Brief on the Employees Contributory Funds | KPMG | PK
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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Funds (Investment in Listed Securities) Regulations, 2018, herein after referred as (“the regulations”), which has repealed the above mentioned rules.

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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Funds (Investment in Listed Securities) Regulations, 2018, herein after referred as (“the regulations”), which has repealed the above mentioned rules.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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