AGL 40.10 Increased By ▲ 0.10 (0.25%)
AIRLINK 130.75 Increased By ▲ 1.22 (0.94%)
BOP 6.90 Increased By ▲ 0.22 (3.29%)
CNERGY 4.63 No Change ▼ 0.00 (0%)
DCL 8.90 Decreased By ▼ -0.04 (-0.45%)
DFML 43.48 Increased By ▲ 1.79 (4.29%)
DGKC 83.85 Increased By ▲ 0.08 (0.1%)
FCCL 33.00 Increased By ▲ 0.23 (0.7%)
FFBL 78.02 Increased By ▲ 2.55 (3.38%)
FFL 12.20 Increased By ▲ 0.73 (6.36%)
HUBC 110.56 Increased By ▲ 0.01 (0.01%)
HUMNL 14.49 Decreased By ▼ -0.07 (-0.48%)
KEL 5.59 Increased By ▲ 0.20 (3.71%)
KOSM 8.44 Increased By ▲ 0.04 (0.48%)
MLCF 39.45 Decreased By ▼ -0.34 (-0.85%)
NBP 62.60 Increased By ▲ 2.31 (3.83%)
OGDC 199.39 Decreased By ▼ -0.27 (-0.14%)
PAEL 26.60 Decreased By ▼ -0.05 (-0.19%)
PIBTL 7.78 Increased By ▲ 0.12 (1.57%)
PPL 159.95 Increased By ▲ 2.03 (1.29%)
PRL 26.67 Decreased By ▼ -0.06 (-0.22%)
PTC 18.65 Increased By ▲ 0.19 (1.03%)
SEARL 83.18 Increased By ▲ 0.74 (0.9%)
TELE 8.22 Decreased By ▼ -0.09 (-1.08%)
TOMCL 34.35 Decreased By ▼ -0.16 (-0.46%)
TPLP 9.00 Decreased By ▼ -0.06 (-0.66%)
TREET 16.96 Decreased By ▼ -0.51 (-2.92%)
TRG 60.31 Decreased By ▼ -1.01 (-1.65%)
UNITY 27.90 Increased By ▲ 0.47 (1.71%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,605 Increased By 198.6 (1.91%)
BR30 31,978 Increased By 264.4 (0.83%)
KSE100 99,039 Increased By 1710.9 (1.76%)
KSE30 30,861 Increased By 669 (2.22%)

The Securities and Exchange Commission of Pakistan (SECP) will register the Collateral Management Companies (CMCs) - agriculture promotion companies - to engage in the activities of warehousing, ie, provision of quality storage and preservation services for a range of agricultural commodities.
According to the Collateral Management Companies Regulations, 2019 issued by the SECP Saturday, the CMC means an agriculture promotion company registered with the Commission under these regulations having principal line of business as managing produce as collateral or engaged in any other activity connected with or related to any produce or any other activity as may be notified by the Commission.
The scope of activities of a CMC revealed that the CMC may engage in the activities of warehousing, ie, provision of quality storage and preservation services for a range of agricultural commodities. Provided that a CMC shall not own a warehouse without prior written approval of the Commission, subject to such terms and conditions as it may deem fit.
The CMC may engage in the activities of issuance of warehouse receipts for agricultural commodity financing; devise a mechanism for pledging, in favour of eligible pledgee, the depositor's produce held with the warehouse operator against which electronic warehouse receipt has been issued; stock audit, evaluation and verification services; accreditation of warehouses and any other activity as approved by the Commission.
The regulations have specified that a person desirous of forming a CMC shall make an application for permission of the Commission subject to the laid down terms and conditions. The principal line of business of the applicant will be related to managing produce as collateral or engaged in any activity connected with or related to produce or other related activities.
The applicant undertakes to invest a minimum paid-up capital of Rs 200 million or such higher amount as may be specified by the Commission from time to time.
The applicant undertakes to secure necessary infrastructure including but not limited to adequate office space, equipment, electronic warehouse receipt system and control procedures and such other condition as may be notified by the Commission.
The Commission may permit by an order in writing to establish a CMC if it is satisfied that the person seeking permission to form a CMC has provided the information as required.
The permission granted, shall be valid for a period of six months unless extended for a further period as approved by the Commission under special circumstances, on the application of the promoters made before the expiry of initial six months. During the validity of this permission, the promoters shall get the company incorporated as a public limited company and submit an application to the Commission for grant of registration as a CMC, after fulfilling all the conditions specified in these regulations, the SECP added.

Copyright Business Recorder, 2019

Comments

Comments are closed.