Regulatory Alerts2018-06-11
Added · Updated
Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018
These regulations impose investment limits and conditions on provident and contributory retirement funds constituted by companies in Pakistan, excluding pension funds under Voluntary Pension Systems Rules. Investments in listed securities, debt instruments, and collective investment schemes are capped at fifty percent of the fund's size, with specific sub-limits of thirty percent for debt and equity securities, and further restrictions on sector, issuer, and single-instrument exposure. Funds must adhere to strict eligibility criteria, such as minimum profitability and credit ratings, and are prohibited from day trading, leverage, and investing in defaulted issuers. Companies must amend trust deeds to offer new employees an opt-out clause and submit semi-annual financial disclosures to the Securities and Exchange Commission of Pakistan within one month of each half-year period.