Issuing instrument in nature of redeemable capital: SECP notifies list of investors, funds and schemes

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified the list of investors/funds/schemes to whom any instrument in the nature of redeemable capital may be issued by the companies.

According to a notification issued by the SECP here on Tuesday, the SECP has notified the following persons to whom any instrument in the nature of redeemable capital may be issued by a company, subject to the terms and conditions: (i) mutual funds, Voluntary Pension Schemes and private fund being managed by NBFC; (ii) insurer registered under the Insurance Ordinance, 2000; (iii) a Securities Broker; (iv) a Fund and Trust as defined in the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018; (v) a company and body corporate as defined in the Companies Act, 2017; (vi) all individual investors including accredited individual investors, in case of Government Debt Securities, and debt securities whose debt servicing is guaranteed by the government; (vii) accredited individual investors, in case of corporate debt instruments: Provided that the company shall ensure that the instrument is not placed to more than 50 accredited individual investors; information memorandum contains all applicable information/disclosures as prescribed under the Public Offering Regulations, 2017; and instrument is not sold to non-accredited investors in secondary market.

The “accredited individual investor” means an individual investor registered with National Clearing Company of Pakistan Limited and having net assets of Rs5 million or more; and “Government Debt Securities” means a debt security such as Treasury Bill (T-Bill), Pakistan Investment Bond (PIB), Government of Pakistan (GoP) Ijarah Sukuk and any other debt instrument issued by the federal government, provisional government, Local Government/ Authority, and any other statutory body, the SECP added.

Copyright Business Recorder, 2021