Brief on the Employees Contributory Funds

Brief on the Employees Contributory Funds

The Securities and Exchange Commission of Pakistan (SECP) vide S.R.O 731(I)/2018 dated 6 June 2018 has prescribed “Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018, herein after referred as (“the regulations”), which has repealed the above mentioned rules.

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Amyn Malik

Partner

KPMG in Pakistan

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Investment

The investment in listed securities were covered previously by Employees’ Provident Fund (Investment in Listed Securities) Rules, 2016, S.R.O. 261(I)/2002 dated 10 May 2002 and S.R.O 537(I)/2004.

The Securities and Exchange Commission of Pakistan (SECP) vide S.R.O 731(I)/2018 dated 6 June 2018 has prescribed “Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018, herein after referred as (“the regulations”), which has repealed the above mentioned rules.

 

The major changes brought through these regulations include:

· Revision of threshold of investments;

· Engagement of investment advisor holding a valid license from the SECP, in case investment in listed equity securities other than equity collective investment scheme exceeds Rs. 50 million; and

· Reporting requirements of the contributory fund. The contributory funds have been required to bring the investments within the prescribed limits in one year.

We have summarized the changes made through these regulations in this brief for the benefit of our clients. We however, recommend that while considering application to a particular case, reference should be made to the specific wordings of the regulations.

 

These Regulations came into force on 6 June 2018.

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

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