NBFCs must report investment details of cos: SECP
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for all Non-Banking Finance Companies (NBFCs) to report investors/investment details of companies having investment of Rs 100 million and above, trust, Rs 50 million and above, and individual, Rs 10 million and above, in NBFCs.
The SECP has issued circular number 9 of 2017 here Wednesday about reporting by NBFCs.
In case a company has made investment of Rs 100 million & above in the NBFC, the information has to be submitted by the NBFC to the SECP.
Where investment of trust is Rs 50 million & above, the NBFC would be required to submit information about such investment. In case investment of individual is Rs 10 million & above, the NBFC would report details of such investments made by individuals to the SECP.
According to the circular, this is with reference to circular # 12 of 2009 dated April 28, 2009 wherein all Non-Banking Finance Companies (NBFCs) were required to formulate and put in place, a comprehensive Customer Due Diligence/Know Your Customer Policy duly approved by their board of directors.
In this connection, the Securities and Exchange Commission of Pakistan in exercise of the powers conferred under Section 282B (3) of the Companies Ordinance, 1984 hereby instructs all NBFCs to provide information as per the format given in Annexure-A with respect to those investments made in NBFCs wherein the investment amount is equal to or greater than the following thresholds for different class of investors:
Investor class Investment Amount (Rs. in million)
In case of donations/grants received by NBFCs, the threshold for reporting to the Commission shall be Rs 5 million or above irrespective of the investor class.
For the purpose of this clause, the expression “investments” shall include all sums received by an NBFC including but not limited to amount received for the purchase of shares/units, loans, deposits, etc.
The above reporting requirements shall not be applicable to investments made by financial institutions, public listed companies, licensed entities, asset management companies, mutual funds, insurance companies or government administration/entities.
The aforementioned information shall be submitted on monthly basis within 5 days from the close of every month in MS Excel format at the email address: [email protected]
Compliance report on AML directive for NBFCs included name of NBFC, name of investor, address of investor and contact number, class of investor (individual, corporate, trust, NGO), in case of individual investor, nationality, father/husband name, CNIC/passport number, in case of investor other than individual, country of incorporation/registration, directors/trustees/beneficiaries of trust/principle officer of NGO-charitable institution name(s), CUIN/registration number of NGO/trust, transaction date, amount received (rupees in million), type of investment (purchase of shares/units loan, deposit, etc) branch of NBFC (where transaction occurred) and risk category.
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