SECP amends NBFC rules – Alfalah Securities Limited

Karachi: The Securities and Exchange Commission of Pakistan (SECP) has made amendments in the Non-Banking Financial Companies (NBFC) regulations, according to which:

According to Alfalah Securities Limited,

• Replacement of seed capital requirements with minimum fund size of PKR 100mn.

• Enhancement of unit-holder’s rights in case of a change in the fund’s category and other investment objectives such as management fee, back end load etc.

• Suspension of redemption of shares to a maximum limit of 15 days and empowering of unit holders to make key decisions of the future of the fund and including change of the fund manager.

• Registration of mutual fund distributors with MUFAP and flexibility of registration offered to existing distributors until February, 2012.

• Exemptions granted to fund of funds and capital protected fund from investment limits in group companies. Moreover, exemptions granted to fund of funds per party investment limit and passive funds have also been excluded from the per fund manager of 3 funds.

• Reduction in limit of annual equity brokerage commission to be paid by a mutual fund to a single broker from 30% to 15% to promote competition among brokers.

• Restrictions on a mutual fund to subscribe to an issue underwritten, co-underwritten / sub-underwritten by a group company of its Asset Management Company.