Non-Banking Finance Comp­an­ies law: Income given new meaning

 
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ISLAMABAD, Aug 5 (TNS): The Non-Banking Finance Comp­an­ies and Notified Entit­ies Regulations 2008 have been amended in order to give new meaning to income in the law. Secu­ri­ties and Exchange Com­mission of Pakistan (SECP) has done the job.

A new clause has been inserted to define the ‘Element of Income’ — the difference between net asset value on the issuance date and the net asset value at the beginning of relevant accounting period — a definition of income which was absent in NBFC units’ regulations earlier. Similar amendments have been made in other clauses of the regulations to define the income of an asset management company.

One more important change has been made in the schedule related to ‘disclosure requi­re­ments by collective investments schemes’ to be filed by the asset management companies in their annual reports. In the subject of income statement, the sub-clause ‘Element of income and capital gains’ has been deleted and the clause with simplified term — ‘Net Income’ has been inserted.

Moreover, a new clause titled ‘Allocation of net income for the year’ has been included elaborating income already paid on units redeemed, and accounting income available for distribution, with further details about relating to Capital Gains (ii) Excluding Capital Gains. The clause 4 — ‘Distribution statement’ in the Schedule V has been deleted, while amendments have been made in the clause (50-Statement of movements in reserves or Unit holder’ fund.

Bilal Rasul Secretary to the Commission, SECP has signed the notified amendments.

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