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Investment rules for provident fund notified

The SECP embraced a broad consultative procedure before concluding the tenets and three gatherings were held in such manner in April 2016 with important partners, for example, the ICAP, ICMAP and MUFAP.

The Companies Ordinance, 1984, orders the keeping up of provident assets by organizations. Inferable from business sector progression and keeping in mind the end goal to urge provident assets to make interests in recorded securities to gain better returns, Employees Provident Fund (Investment in Listed Securities) Rules were presented in 1996.

With constant advancement in value markets and improvement of new items presented by non-saving money account organizations for better returns, provident assets showed signs of improvement decisions in, the business sector.

As danger and return go together, in this way, keeping in mind the end goal to secure investment funds of workers of the organizations, the SECP drafted new standards for the reason.

The venture criteria have been fixed where speculation is made out of the provident asset.

The total interest in constituting organization or its related endeavors has been confined to five for each penny of the measure of the asset.

Interest in IPO has been permitted subject to the stringent conditions and the accommodation of reports in regards to speculations out of provident asset/trust after at regular intervals has been made compulsory.

The provident assets can put resources into securities recorded on the Pakistan Stock Exchange in Pakistan, however such speculations can’t be 50pc of the extent of the representatives’ provident asset.

The guidelines likewise say that the gave all out interest in recorded obligation securities, recorded obligation aggregate speculation plans and currency market aggregate venture plans enlisted as informed substance with the SECP can’t surpass fifty for every penny of the span of the workers’ provident asset.

The aggregate interest in recorded value securities and recorded value aggregate speculation plans, enrolled as informed substance with the SECP, should not surpass 30pc of the span of the workers’ provident asset.

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