Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, 6 th June, 2018 NOTIFICATION S. R. O. 731 (I)/2018. – In exercise of powers conferred by section 512 read with sub-clause (ii) of clause (b) of sub-section (2) of Section 218 of the Companies Act, 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan, is pleased to make the following regulations, the same having been previously published vide Notifications S.R.O 34(I)/2018 dated the 17th January, 2018 and S.R.O 435(I)/2018 dated the 9th April, 2018, as required by sub-section (1) of the said Section 512 namely:-

1. Short title, commencement and application. – (1) These regulations shall be called
   the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018. (2) They shall come into force at once. (3) These regulations shall apply to all provident funds or any other contributory retirement funds constituted by a company or where a trust has been created by a company to manage such funds in respect of all the investments made by company or trust, as the case may be, in bonds, redeemable capital, debt securities or instruments issued by a statutory body, units of collective investment schemes registered as notified entities with the Commission and in listed securities including shares of companies, bonds, redeemable capital, debt securities and equity securities. (4) These regulations shall not apply to a pension fund governed under Voluntary Pension Systems Rules, 2005. (5) Within one year from the date of commencement of notification of these regulations, all investments from the provident fund or any other contributory retirement fund constituted by a company or where a trust created by a company with respect to provident fund or any other contributory retirement fund, as the case may be, which are beyond the investment limits provided in these regulations shall be reduced gradually and brought in conformity with the provisions of these regulations. (6) The fund or trust shall amend the trust deed and include a clause providing one time option to the new employees for either allowing or not allowing the fund or the trust to make any investment out of their contributory fund or trust under these regulations.
2. Definitions. – (1) In these regulations, unless there is anything repugnant in the
   subject or context, –
   (a) “Act” means the Companies Act, 2017 (Act No. XIX of 2017); (b) “Annexure” means annexure appended to these regulations; (c) “contribution” means all the money contributed to fund or trust, as the case may be, either by the employees or the company or both; (d) “Fund” means a provident fund or any other contributory retirement fund constituted by a company for its employees or any class of its employees;