SOHAIL SARFRAZ

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed all Modaraba companies to provide information about investments made in different investor classes, including corporate (investment amount Rs 100 million or above), trust (investment amount Rs 50 million or above) and individual (investment amount Rs 10 million or above).

The SECP has issued direction number 1 of 2017 here on Monday on the reporting by Modaraba companies/ Modarabas.

The investment amount for corporate entities has been set at Rs 100 million or above; investment amount Rs 50 million or above has been set for trust; and investment amount Rs 10 million or above has been fixed for individual category, the SECP said.

According to the SECP, this is with reference to circular # 29 of 2009 dated September 9, 2009 wherein all Modaraba companies were required to formulate and put in place, comprehensive Customer Due Diligence/Know Your Customer Policy duly approved by their respective board of directors.

In this connection, in exercise of the powers conferred under section 18A of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 all the Modaraba companies are hereby directed to provide information as per the format given in Annexure-A to the Commission with respect to all those investments made in Modaraba companies /Modarabas 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)


===================================


Corporate                    100.00


Trust                         50.00


Individual                    10.00


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In case of donations/grants received by Modaraba companies/Modarabas, the threshold for reporting to the Commission shall be Rs 5.00 million or above irrespective of the investor class.

(For the purpose of this clause, the expression “investments” shall include all sums received by Modaraba companies/Modarabas including but not limited to amount received for the purchase of certificates/shares, loans, deposits, etc)

The said reporting requirements shall not be applicable on 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]

The compliance report on AML directive for Modaraba companies/Modarabas revealed name of Modaraba companies/Modaraba, name of investor, address of investor and contact number, and 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/trust/ principle officer of NGO-charitable institution name (s), CUIN/registration number of NGO/Trust, transaction date, amount received (Rs in million), type of investment (purchase of shares/units, loan, deposit etc.) and data included branch of Modaraba (where transaction occurred) and risk category.