The Securities and Exchange Commission of Pakistan (SECP) has relaxed some conditions for the companies having foreign subscribers/officers who are Afghan nationals or of Afghan origin.
Under the revised Companies (Incorporation) Regulations, 2017 issued by the SECP, the commission has abolished the condition of security clearance from the Ministry of Interior (MoI) of companies having foreign subscribers/officers who are Afghan nationals or of Afghan origin.
Previously, the companies having foreign subscribers/officers who are Afghan or Indian nationals or of Afghan or Indian origin were incorporated by the SECP after receipt of security clearance.
The SECP’s new regulations revealed that the Commission shall obtain security clearance from the MoI in the following cases and manner:
- Companies having foreign (other than Indian national or origin) subscribers/officers will be incorporated on the basis of an undertaking of each foreign subscriber/officer and case shall be forwarded for security clearance. Provided that in case the name of the subscriber/officer is not security cleared by MoI, the subscriber/officer and the company, shall take immediate steps for replacement and shall transfer shares if any, held by the subscriber.
- Companies having foreign subscribers/officers who are Indian national or of Indian origin will be incorporated after receipt of security clearance; (iii) security services provider companies will be incorporated after receipt of security clearance from the MoI.
The manner of security clearance shall be subject to any change in the security policy of the government from time to time, the SECP said.
In case the subscriber is a foreign company or a foreign body corporate, the SECP’s registrar shall require additional information including but not limited to, the profile of the foreign company or foreign body corporate, detail of its directors, their nationality, and country of origin, copy of its charter, statute or memorandum and articles, etc. the SECP added.