Printer Friendly

SECP approves Debt Securities Trustee Regulations for comments.

ISLAMABAD -- The Securities Exchange Commission of Pakistan has approved a comprehensive draft regulatory framework under the Securities Act, 2015, for the licensing and regulation of debt securities trustees (DSTs).

In the proposed regulations notified for public consultation, DSTs' registration has been replaced with their licensing. The validity of DSTs' license has been reduced from three years to one year as per requirement of the Securities Act. Banks, development financial institutions and investment finance companies may act as DSTs subject to the condition that they remain compliant with the requirements of the act and the regulations at all times.

In order to facilitate the development of the debt market, DST has been allowed to make investment of up to 10% in the debt issue of which it is acting as a DST, subject to the condition that it would hold such investment till maturity.

Furthermore, for protection of investors, approval of two-thirds of the outstanding debt securities holders in value has been made mandatory in case of restructuring/rescheduling of any debt security. The existing DSTs have been allowed one-year timeframe to comply with the requirements of the revised regulations.

The draft framework is available on the SECP's website. The SECP shall take into considerations all the comments received by November 22, 2016. The comments may be emailed at or mailed to Director (PRPD), Securities Market Division, Securities Exchange Commission of Pakistan, 9th Floor, NIC Building, Jinnah Avenue, Islamabad.

COPYRIGHT 2016 Asianet-Pakistan
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:The Frontier Star (Northwest Frontier Province, Pakistan)
Date:Nov 6, 2016
Previous Article:Former Senator Faisal Raza Abidi taken into custody in Karachi.
Next Article:Man stabbed injured.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters