Non-profit associations: SECP revises conditions on grant of license or renewal

The Securities and Exchange Commission of Pakistan (SECP) has revised conditions for grant of license or its renewal to non-profit associations under Section 42 of the Companies Ordinance, 1984. In this regard, the SECP has issued a circular here on Wednesday.
According to the amended procedure, the SECP has partially modified its Circular No 28/2015 dated 10th August, 2015, pertaining to the conditions and requirements for grant of licence or renewal thereof under section 42 of the Companies Ordinance, 1984, in the following manner:
The SECP's new conditions said that a person shall not be considered as fit and proper if any overdue/past due payment to a financial Institution, irrespective of amount, is appearing in the overdue column of latest CIB report of the person and of the companies, firms, sole proprietorship etc where the person is a chief executive, director (other than nominee director), owner or partner etc.
However, exception can only be provided in the following cases: Firstly, amount overdue is under litigation and the same is also appearing as amount under litigation in CIB report. Secondly, no overdue payment appearing in the overdue column in the subsequent latest CIB report. Moreover, it is pertinent to mention here that Affidavit by Chief Executive and all directors affirming that they are not defaulters of loans, etc. required vide para 4 (vi) (e) of Circular 29/2008 dated 24.12.2008 has now been revised.
The new format of the Affidavit said:
AFFIDAVIT
I, Mr_______________son of _______________resident of _______________ _________________________ and promoter of , do hereby, solemnly affirm and testify that the contents of the application for grant of licence under section 42 of the Companies Ordinance, 1984 to the proposed Association are true and correct to the best of my knowledge and belief and declare that:
(a) I have not been associated with any money laundering or terrorist financing activities and neither have approved receipt of nor received such monies and likewise neither have approved disbursement of nor disbursed such monies in any manner for money laundering or terrorist financing purposes;
(b) I have not been associated with any illegal banking business, deposit taking or financial dealings;
(c) I and the companies, firms, sole proprietorship etc where I am chief executive, director (other than nominee director), owner or partner etc has no overdue payment of any financial institution;
(d) neither I nor companies in which I am a director or major shareholder have defaulted in paying taxes as on the date of application;
(e) I have not been a sponsor, director or chief executive of a defaulting co-operative finance society or finance company;
(f) I have never been convicted of fraud or breach of trust or of an offend involving moral turpitude or removed from services for misconduct;
(g) I have neither been adjudged an insolvent nor have defaulted in making payments to my creditors; and
(h) the funds raised shall be spent for objects of the proposed Foundation and for other lawful purposes.
DEPONENT
Attested by an Oath Commissioner [under his stamp]
...................
(Signature)
Dated: ...................
[To be filed on stamp paper duly verified by an Oath Commissioner]