SECP to finalize revisions to Companies Regulations soon

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) held second roundtable meeting with external stakeholders in Lahore to finalize the revised draft of the Companies (Investment in Associated Companies and Associated Undertakings) Regulations, 2011. The first roundtable was held in Karachi in October.

The draft has been prepared under the provisions of Section 208 of the 1984 Companies Ordinance, which empowers the SECP to make regulations governing investments made by companies in associated companies or associated undertakings.

Since its initial publication in the official gazette in February 2010, the draft has been revised thoroughly in light of stakeholders’ feedback. The roundtable meetings have been held to ensure focused feedback and input from external stakeholders. The session was attended by representatives of leading business groups and was highly interactive.

While the participant shared their concerns on certain practical impediments regarding investment by companies in their associated companies and undertaking, there was general consensus that the regulations are essential to ensure transparency and curb malpractices in this area. Having concluded the consultation process, the SECP is set to finalize the Regulations which will be given effect through notification in the official gazette.

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