM has already rejected the recent increase in POL prices announced by government. He said that MQM had rejected the POL price increase in the past as it was a big burden on the general masses. Governor said that though condition of economy is not good but still some indicators such as building up foreign exchange reserves and increase in exports are showing that the situation is not that bad either. He said that industry in Karachi has been exempted from load-shedding and the gas shortage has also been resolved with the consultation of KESC and SSGC's managements and the stakeholders. He mentioned that KATI has become a distinctive trade and industrial body through its efforts for the betterment of trade and industry. While paying tributes to Patron In-chief KATI, S M Muneer and his team he advised other trade bodies to follow his footsteps.

S M Muneer while expressing his dismay over 10 per cent increase in POL prices, said that the economy is already reaching on the verge of collapse the government has once again increased the prices of petroleum which would be extremely detrimental to the national economy and the break the backbone of general masses. He said that due to anti-people decisions would result in unrest among the people. He pointed out that one day strike in Pakistan causes Rs5 billion revenue loss to the national exchequer and government should also realize this factor and instead of increasing POL and utilities prices should try to avoid greater losses in the shape of strikes, industry's shut down and export shipments' failures. He once again demanded of the government to hand over the management of loss making public organizations such as PIA, Railways, Pakistan Steel, PEPCO, etc. to the some honest and professional stakeholders in private sector in order to bring them out of red and save Rs500 billion subsidies given to these organizations annually. The Chairman, KATI, Syed Johar Ali Qandhari in his welcome address pointed out the grim situation of the economy and asked the governor to give priority to the ongoing crisis of utilities shortage such as power load-shedding, water and gas shortage in the country's industrial and commercial hub - Karachi."Government should have to address the economy on first priority as the industries are closing down, exports declining, raw materials are getting expensive frequently and the Pak rupee has been devalued by 40 per cent in the last three years", Qandhari said.

The outgoing Chairman, KATI, Razzak Hashim Paracha said that Pakistan's industry is in really bad shape and the government should have act positively to save the industrial base to avoid mass scale unemployment in the country.

Former Chairman, Mian Zahid Husain pointed out that Karachi's industry has been exempted from load-shedding only due to the efforts by the Governor Sindh. Senior Minister, Sindh, Agha Siraj Durrani, Provincial Minister for Industries, Rauf Siddiqi, Vice President, FPCCI, Khalid Tawab and Senator Abdul Haseeb Khan also spoke on the occasion.

After discussion among coalition partners: Petroleum prices increase reduced by 50 percent

The government has agreed to reduce by 50 percent the recent increase in the petroleum prices in the country.An announcement to this effect was made by Federal Finance Minister, Dr. Abdul Hafeez Shaikh, while briefing media at the Governor House here late Thursday night.He said "after discussion among coalition partners which was held in a very cordial atmosphere, we have decided that the increase in the petroleum prices which was about 10 percent, be reduced by half, that is, five percent".Hafeez Shaikh said that because of this the government would have to bear an additional burden.

He said that in case of any reduction in the petroleum prices in the international market, the benefit of the same would also be transferred to the public.

Finance Minister said that there would also be 25 percent reduction in the allocation of petrol for government officials.Hafeez Shaikh said that a decision has been taken in principle to reduce the recent increase in the petroleum prices by 50 percent.

He said that a formal approval would be sought from the Prime minister and a notification would subsequently be issued.

Sindh Governor, Dr. Ishrat Ul Ebad Khan, said that after the increase in petroleum prices in the wake of enhancement in the price of the commodity at international level, the chief of the Muttahida Qaumi Movement (MQM), Altaf Hussain, talked to President Asif Ali Zardari, and it was considered as to how the impact of the enhancement could be minimised for the masses.

He said that President Zardari sent Finance Minister, Dr. Hafeez Shaikh, and Interior Minister, Rehman Malik, for talks with the MQM team, on how the impact of increase in petroleum prices could be minimised to provide relief to the masses.

Dr. Hafeez Shaikh said that in the past three months there was almost 26 percent increase in petroleum prices at the international level but the Government of Pakistan decided to enhance only 10 percent and had to absorb an impact of Rs five billion per month.

He stated that MQM Chief Altaf Hussain and President Asif Ali Zardari initiated a contact to try and further minimise the impact of increase of petroleum prices on the people.

Federal Finance Minister said “we decided to reduce this increase by 50 percent, that is, from 10 percent to five percent.

MQM leader Dr. Farooq Sattar, who was also present on the occasion, congratulated the people on the announcement regarding reduction in petroleum prices.

He thanked President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani, Finance Minister Dr. Hafeez Shaikh, and the MQM chief Altaf Hussain.

Dr. Farooq Sattar was of the view that attention be paid towards broadening the tax base.

Interior Minister, Rehman Malik, thanked the MQM leadership and Finance Minister, Dr. Abdul Hafeez Shaikh.

He said that Pakistan Peoples Party (PPP) and MQM always think for the betterment of the people and poverty alleviation.

Rehman malik also appealed to the transporters that in view of reduction in petroleum prices they should withdraw their strike call immediately.

MQM leaders Babar Ghauri, Syed Sardar Ahmed and Abbas Haider Rizvi were also present on the occasion.

SECP registered 323 companies in January

The Securities and Exchange Commission of Pakistan (SECP) registered 323 companies in January.

The highest share in new incorporations was of private companies totaling 290. Other companies include 20 single-member companies, 2 public unlisted companies, 6 non-profit associations, 4 foreign companies and one trade organization.

Of 323 companies, the highest incorporation of 53 companies each was witnessed in the services and trading sector, followed by 18 in Hajj and Umrah services, 17 in I.T., 16 in construction, 12 each in textile and communications, 11 in engineering, 10 in pharmaceuticals, 9 each in chemical, education, transport, and food and beverages, 8 each in power generation and fuel and energy, and 7 each in auto and allied, and corporate agricultural farming.

During January the Company Registration Office (CRO), Lahore, registered highest new incorporation of 108 companies followed by the CRO in Islamabad and Karachi registering 93 and 75 companies, respectively. The CROs of Peshawar, Multan and Faisalabad registered 17, 14 and 12 companies each while CROs in Quetta and Sukkur registered 3 and 1 company respectively.

The authorized capital and paid-up capital of 323 companies, is Rs1,774 million and Rs 712.08 million respectively. During the month, 51 companies increased their authorized capital with the aggregate authorized capital increment of Rs8.46 billion and 74 companies raised their paid-up capital with the total paid-up capital increment amounting to Rs13.6 billion.

SECP holds seminar on corporatization and e-Services

The Securities and Exchange Commission of Pakistan (SECP) held a seminar on corporatization and e-Services project of the SECP in Karachi in collaboration with Management Association of Pakistan.

This seminar was organized as part of the SECP initiative to encourage corporatization and create awareness about the eServices project. After e-Services launch in September 2008, such seminars have already been held in various cities of the country including Karachi, Lahore, Islamabad, Faisalabad, Multan, Rawalpindi and Sialkot.

This seminar was attended by participants from various companies as well as corporate consultants.

Mr Ibtesam Moatisim Khan, Director, Management Information System, delivered a presentation on the “e-Services Project of SECP” and also provided solutions to the difficulties faced by the users of eServices. The significance of eServices as an easy and cost-effective mode of filing of documents with SECP and new developments in e-Services were shared.

Mr. Sidney Custodio Pereira, in charge, CRO Karachi, apprised the participants of “corporatization and the role of SECP”.

The participants greatly appreciated the questions and answers session. They complimented the SECP on successful implementation of e-Services.

Famous cricket commentator, Mr Chishty Mujahid, now the Executive Director, MAP, expressed his gratitude to the SECP saying that MAP would continue to arrange such informative and interactive sessions with the SECP.