The SECP has issued S.R.O. 855(I)/2021 to introduce draft amendments to the Public Offering (Regulated Securities Activities Licensing) Regulations, 2017.
Any development financial institution and scheduled bank shall obtain approval of the Securities and Exchange Commission of Pakistan (SECP) prior to commencing the business as underwriter, a banker to an issue, consultant to the issue and debt securities trustee.
Other conditions revealed that the said development financial institution and scheduled bank shall submit a board resolution, authorizing it to undertake the business as an underwriter, a banker to an issue, consultant to the issue and debt securities trustee.
The development financial institution to act as an underwriter and scheduled bank to act as a banker to an issue shall pay a non-refundable fee of Rs. 500,000, and to act as Consultant to an issue shall pay a non-refundable fee of Rs. 200,000/-.
The scheduled bank to act as underwriter shall pay a non-refundable fee of Rs. 250,000/- and to act as Consultant to an issue shall pay a non-refundable fee of Rs. 200,000/-”;
The SECP has also introduced a new condition that a securities brokers having valid license to act as consultant to the issue or underwriter shall apply through the Securities Exchange, to the Commission in Form C of these Regulations or Form C of Securities Brokers (Licensing & Operations) Regulations, 2016, along with an undertaking stating that it is in compliance with all regulatory requirements.
As per another new condtion of the SECP, the scheduled bank, duly rated by a credit rating company licensed by the Commission, desirous to act as Banker to an Issue in a public offering, shall be completely exempt from licensing/permission requirement under these Regulations subject to following conditions;
- The Scheduled Bank shall be required to submit a consent letter through the Issuer or respective Consultant to the Issue to act as Banker to an Issue in Public offering of (Name of Company) to the Commission.
- Scheduled Bank shall, within one month of expiry of its existing license/permission, deposit annual fee of pay Rs. 250,000 to the Commission. In case a Scheduled Bank fails to deposit the annual fee within stipulated time period, the exemptions will be withdrawn and accordingly, the scheduled bank shall be required to obtain again permission under regulations, SECP added.