SECP to finalise company regulations soon

Rules dealing with investments in associated companies being revised.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has concluded consultations with stakeholders on the revised draft of Companies (Investment in Associated Companies and Associated Undertakings) Regulations 2011 and is set to finalise the rules soon.

“This will be given effect through a notification in the official gazette,” the SECP said in an announcement on Friday.

In this connection, the SECP, the corporate regulator, held a second roundtable meeting with the stakeholders in Lahore to finalise the revised draft of companies’ regulations. First roundtable was held in Karachi in October.

The draft has been prepared under provisions of Section 208 of the Companies Ordinance 1984, which empowers the SECP to make regulations governing investments made by companies in associated companies or undertakings.

Since its initial publication in the official gazette in February 2010, the draft has been revised thoroughly in light of feedback from stakeholders.

The SECP said the roundtable meetings had been held to ensure focused feedback and input from external stakeholders. The latest session was attended by representatives of leading business groups and was highly interactive.

While the participants shared their concerns over certain practical impediments regarding investment by companies in associated companies and undertakings, there was general consensus that the regulations were
essential to ensure transparency and curb malpractices in this area.

Published in The Express Tribune, November 5^th,  2011.