SECP approves to soften various regulatory conditions

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday gave go-ahead to soften various regulatory conditions for companies, ARY News reported.

This was decided in a meeting of the SECP chaired by Chairman SECP Policy Board Khalid Mirza.

The SECP has removed the condition of getting enlisted of the companies interested in buying back shares.

It has waved-off the condition of maintaining the paid-up capital of Rs200 million after the company’s buying back.

The permission to trade treasury shares in the market has also been given by the SECP.

The fee of mutual funds east under management has been reduced to 2 bps from 8 bps.

The condition of maintaining free reserve of paid-up capital after issuance of bonus shares has been waved off.

In November 2018, the SECP had said it had registered 1,395 new companies in October 2018, demonstrating a development of 63% as compared to the corresponding month of financial year 2017. Also, over 50% companies were registered within four hours after getting the registration application.

According to the data, the overall number of companies registered with SECP had increased to 92,109.

It was also observed that, the enormous augmentation in the registration was the outcome of SEPP’s different reforms & measures, including preamble of basic combined process for name reservation and incorporation, lessening of fee, support of incorporation by facilitation section of CROs etc.