SECP formulates regulations for charities, NGOs

RECORDER REPORT

ISLAMABAD: For the first times the Securities and Exchange Commission of Pakistan (SECP) has formulated detailed regulations for registration, documentation and monitoring of associations with charitable and Not for Profit objectives as well as such international NGOs operating in Pakistan.

The SECP has issued Associations with Charitable and Not for Profit Objects Regulations, 2018 here on Monday in this regard.

The Commission, while considering the application for grant of license under regulations, may make such enquiry and obtain such other information or clarification as it may deem necessary.

 The Commission may, on being satisfied that the promoters, proposed  directors and proposed chief executive officer of an association comply with the fit and proper criteria specified in regulation 10, that all other requirements for the grant of a license have been fulfilled, and it shall be in the public interest so to do, may grant a license under section 42 of the Companies Act to the association in the manner as provided in NFP Annexure 1, subject to such conditions as it may deem fit to impose. 

 he license shall be issued for a period of three (3) years unless it is revoked earlier by the Commission:  Provided that the companies which were granted license for a period of five (5) years prior to notification of these regulations shall apply for renewal of license after expiry of term specified in their existing license.   

 In case of refusal to grant the license, the Commission shall issue an order of refusal. 

Provided that the Commission before issuing refusal order shall provide an opportunity of being heard to the applicant.  

 The association which has been granted a license by the Commission under regulation 5, shall apply for its incorporation as a public limited company under the provisions of the Act within sixty (60) days of the date of issuance of such license.  Provided that the Commission may, under special circumstances, on an application made by the promoters, extend such time as deemed appropriate in the circumstances. 

 The license granted to an association under section 42 may be revoked by the  Commission if the association does not apply for its incorporation as a company under the provisions of the Act within the time period as provided in sub-regulation (1) or such time as extended by the Commission:  Provided that before a license is so revoked, the Commission shall give an opportunity of being heard to the association against the revocation. 

An association desirous of obtaining a license under section 42 of the Act shall make an application to the Commission in the manner as specified in NFP Form 1 along with all supporting documents as specified therein through an authorized promoter or authorized intermediary.