Amendments to the Credit Rating Companies Regulation, 2016

The Securities and Exchange Commission of Pakistan amends the Credit Rating Companies Regulation, 2016 to update references from the Companies Ordinance, 1984 to the Companies Act, 2017 across multiple regulations and forms. The amendments remove non-refundable processing and renewal fee requirements from application procedures while establishing a new license application fee of 100,000 PKR in Schedule I. Key operational changes include allowing credit rating companies to outsource compliance and internal audit functions to Chartered Accountants, mandating semi-annual reviews of risk management systems, and permitting the public dissemination of private ratings under specific open bidding or client-initiated scenarios. Additionally, the rules clarify the selection of independent directors, adjust ownership thresholds for director disqualifications, and relax experience requirements for fresh graduates hired as rating analysts.

SECP published 3 documents in the last 30 days — get each new one by email the day it lands.

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.- Islamabad, the 10th October, 2019 NOTIFICATION S. R. O. 1223 (I)/2019.- In exercise of powers conferred by sub-section (1) of section 169, read with sections 68, 69, 75, 79, 80, 84 and 151 of the Securities Act, 2015 (Act No III of 2015), the Securities and Exchange Commission of Pakistan is pleased to make the following amendments to the Credit Rating Companies Regulation, 2016, the same having been previously published in official Gazette vide S.R.O 1571(I)/2018, dated December 26, 2018, and also placed on the website of the Commission as required by sub-section (4) of
section 169 of the Securities Act, 2015 namely:-
In the aforesaid Regulations,-
(1) in regulation 2,-
(a) in sub-regulation (1), after clause (a), the following new clause shall be inserted, namely:- "(ab) Companies Act" means the Companies Act, 2017 (XIX of 2017)"; and (b) in sub-regulation 2, for the expression "Companies Ordinance, 1984 (XLVII of 1984)," the expression "Companies Act" shall be substituted; (2) in regulation 4, in clause (b), for the expression "Companies Ordinance, 1984 (XLVII of 1984)," the expression Companies Act" shall be substituted; (3) in regulation 5, in sub regulation (1), the words “and receipt evidencing payment of non-refundable processing fee as specified in Schedule I” shall be omitted; (4) in regulation 6,- (a) in sub-regulation (2),- (i) in clause (f), in third proviso, for the expression “and of the companies, firms, sole proprietorship etc. where the person was a chief executive, director (as a major shareholder, sponsor), partner or owner etc;” the expression “the chief

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Lineage: Amended

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Timeline

Amended 2 times · last 2022-10-18

2022-10-18SECPCredit Rating Companies Regulations, 2016 (Amended till September 19, 2022)amends
2020-07-01SECPCredit Rating Companies Regulations 2016amends

Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works