Securities and Exchange Commission of Pakistan (SECP) has directed Non-Banking Finance Companies (NBFCs) that information to be provided by a body corporate about promoters and major shareholders of the NBFC and investment company would now also include shareholding details including details of ultimate beneficial owners.
Through an SRO 1196 (I)/2018, the SECP has proposed amendments in the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The SECP has also directed Non-Banking Finance Companies (NBFCs) to revise fit and proper criteria for promoters, sponsors and major shareholders of a body corporate by considering ultimate beneficial owners of such corporate body.
The SECP has specified the revised fit and proper criteria in relation to an NBFC and investment company, promoters and major shareholders of the NBFC and investment company; director of the NBFC and investment company; chief executive of the NBFC and investment company and key executives of the NBFC and investment company in the Schedule-IX of the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The information to be provided by a body corporate as promoters and major shareholders of the NBFC and investment company would now also include shareholding details including details of ultimate beneficial owners.
Under the notification, in case the sponsor and major shareholder is a body corporate, in addition to the relevant/applicable clauses, corporate behaviour of the said body corporate and integrity & track record of the sponsor and ultimate beneficial owners of such corporate body shall be duly considered. The ultimate beneficial owner for the purpose of this clause means natural person or individual who ultimately owns 10% or more ownership or controls the body corporate.
Following is the text of the notification issued here on Saturday: S.R.O. 1196 (I)/2018.- The following draft amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008, proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of the powers conferred by sub-section (2) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984), are hereby published for information of all persons likely to be affected thereby and notice is hereby given that comments, if any, received within fourteen days of the date of this notification will be taken into consideration, namely:-
DRAFT AMENDMENTS
In the aforesaid Regulations, in Schedule IX,-
i) after the heading "Application and Scope" section, in paragraph (5), for the second proviso, the following shall be substituted, namely:-
"Provided further that in case the sponsor and major shareholder is a body corporate, in addition to the relevant/applicable clauses, corporate behavior of the said body corporate and integrity & track record of the sponsor and ultimate beneficial owners of such corporate body shall be duly considered."
Explanation: Ultimate beneficial owners for the purpose of this clause means natural person or individual who ultimately owns 10% or more ownership or control the body corporate"; and
ii) in Annexure A, in clause (b), for paragraph (3), the following shall be substituted, namely:-
"3. Shareholding details including details of ultimate beneficial owners".
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