The Securities and Exchange Commission of Pakistan (SECP) has notified the draft Investor Education and Awareness Fund Rules, 2017, and the Unclaimed Shares, Modaraba Certificates, Dividend and Other Instruments Regulations, 2017, to obtain public opinion. These rules and regulations have also been placed on the SECP’s website.
The rules provide the legal framework for management and control of investor education fund. As per the rules, the investor education fund will be managed and controlled by the SECP in a separate bank account and necessary books of accounts will be maintained for proper management of the fund.
The SECP will prepare the annual plan of investor awareness activities to be funded through the said fund. An advisory committee consisting of members from stock exchange, Central Depository Company, market intermediaries, academia and representatives from the corporate sector will also be constituted. The regulations provide the regulatory framework regarding the deposit of unclaimed shares, dividends and other instruments, their process of sale, claiming of refunds and filling of annual returns. The establishment of the Investor Education and Awareness Fund will ensure sustainability in execution of the SECP’s expanded investor advocacy, education and outreach activities.
The rules and regulations have been notified. The public is requested to send their comments by email at [email protected] by June 29, 2017.