SECP Update

• SRO 793(I)/2009 – Amendment to Sixth Schedule of Companies Ordinance, after Item XII, Item XIII shall state a non refundable fee of Rs. 200,000 for an application to the Commission seeking approval to issue securities outside of Pakistan and item XIV shall state a non refundable fee of Rs. 100,000 for an application to the Commission seeking approval to offer employees a stock option scheme.
• Circular No 32/2009 – Reinsurance/Retakaful Treaty Arrangements 2010. All the insurers/ takaful operators are advised to submit the prescribed features/details of their respective reinsurance/retakaful treaty arrangements, as per the requirements contained in Rule 15 (1) of the Securities and Exchange Commission (Insurance) Rules, 2002 (SEC Rules), by the date specified in Section 41(2) of the Insurance Ordinance, 2000 (Ordinance).
• Circular No 33/2009 – Guidance on the sharing of costs of Insurance Ombudsman’s Secretariat by Insurance/Takaful Companies. In this circular SECP has determined the formula for the purpose of sharing the cost of the Insurance Ombudsman’s Secretariat. Circular No 34 – All brokers registered with SECP under the Brokers and Agents Registration Rules 2001 and/or Commodity Exchange and Futures Contracts Rules 2005 to nominate a “Compliance Officer” from amongst its employees who shall be responsible to ensure effective implementation and compliance with regulatory framework.
• Circular No 35 – Outlines mandatory certification requirements for sales agents of Assets Management Companies (AMCs)/ Pension Fund Manager (PFMs).
• SECP has approved the Margin Financing (MF) System as proposed by the Consultative Group on Capital Market
  

SBP Update

• FE Circular No 6 – To facilitate home remittances by overseas Pakistanis, the Government will reimburse marketing expenses associated with the promotion of remittance schemes. The reimbursement amount will depend on the amount of remittances mobilized by an overseas entity.
• BSD Circular No 10 – Amendments in Prudential Regulations – Provisioning for Loans and Advances MFD Circular Letter No 1 – Amendment in Prudential Regulation No 27 for submission of quarterly returns through Data Acquisition Gateway Portal Banking Companies (Amendment) Bill 2009 – aims at giving sweeping enforcement powers to the SBP for protecting the interests of the depositors as well as saving banking companies from possible risks.
• The proposed Anti Money Laundering Bill 2009 seeks the inclusion of financing of terrorism in the list of offences in the revised legislation to be enacted by Parliament.
• New payment mechanism which allows five commercial banks to transfer remittances into the beneficiaries account the same day.
• SMEFD Circular No 15 – Revision of Financing Rates under the Export Finance Scheme. Rate of refinance for the month of November and onwards will be 7%.
• SMEFD Circular No 16 – Long Term Financing Facility/Re-fixation of rates of service charges of Participating Financial Institutions (PFIs)
• SMEFD Circular No 17 – Outlines the refinancing facility for modernization of SMEs – Rice Husking Mills
• SMEFD Circular No 18 – Agri Loan Refinancing and Guarantee Scheme for war affected areas of NWPF and FATA. SBP shall share 50% of the bonafied losses of banks against the loans funded under the scheme.
• SMEFD Circular No 19 - Instructions contained in SMEFD Circular No. 03 dated 30-10-2009 have been withdrawn with immediate effect. Now banks are free to extend financing facilities to the private sector for procurement of wheat keeping in view their lending policies, business consideration, risk profile of the borrowers and compliance with SBP regulations.