The Securities and Exchange Commission of Pakistan (SECP) has eased some restrictions for companies with foreign subscribers/officers who are Afghan nationals or of Afghan descent.
The SECP has abolished the requirement of security clearance from the Ministry of Interior (MoI) for companies with foreign subscribers/officers who are Afghan nationals or of Afghan origin under the revised Companies (Incorporation) Regulations, 2017.
Previously, the SECP incorporated companies with foreign subscribers/officers who are Afghan or Indian nationals or of Afghan or Indian origin after receiving security clearance.
According to the SECP’s new regulations, the Commission must obtain security clearance from the MoI in the following cases and in the following manner:
- Companies with foreign (other than Indian national or origin) subscribers/officers will be incorporated based on each foreign subscriber/undertaking, officer, and the case will be forwarded for security clearance. Provided, however, that if the name of the subscriber/officer is not security cleared by MoI, the subscriber/officer and the company must take immediate steps to replace the subscriber and transfer any shares held by the subscriber.
- Companies with foreign subscribers/officers who are Indian nationals or of Indian origin will be incorporated following the receipt of security clearance from the MoI, and (iii) security services provider companies will be included following the receipt of security clearance from the MoI.
The manner of security clearance shall be subject to any change in the government’s security policy from time to time, according to the SECP.
If the subscriber is a foreign company or a foreign body corporate, the SECP’s registrar will require additional information such as the profile of the foreign company or foreign body corporate, details of its directors’ nationality and country of origin, a copy of its charter, statute, or memorandum and articles, and so on, according to the SECP.