Applications for subscription of securities: SECP proposes procedure for scheduled banks

The Securities and Exchange Commission of Pakistan (SECP) has proposed procedure for scheduled banks to accept applications for subscription of securities either in electronic form through an e-IPO System or through a manual process. The SECP has issued draft of bankers to an Issue of Securities Rules, 2015 here on Thursday.
Under the draft rules, "Banker to an Issue" means a scheduled bank licensed under these rules and capable to perform all or any of the following functions: Accept applications for subscription of securities either in electronic form through an e-IPO System or through a manual process; accept the subscription money of the applications mentioned through the e-IPO System, cheque or through any other mode as disclosed in the relevant prospectus; refund of subscription money and any other related function as may be specified by the Commission from time to time.
It said that no person shall act as or perform the functions of the Banker to an Issue unless such person is licensed by the Commission under these Rules. Any person providing services as Banker to an Issue at the time of coming into force of these Rules shall obtain license under these Rules within a period of six months from the date of notification of these Rules in the Official Gazette.
Responsibilities of the Banker to an Issue: The Banker to an Issue shall maintain high standards of integrity and fairness in discharging its functions and dealings with its Clients and other Banker to an Issue in the conduct of its business; render high standards of services and fulfill its obligations in a fair efficient transparent and ethical manner and exercise due care and diligence in performing its functions and discharging all its obligations and responsibilities.
The Banker to an Issue shall comply with all the applicable directives and orders issued by the Commission; execute a written agreement with its Clients prior to performing services as a Banker to an Issue containing at least the terms and conditions as specified in Schedule-II and take in time and adequate steps for redressal of grievances of the investors and keep the Commission and the securities exchange informed on daily basis about the number, nature and other particulars of the complaints received.
The Banker to an Issue shall have such internal control procedures and financial and operational capabilities which can be reasonably expected to protect its operations and interest of its Clients, the securities subscribers and securities holders; responsible for the acts or omissions of its employees and representatives in respect to the conduct of its business; must inculcate a culture of compliance of the regulatory requirements through ongoing education and training of its employees and ensure that information related to the subscription of the offered securities is provided to the issuer or offeror, as the case may be, within the time period and in the form and manner as disclosed in the prospectus or as required under the agreement executed with the them.
The Banker to an Issue shall ensure that refund of subscription money to the investors is made in a prompt and timely manner without any unreasonable delays; any change in license status, any penal action against it or any material change in its financial and operating position which may have adverse effect on the interest of the issuer, the offeror or investors is promptly notified to the issuer, the offeror, the Commission and the securities exchange and immediately inform the Commission regarding any penal action, legal proceedings initiated against it by the State Bank of Pakistan.
The Banker to an Issue shall ensure that all information provided to the Commission is true, accurate and no material fact is omitted or suppressed and comply with the directions, circulars guidelines issued by the Commission in respect of or having a bearing on the business as banker to an issue. The Banker to an Issue shall not accept applications for subscription of securities and subscription money thereof after closing of the subscription period, it added.