January 24 , 2017
SECP suggests allowing offshore companies to operate in country
Zafarul Haq Hijazi also asks govt to announce one-time relief for those who want to whiten their black money
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Zafarul Haq Hijazi has suggested allowing offshore companies to operate in Pakistan to attract foreign investment.He also asked the government to announce one-time relief for those who wanted to whiten their black money so that they could also be brought into the tax net.
Talking to the media on Tuesday, he urged the investors not to lose their hard-earned money to unscrupulous elements.
He said that investor should always deal with licensed brokers who were registered with the SECP; trade only through their own accounts with the broker and central depository company (CDC); never authorise the third party to operate their accounts; always make payments to broker by crossed cheque and obtain receipts; always maintain documentary record of business transactions so as to protect their hard-earned money; never transact on “tips”, insider news, rumours or media report; and always maintain custody and complete control over their securities.
“In case of default of broker, your investment will not be safe. The investors are cautioned to avoid making an investment decision on the basis of research report issued by a person or entity not notified by the SECP.”
He emphasised that this point should be constantly highlighted in the electronic and print media.
Zafar Hijazi said that upon the recommendation of subcommittee of the National Assembly Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatisation and other stakeholders, the commission had introduced 60 new sections in the company’s bill 2016.
He said that the provision regarding “information relating to beneficial owners of foreign companies is being revised”. “Such information will only be required to be provided by the foreign company to the commission (SECP) if required. Any other information required in connection with any inspection, inquiry or investigation may also be demanded. Further, a penalty of level 3 has been proposed to be imposed on default,” he added.
He said that the provision relating to security clearance of shareholders, directors and office-bearers of companies was being restricted to companies notified by the federal government.
“Power to grant exemption has been proposed to be given to the commission from the requirement for a director to hold NTN as per the provisions of Income Tax Ordinance, 2001.”
The SECP chief said that real estate companies soliciting advances “shall be required” to recognise their income in accordance with the International Financial Reporting Standards (IFRS). “Further, the escrow account to be maintained for the real estate project shall be not subject to any attachment except for the purpose of the project.”
He said the subcommittee had cleared all those amendments. “Now the bill along with amendments will be sent to the National Assembly to complete the needed legislative process,” he said.
Courtesy www.dailytimes.com.pk