Opinion on Draft Associations Licencing & Corporate Regulations

The Securities and Exchange Commission of Pakistan (SECP) has extended the date for submission of public opinion on draft Licencing and Corporate Governance Regulations for Associations Not-for-Profit to June 30, 2013. 

Earlier the proposed regulations had been published in the official Gazette vide S.R.O. 301(I)/2013 dated April 8, 2013, for soliciting stakeholders comments within 15 days  before finalization.  In the meantime, the SECP is planning to hold round table conferences with the stakeholders, especially, corporate NGOs to obtain their suggestions & recommendations.

The proposed regulations will result in increased transparency and assurance with respect to proper utilization of donations and funds received by the Associations Not-for-Profits; this in turn will result in increased confidence of both domestic and international Donors in the subject entity. The regulations require licenced NGOs to appoint a chief financial officer, company secretary and chief internal auditor, while at the same time defining their respective roles. The regulations also require NGOs to implement proper corporate financial reporting framework and to certify compliance with all the requirements of Companies Ordinance, 1984.  The draft regulations have been placed on “SECP Web Consultation Forum” at the linkhttp://forum.secp.gov.pk/forum.php for systematic gathering of public comments and suggestions.