Company investments: SECP approves regulations

Regulations to come into effect after a notification in the official gazette.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said that it has approved Companies (Investment in Associated Companies or Associated Undertakings) Regulations 2012, which will come into effect after a notification in the official gazette. The regulations prescribe disclosure requirements and specify conditions and restrictions on the nature, period, amount of investment and terms and conditions attached to investment by a company in its associated companies or undertakings. According to SECP, the regulations will ensure transparency in transactions involving investments made by companies in their associated companies or undertakings through adequate and standardised disclosure to the members. Since its initial publication in the official gazette in February 2010 to seek public comments, the draft of the regulations has been revised thoroughly in the light of stakeholders’ feedback.

Published in The Express Tribune, January 14^th, 2012.