Circular No. 03 of 2024 Appointment of Auditors for SECP Regulated Entities

Securities and Exchange Commission of Pakistan Securities Market Division Policy, Regulation and Development Department NIC Building, Jinnah Avenue, Blue Area, Islamabad, Pakistan URL: www.secp.gov.pk No. SMD/SE/2(322)/2022 February 06, 2024 Circular No. 03 of 2024 APPOINTMENT OF AUDITORS FOR SECP REGULATED ENTITIES In continuation and partial modification of its earlier Circular No. 4 of 2023 dated April 03, 2023, the Securities and Exchange Commission of Pakistan, in exercise of the powers under section 20(4)(jb) of the Securities and Exchange Commission of Pakistan Act, 1997, read with section 2 (iii) of the Securities Act, 2015; section 2 (3) of the Futures Market Act, 2016; section 15 and 41B of the Modaraba Companies and Modaraba (Flotation and Control) Ordinance, 1980 read with rule 19 of the Modaraba Companies and Modaraba Rules, 1981; section 17 of the Corporate Restructuring Companies Act, 2016; sub-section (1)(a) of section 48 of the Insurance Ordinance 2000; section 282B of the Companies Ordinance, 1984; rule 7(1)(ba) of the NBFC Rules, 2003; and regulation 38(2)(h) of the Non-Banking Finance Companies and Notified Entities Regulations 2008 has decided to revise the list of auditors for audit of SECP Regulated Entities. Accordingly, it is informed that “Junaidy Shoaib Asad” is being included under clause (ii) of the revised Annexure I (enclosed herewith). Further, any eligible firm desiring its enlistment or sharing updated information may submit its application in the prescribed form to the Commission by the end of February. (Asif Iqbal) Director/HOD

Securities and Exchange Commission of Pakistan Securities Market Division Policy, Regulation and Development Department NIC Building, Jinnah Avenue, Blue Area, Islamabad, Pakistan URL: www.secp.gov.pk ANNEXURE I LIST OF APPROVED AUDITORS FOR SECP REGUALTED ENTITIES [see Circular No. 03 of 2024] i. Audit firms given under this clause are eligible to conduct audit of all the SECP-regulated entities specified in the circular. Further, Securities Exchanges, Futures Exchanges, Clearing Houses, and Depository Companies; Securities Brokers with Trading and Clearing Category license; Asset Management Companies or Pension Fund Managers or NBFCs with Assets under Management (AuM) of equal to or more than Rs. 50 billion and lending NBFCs (deposit-taking); Modarabas having asset size equal to or more than Rs. 1 billion; Collective Investment Schemes or Voluntary Pension Schemes or REIT schemes having asset size of equal to or more than Rs. 10 billion; Insurance, Reinsurance or Takaful Operators having total assets of more than Rs. 10 billion; Collateral Management Companies; Credit Rating Companies and Professional Clearing Member, shall only appoint auditors from the following list under this clause:

1. A. F. Ferguson & Co. 9. Muniff Ziauddin & Co.
2. Baker Tilly Mehmood Idrees Qamar 10. Nasir Javaid Maqsood Imran
3. BDO Ebrahim & Co. 11. Rahman Sarfaraz Rahim Iqbal Rafiq
4. Crowe Hussain Chaudhury & Co. 12. Reanda Haroon Zakaria & Co.
5. EY Ford Rhodes. 13. Riaz Ahmad & Co
6. Grant Thornton Anjum Rahman 14. RSM Avais Hyder Liaquat Nauman
7. KPMG Taseer Hadi & Co. 15. Yousuf Adil
8. Kreston Hyder Bhimji & Co. 16. UHY Hassan Naseem & Co. ii. Securities Brokers having license of Trading and Self Clearing category; Asset Management Companies or Pension Fund Managers or NBFCs with AuM of less than Rs. 50 billion; non-deposit taking NBFCs undertaking lending activities through mobile applications; Modarabas having asset size of less than Rs. 1 billion; Collective Investment Schemes or Voluntary Pension Schemes or REIT Schemes having asset size of less than Rs. 10 billion; Insurance, Reinsurance or Takaful Operators having total assets of Rs 10 billion or less, shall appoint audit firm from the following list under this clause or from the list provided under clause (i) above:
9. Amin Mudassar & Co. 7. Parker Russell-A. J. S
10. Fazal Mahmood & Co 8. PKF F.R.A.N.T.S.
11. Ilyas Saeed & Co 9. Riaz Ahmad Saqib Gohar & Co.
12. Junaidy Shoaib Asad 10. Rizwan & Co.
13. Mushtaq & Co. 11. ShineWing Hameed Chaudhri & Co.
14. Naveed Zafar Ashfaq Jaffery & Co. 12 Tariq Abdul Ghani Maqbool & Co iii. Securities brokers having license under Trading-Only category; Futures Brokers of PMEX, Securities and Futures Advisers; Modarabas having asset size of less than Rs. 200 million; Lending NBFCs (other than deposit-taking); Insurance brokers, Reinsurance brokers; Third Party Administrators; Corporate Restructuring Companies, trusts created by Corporate Restructuring Companies and Share Registrars and Balloters, shall appoint any audit firm having Satisfactory QCR Rating from ICAP. iv. In case, if any entity mentioned under clause i, ii and iii, is a Public Interest Company as per the Third Schedule of the Companies Act, 2017, the audit firm to carry out audit of such Public Interest Company shall also be required to be registered from Audit Oversight Board under section 36K(a) of the Securities and Exchange Commission of Pakistan Act, 1997.