Regulatory Alerts2017-01-12
Added · Updated
Debt Securities Trustees Regulations 2017
The Securities and Exchange Commission of Pakistan establishes licensing requirements for debt securities trustees, mandating a minimum equity of fifty million rupees and an entity credit rating of at least A-. Licensed entities must renew their licenses annually, with financial institutions exempt from specific licensing procedures if they meet eligibility criteria and submit annual compliance affidavits. The regulations impose strict duties on trustees to protect investor interests, including monitoring issuer covenants, enforcing security upon default, and reporting semi-annually to the Commission and securities exchanges. Trustees are prohibited from acting in issues involving associated companies, underwriting, or where significant shareholding or liability overlaps exist to prevent conflicts of interest.