There is a strong need for strengthening of regulatory environment in Pakistan for the development of a modern corporate sector, Chairman, Securities and Exchange Commission of Pakistan (SECP), Muhammad Ali said while addressing a press briefing at the SECP head office on Thursday.   Briefing the journalists, the SECP chairman said that it has been decided to increase the SECP’s capacity of enforcement by 200%. He said that on-site inspection of all licensed entities including brokers would be conducted annually and offsite monitoring on a quarterly basis. This will increase transparency, investor confidence and foreign portfolio investment. In the past the SECP took action against defaulters by filing criminal complaints and sometimes referring those cases to the NAB. However, in order to ensure compliance with all the relevant statutory requirements, it is necessary that offsite monitoring and onsite inspections should be regularly conducted for all licenses/licensed...

The Securities and Exchange Commission of Pakistan has proposed certain amendments to the 2003 Companies (Registration Offices) Regulations,  whereby a substantial reduction in the additional fees for late submission of statutory returns, annual accounts and other documents filed by the companies has been proposed.  As per current regulations, on late filing of documents, heavy additional fee is being charged which might be a reason for non-compliance and low rate of filing of overdue statutory returns by companies. Through this amendment, SECP has proposed to reduce the burden of additional fee to be paid by companies. This is likely to increase compliance rate. Additional fees which are required to be paid as one time additional fee for a delay of not more than 15 days, two times for a delay of not more than 45 days and three times for delay of more than 45 days, shall now be paid as one fourth times for a delay not more than one month, one half times for a delay no...

In November the SECP’s Corporatization and Compliance Department took 82 enforcement actions against various corporate entities and penalties amounting to thousands of rupees were imposed on five of them.  The department issued 45 show cause notices and conducted 31 hearings for various violations of the provisions of the 1984 Companies Ordinance, ranging from late filing of annual accounts, non-filing of accounts to non-holding of AGMs and faulty audit of cost accounts. Six orders were issued against five companies: Pakistan Electrical & Electronics Merchant Association (Sections 184, 242 read with 476),  Fahim Nanji & De Souza (Sections 92, 93, 172  read with 476), Chemi Multfabrics Limited (Sections 142, 184 read with 476), United Brands Limited (Section 184 read with 476) and Grand Leisure Corporation Limited (Section 184 read with Section 476).  In addition, the department received seven complaints during the month and four of them were ...

By Abdul  Qadir Qureshi The JCR-VIS Credit Rating Co. Ltd. (JCR-VIS), approved by the Securities & Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP),   has reaffirmed the Insurer Financial Strength (IFS) rating of Pakistan Reinsurance Company Limited (PRCL) at "AA" (Double A) for the year 2012. The outlook on the rating is stable. The JCR-VIS rating agency, a joint venture between Japan Credit Rating Agency, Ltd. (JCR) - Japan's premier rating agency, Vital Information Services (Pvt.) Limited (VIS) is acclaimed as Pakistan’s only independent financial research organization. The rating derives strength from the significant holding of Government of Pakistan in the company. Moreover, given that all insurance companies of Pakistan are mandated to offer 35% of their surplus business to PRCL in the form of cession, the company is expected to maintain a sizeable market share in premium ceded by the insurance industry. The JCR-VIS h...

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has amended the Statement in Lieu of Prospectus which is contained in Part III of Second Schedule of the Companies Ordinance, 1984, required to be filed with the registrar by a private company converting into a public company. SRO No. 677(I)/2011, of July 8, 2011 has been placed on the SECP website www.secp.gov.pk Previously, the Statement in Lieu of Prospectus format required to be filed by public unlisted companies for obtaining Commencement of Business Certificate was substituted with new one, vide SRO No. 289 (I)/ 2011 of April, 4, 2011. On the same lines, amendments have now been made to the Statement in Lieu of Prospectus format required to be filed by a private company converting into a public company. Amended format has been designed compatible with SECP’s eServices regime and suitable for online submission environment. Relevant information regarding the company, i.e., Corporate Universal Identification Num...

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has ordered suspension of trading in the shares of listed companies that are in continual violation/non-compliance of securities market laws, initially for a period of 60 days or till further orders. The SECP taking cognizance of the fact that such companies not only pose serious threat to the development of a robust capital market but also inhibit investors’ confidence due to lack of transparency, in consultation with the stock exchanges, had earlier initiated a comprehensive exercise for reviewing the status of these listed defunct/non-compliant companies. It was established that such companies while giving the impression of a broad-based Pakistani capital market do not fairly reflect depth in the market and distort functioning of the stock exchanges as true barometers of the economy. While capital markets play a crucial role in efficiently channelling financial resources to productive uses, such non-...

In order to facilitate the corporate sector, the Securities and Exchange Commission of Pakistan has re-launched the Companies Regularization Scheme (CRS) and Companies Easy Exit Scheme (CEES) simultaneously. Both schemes shall remain operative for a period of three months, from July I to September 30, 2010. The objective of these initiatives is to provide regularization as well as exit facilities to the defaulter companies at the same time. Now these companies can either get their defaults of non-filing of documents regularized under CRS or avail the exit facility under CEES. The CRS provides defaulter companies an opportunity to file their overdue statutory returns and annual accounts. It may be mentioned that normally the defaulting companies have to file their overdue returns with usual filing fee plus three time additional fee and also face penal action for late filing of documents. This Amnesty Scheme shall, however, provide the companies to pay less fee and also absolve them of...

Securities & Exchange Commission of Pakistan (SECP), in exercise of its powers conferred under sections 282 E & F of the Companies Ordinance, 1984 has superseded the entire Board of Directors of Innovative Investment Bank Limited (IIBL) including its Chairman and appointed Mr. Khalid Sherwani as Administrator with effect from January 28, 2010. Mr. Sherwani as Administrator of IIBL shall exercise all the powers vested in Chief Executive and the Board of Directors to manage the affairs of IIBL. Mr. Sherwani is a former President of Allied Bank Limited (ABL), United Bank Limited (UBL) and Managing Director of House Building Finance Corporation. Mr. Sherwani, having 39 years of diversified experience at his credit, is ranked amongst the country’s top bankers for his independent professional approach. His major achievement include the recapitalization, functional restructuring and turn around of UBL and ABL. He is expected to put in all reasonable efforts for restructuring of IIBL ...

Karachi Stock Exchange (KSE) has approved the formal listing and quotation of share of Ghani Gas Ltd (GGL) on the completion of all listing formalities. According to KSE, the trading in the GGL shares will start from January 5, 2010.

Bosicor Pakistan Ltd (BPL) has changed its name to Byco Petroleum Pakistan Ltd from January 1, 2010. According to information reaching KSE, the address of the company has also been changed to Harbour Front, 9th Floor, Dolmen City HC-3, Block 4, Marine Drive, Clifton. It may be noted that Byco Industries Incorporated (BII) has acquired 34.81 percent shares (216.383 million shares of BPL from Bosicor Corporation Ltd (BCL) in return for issuance of shares of BII or control of BPL.

The extension in time allowed by Securities and Exchange Commission of Pakistan (SECP) for filing of annual returns upto Friday December 4, 2009, is also applicable on filing of annual accounts. SECP had already extended the last date for filing of annual returns for further four days, i.e., upto December 4, 2009 on account of the Eid holidays. It is clarified that the extension in time is also applicable on filing of annual accounts. All public listed, public unlisted, associations not for profit, and private companies (having a paid up capital of Rs. 7.5 million or more), which have held their Annual General Meeting on October 31, 2009, are required to file their annual accounts within 30 days, by November 30, 2009. Besides, foreign companies are also required to file annual accounts relating to their business operations in Pakistan as well as global accounts. Annual accounts from companies will be accepted during the extended period without additional payment of fee for late filing...

Karachi Stock Exchange has suspended trading in the shares of Zeal Pak Cement Factory with immediate affect in accordance with the orders of Sindh High Court. According to a KSE notice here yesterday, the Honourable Court, in a suit, has imposed restriction on the transfer, pledging withdrawal of shares of Zeal Pak Cement in CDC with effect from July 12, 2009.

KARACHI: Affirming its stand as an environmentally responsible Exploration and Production (E&P) organization, Pakistan Petroleum Limited (PPL) won the 6th Annual Environment Excellence Award (AEEA) 2009. This is the third time that PPL has bagged this award, the first being in 2006 followed by 2008. PPL’s Managing Director and Chief Executive Officer Khalid Rahman received the award from the Chief Guest and Federal Minister for Environment Hameedullah Jan Afridi at a well-attended ceremony held on July 9 at Karachi Sheraton Hotel and Towers that drew distinguished guests, including government officials, corporate, environmentalists, experts, civil society and media. Guest of Honour and Provincial Minister for Environment Askari Taqvi pointed out recent initiatives taken by the Sindh Environmental Protection Agency for effective implementation of the National Environmental Quality Standards. Chief Guest Hameeduallah Jan Afridi encouraged the private sector to support government eff...

The Board of Directors of Al Meezan Investments announced distribution of dividends for its open end Meezan Islamic Income Fund (MIIF), Meezan Capital Protected Fund- I (MCPF-I) and Meezan Cash Fund (MCF) for the year ended June 30, 2009. According to the press release, the Board declared a final distribution for MIIF of Rs 1.75 per unit, in addition to interim dividends of Rs 3.02 per unit, making a total payout of Rs 4.77 per unit. For MCF it is Rs 0.15 per unit (0.3 percent on the face value of Rs 50 per unit) and the dividend distribution for MCPF-I is Rs 0.35 per unit (0.7 percent on the opening NAV of Rs 49.80 per unit).

JS Investments Limited, JSIL has announced the financial results for selected Funds under its management for the fiscal year ended June 30, 2009. The Board of Directors in a meeting held on July 07, 2009, reviewed the performance of the Income Funds and Capital Protected Funds under the management of JSIL and approved the final pay outs for the Unit Holders for the fiscal year. As per the results, JS Income Fund had a payout of Rs. 4.50 per unit, which is in addition to the already distributed interim dividends of Rs. 7.55 per unit, and equals to a total payout of 11.9248% of NAV, while JS Aggressive Income Fund had a payout per unit of Rs. 2.00, which is in addition to the interim distribution already paid at Rs. 4.25 per unit, which was a payout on opening NAV of 6.2357%.

KARACHI: Pakistan Petroleum Limited (PPL) bagged the Best Corporate Report Award (BCRA) for its Annual Report 2008. The company stood first among five short listed organizations in the fuel and energy sector, scaling up three positions over last year when its report was ranked fourth in the sector. This is the third BCRA that the company has won, the first being in 2005 followed by one in 2007. The results were announced on June 15 at a ceremony organized jointly by the Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Cost and Management Accountants of Pakistan (ICMAP) that drew a large number of representatives from the accountancy profession, corporate sector and the media. Managing Director and Chief Executive Officer Khalid Rahman received the award from Governor State Bank of Pakistan Syed Salim Raza, who was the chief guest on the occasion. The award affirms PPL’s efforts to adhere to best corporate governance practices and maintain sound and transparent acc...

The Karachi Stock Exchange issued suspension orders of trading in shares of four companies on Friday, making a tally of 12 companies disallowed from trading so far this year. The period of suspension was extended to a further 60 days of the following companies: Indus Polyester Company; Tariq Cotton Mills, Pak Fibre Industries and Long Term Venture Capital Modaraba. A dozen companies were suspended last year and seven the year before. From August 1988, since the process began, the bourse has put trading of 74 companies on the hold until they ‘remove the cause of suspension.’ Some investors complain that the exit route for delinquent companies runs the familiar course: placing them on the defaulters’ counter, suspension and finally delisting. The defaulters’ counter had been set up years ago so as to put to shame companies that do not comply with regulations, pertaining mainly to small investors’ rights. The action has met with success in varying degrees. The KSE has continued to justif...

The Hub Power Company Limited (HUBCO) has posted Rs 2.965 billion net profit in the first nine months of current fiscal compared to Rs 1.991 billion in the same period last fiscal, reflecting around 49 percent growth. The company’s earnings per share (EPS) rose to Rs 2.56 during period under review over Rs 1.72 in the corresponding period last year. Analysts attributed the increase in the profit to higher electricity generation in the calendar year 2008 resulting in a generation bonus. Besides production bonus, interest income on overdue amount from WAPDA is likely to boost bottom-line of the company. Turnover totaled at Rs 67.335 billion in July-March 2008-09 against Rs 42.751 billion in the same period last fiscal. Operating costs also jumped to Rs 62.533 billion in the said period over Rs 39.219 billion in the previous year. HUBCO operates an oil-fired power station with a net capacity of 1,200 MW located in Hub River estuary in Balochistan and also carries out the business of power...

Lucky Cement registered 52 percent growth in its net profit during the first nine months of current financial year on the back of high sales and export. Company’ s net profit increased to Rs 3.072 billion during the period under review against Rs 2.014 billion in the same period of previous year, financial results of the company sent to Karachi Stock Exchange (KSE) indicated on Monday. Earnings per share (eps) rose to Rs 9.50 in July-March of 2008-09 from Rs 7.65 per share in the corresponding period of last year. Profit before tax also jumped to Rs 3.488 billion compared to Rs 1.629 billion in the previous year. During the nine months under review, company achieved a significant growth of Rs 61 percent in net sales revenue as compared to same period of previous year. The ratio of sales revenue from exports was 58.8 percent whereas the local sales accounted fro 41.2 percent in this period. The overall sales volume of the company stood at 4.154 million tons during the period under revie...

KARACHI: Oil and Gas Development Authority (OGDC) has posted a net profit of Rs 44.408 billion in nine months of 2008-09 and announced 20 percent final cash dividend for the shareholders. According to financial results of the company despatched to Karachi Stock Exchange here Thursday, the pre-tax profit soared to Rs 66.272 billion for the period ending March 2009. The earning per share (EPS) of the company also jumped to Rs 10.33 during the period under review, compared to Rs 8.44 in the same period last year. OGDC’s net sales have crossed Rs 100 billion mark during the nine months.