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030611
SECURITIES AND
EXCHANGE COMMISSION OF PAKISTAN
Circular No. 14 Reference No. SC/NBFC-ED/536/2003
June 11, 2003
Issuance of Certificates of Investment (COIs) /Certificates of Deposit (CODs) by Non-Banking Finance Companies
Attention is invited to Rule 12 of the
Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the
“NBFC Rules”) which permits non-banking finance companies (NBFCs) to raise
deposits in the form of certificates of investment (COIs) or certificates of
deposit (CODs) subject to the fulfillment of certain conditions as laid down in
the said NBFC Rules.
In this connection, it is clarified that the NBFCs carrying out investment
finance services and which hold a valid permission granted under SRO. 585(1)/87
dated July 13, 1987 issued under Capital Issue (Continuance of Control) Act,
1947 to raise deposits are not required to obtain any fresh permission in terms
of Rule 12(1) of the NBFC Rules for issuance of CODs/COIs. Similarly, the NBFCs
carrying out the business of leasing or housing finance and which hold a valid
permission to raise deposits in terms of the Leasing Companies (Establishment
and Regulation) Rules, 2000 or SRO. 1356(1)/90 dated 24th December, 1990 are not
required to obtain a fresh permission in terms of Rule 12(1) of the NBFC Rules
to raise deposits. The permission already granted would be deemed valid for
issuance of CODs/COIs. However, all the conditions laid down in Rule 12 of the
NBFC Rules are applicable to the NBFCs raising deposits in the form of COIs/CODs.
Therefore, in terms of Rule 12(2) of the NBFC Rules, all such NBFCs permitted/
authorized to raise deposit through issuance of COIs/CODs are hereby required to
ensure compliance with Rule 12(1)(c) of the NBFC Rules. The afore-said NBFCs are
also advised to furnish their latest available credit rating to this office.
(Najam Ali)
Executive Director
Distribution
The Chief Executives of NBFCs licensed to carry out business of leasing,
investment finance services and housing finance services.
The Chairman, Investment Banks Association of Pakistan.
The Chairman, Leasing Association of Pakistan.
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