SRO 425 (I)/2017 Delegation of Powers to Commissioner and officers of SMD

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN * Islamabad, the 6th June, 2017

NOTIFICATION

S.R.O. 425 (I)/2017.- In exercise of the powers conferred by section 10 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) (the Act), the Securities and Exchange Commission of Pakistan (the Commission), in continuation of its previous S.R.O. No. 123(I)2017, dated 27th February, 2017, subject to such conditions and limitations as it may from time to time impose, hereby delegates the following powers and functions of the Commission to its Commissioner and officers of Securities Market Division, namely:-

1. Powers of the Commission delegated to Commissioner (SM)

Sr. No.	Public Offering (Regulated Securities Activities Licensing) Regulations, 2017	Nature of power/function
1.	2(iv)(e)	Specify any other related function to be performed by banker to an issue from time to time.
2.	5(4)	Require the applicant to appear for personal representation.
3.	6(3)	Grant license to the applicant
4.	8(1)	Give a reasonable opportunity of being heard to the applicant, where license is not to be granted
5.	8(2)	Communicate the refusal to grant a licence, stating therein the grounds on which the application has been rejected.
6.	10(2)	Accept the application made for cancelation of the licence.
7.	12	Grant exemption to financial institutions from licensing requirements in case of Underwriter.
8.	Schedule III 1st proviso to clause 2(b) iii	Provide an opportunity of making representation in case of overdue or past due payment.
9.	Schedule III 2nd proviso to clause 2(b) iii	Grant exceptions for the purpose of this sub-clause.

Sr. No.	Public Offering Regulations, 2017	Nature of power/function
1.	7(3) proviso	Allow undertaking of book building process and subscription by retail investors simultaneously.
2.	7(5)	Impose any other conditions under this regulation on case to case basis.
3.	10(1)	Grant extension in the bidding period.
4.	10(2)(iii)	Specify the percentage for the bidder.
5.	11(1) explanation	Specify information to be given in supplement prospectus.
6.	11(4)	Specify period for allotment and issue shares against the accepted and successful applications and unblock/ refund the subscription money of the unsuccessful applicants.
7.	13(7)(i)	Specify conditions to be fulfilled by Shariah compliant debt securities including Sukuk.
8.	13(7)(viii)	Specify the conditions for public offer of debt securities.
9.	18(10)	Specify any other related functions to be performed by Consultant to the Issue.

	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	4(d)	Approve sale or transfer of share capital or any arrangement for transfer of control of the securities/futures adviser.
2.	5(4)	Require the applicant to appear for representation.
3.	6 proviso	Issue clarification in respect of treatment of any item of assets and/or liabilities for the purpose of calculating the net worth of a securities/futures adviser.
4.	7(2)	Grant license to the applicant after conducting such inquiries and obtaining such further information as deemed appropriate

5.	9(1)	Give a reasonable opportunity of being heard to the applicant, where license is not to be granted.
6.	9(4)	Publish decision of refusal to grant licence.
7.	10(2)	Cancel the licence upon receipt of application.
8.	10(3)	Cancel the licence under the circumstances given in this regulation
9.	11(2)	Specify the time period within which the securities adviser or futures adviser shall provide a copy of any advertisement to the Commission.
10.	21	Issue Direction for preparation of financial statements in conformity with the accounting standards.
11.	24(1)	Require a securities/futures adviser to submit to the Commission such periodic returns as it may direct.
12.	24(2)	Require securities/futures adviser, either generally or in a particular case or class of cases, to submit to the Commission such exceptional returns as it may direct.
13.	Annexure A: clause (b) (1)(c)	Extended time for obtaining relevant mandatory certification, in case of securities advisor/other officers.
14.	Annexure A clause (b) (2)(c)	Extended time for obtaining relevant mandatory certification, in case of future advisor /other officers.
15.	Annexure A clause (3)(c)	Extended time for obtaining relevant mandatory certification, in case of distributor of CIS and/or VPF united/other officers.
16.	Annexure A clause (3)(c)2nd proviso	Specify the nature of certification to be obtained by employees of the securities or future advisors
17.	Annexure A: Note	Decide in case of any ambiguity in determination of fitness and proprietary of a person in terms of the Fit and Proper Criteria.
18.	Clause 4.8 of Annexure B of the regulations	Require the applicant to submit additional information and documents along-with application for license as a securities/futures adviser.

2. Powers of the Commission delegated to Executive Director/Head of Department (Public Offering and Regulated Persons Department)

Sr. No.	Public Offering (Regulated Securities Activities Licensing) Regulations, 2017	Nature of power/function
1.	2(iv)(e)	Specify any other related function to be performed by banker to an issue from time to time.
2.	5(2)	Require the applicant to furnish such further information or clarification regarding its activities and businesses as it deems appropriate.
3.	6(2)	Seek additional information about the applicant from other agencies and regulatory bodies and may also conduct a pre-license assessment or a visit of the premises of the applicant to verify the genuineness of the submitted information.
4.	7(2)	Renew the license
5.	8(1)	Give a reasonable opportunity of being heard to the applicant, where license is not to be renewed.
6.	8(2)	Communicate the refusal to renew a licence, stating therein the grounds on which the application has been rejected.
7.	10(3)	Upon acceptance of application for cancellation of license, exclude name of the applicant from the register of the regulated persons maintained under section 72 of the Act.
8.	Schedule III Clause 2(b) iii	Provide an opportunity of making representation in case of overdue or past due payment.

Sr. No.	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	5(3)	Require applicant to furnish further information or clarification as deems appropriate, while considering application for license.
2.	7(2)	Seek additional information from other government agencies.

3.	8	Renew the license of securities/futures adviser for one year
4.	9(1)	Give a reasonable opportunity of being heard to the applicant, where license is not to be renewed.
5.	9(3)	Extend time for intimation and settlement of all dues by the applicant whose application for renewal of licence is refused.
6.	9(4)	Publish decision of refusal to renewal of licence.
7.	18(1)(t)	Require the securities/futures adviser to submit any document, report or information as and when required
8.	Clause 12 of Annexure C of the Regulations	Require the securities/futures adviser to provide information and documents along-with application for renewal of license.

3. Powers of the Commission delegated to Executive Director/Head of the Department (Policy, Regulation and Development Department)

	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	18(1)(t)	Require the securities/futures adviser to submit any document, report or information as and when required

4. Powers of the Commission delegated to Executive Director/Head of the Department (Commodity Exchange)

	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	18(1)(t)	To require the securities/futures adviser to submit any document, report or information as and when required

5. Powers of the Commission delegated to Director/Head of the Department (Surveillance, Supervision and Enforcement Department)

	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	18(1)(t)	To require the securities/futures adviser to submit any document, report or information as and when required

The powers and functions of the Commission provided in the Regulations made under Securities Act, 2015 (III of 2015), which are not explicitly delegated to any of the officer of SMD are delegated to Commissioner (SMD).

In case, the posts of Executive Director/Director/Head of Department in the Division/department is vacant, or he/she is unavailable or unable to perform his/her functions, the powers and functions delegated to him/her through this notification shall stand delegated to the Commissioner (SMD).

No. SMD/BO-Policy/1(2)2001

(Usman Hayat)
Secretary to the Commission