PRESS RELEASE

FOR IMMEDIATE RELEASE

No. PR/MCCD/2014-15

SECP drafts new provident fund rules

ISLAMABAD, February 17: The Securities and Exchange Commission of Pakistan based upon the
redundancy of certain provisions in the existing Employees’ Provident Fund (Investment in Listed
Securities) Rules, 1996, along with S.R.O. 261(I)/2002 dated May 10, 2002 has drafted new
Employees Provident Fund (Investment in Listed Securities) Rules, 2014.

The new rules have been reviewed by the Ministry of Finance and have been published in the official
gazette vide SRO 80(I)/2014. All objections and suggestions received about the draft new rules will
be considered by the SECP before they are finalized.

The new rules were formulated with the main emphasis on improving/tightening governance structure
of the employees’ provident fund/trust, coverage of risk vis-à-vis ensuring possibility of maximum
return on the fund. Furthermore, the new rules are comprehensive and provide more investment
avenues to the fund/trust to increase employee’s wealth.

The salient features of the new rules with respect to risk coverage and enhancement of
employee’s wealth are as under:

 The total investment cap out of the fund in the capital market or in the money market
collective investment schemes is restricted to 70% of the fund. The fund/trust has the
liberty to either exhaust its 70% limit by investing the whole amount in the money
market collective investment schemes or by investing maximum 30% in the capital
market and remaining 40% in the money market schemes. The investment cap for
fund/trust for investing in capital market is restricted to 30%. It may be noted that the
money market collective investment schemes are operationally administered by the
SECP under the 2008 Non-Banking Finance Companies and Notified Entities
Regulations.
 The investment criteria have been tightened where investment is made in either listed
equity or listed debt securities.
 The fund/trust will appoint an investment advisor where aggregate investment in
listed securities is fifty million rupees or above or twenty percent of the size of the
employees’ provident fund, whichever is lower.
 In case of off market transactions, it is ensured in the new rules that these transactions
occur at arm’s length.
 In order to build a portfolio of investment, the fund/trust is restricted to invest only
10% of the fund in a single company.

Shakil Ahmad Chaudhary

Joint Director, Media and Corporate Communications Department
Securities and Exchange Commission of Pakistan
6th Floor, NIC Building, 63 Jinnah Avenue, Islamabad
Tel: 921-4005 or 921-4009 ext. 378
Cell: 0302-855-2254
[email protected]
  The aggregate investment in associated undertakings is restricted to 10% of the size of
the fund.
 Investment in IPO has been allowed subject to the stringent conditions provided in the
new rules.
 Investment is restricted in the securities where the issuer of the security has defaulted
or rescheduled its financial obligations.
 The investment criteria have been tightened where investment is made in money
market collective investment schemes.
 In order to build a portfolio of investment, the aggregate investment in collective
investment schemes, other than money market schemes, managed by a single asset
management company is restricted to 10% of the size of the fund. In case of money
market listed collective investment schemes managed by a single asset management
company, the aggregate investment in listed collective investment schemes is
restricted to 30% of the size of the fund.

The draft new rules have also been placed on the SECP’s website, which can be downloaded from the
link http://www.secp.gov.pk/notification/pdf/2014/SRO_80_2014.pdf.

__________________________________________________________________________________________
Shakil Ahmad Chaudhary
Joint Director, Media and Corporate Communications Department
Securities and Exchange Commission of Pakistan
6th Floor, NIC Building, 63 Jinnah Avenue, Islamabad
Tel: 921-4005 or 921-4009 ext. 378
Cell: 0302-855-2254
[email protected]
 ‫‪PRESS RELEASE‬‬
‫‪FOR IMMEDIATE RELEASE‬‬
‫‪No. PR/MCCD/2014-15‬‬

‫‪ ۲۰۱۴‬یررور ف‪۱۷‬‬

‫ٹ‬
‫رپاوی ٹ‬
‫وسمدہ وعایم‬ ‫اکاین‬ ‫وقانین‬ ‫اونٹنمٹس‬ ‫ڈنف‬ ‫ڈن‬ ‫ےن االپمیزیئ‬ ‫اسی ای یس یپ‬
‫اجری رک دیا ےہ‬ ‫ےئل‬ ‫راےئ ےک‬

‫(اسی ای یس‬ ‫آف یااتسکن‬ ‫نشیمک‬ ‫اڈنی اجنیچسکی‬ ‫) س ی ک یورزیٹ‬ ‫االسم آیاد(‪۷۱‬فروری‬
‫ٹ‬
‫رپاوی ٹ‬
‫) ےن‬ ‫یپ‬ ‫ےک‬ ‫وسمدہ وعایم راےئ اجےنن‬ ‫روزلاک‬ ‫ےئن‬ ‫ےک‬ ‫ڈنف‬ ‫ڈن‬ ‫االپمیزیئ‬
‫ظفحت‬ ‫ےک‬ ‫رسامےئ‬ ‫ےک‬ ‫اک دصقم المزنیم‬ ‫روزل اعتمرف‬ ‫اجری رک دیا ےہ۔ ےئن‬ ‫ےئل‬
‫ےہ ۔‬ ‫وماعق فرامہ رکیا‬ ‫اکری ےک‬ ‫رسامہی‬ ‫اسھت وعیس‬ ‫اسھت‬ ‫ےک‬ ‫انبیا‬ ‫وکینیقی‬
‫ٹ‬
‫رپوی ٹ‬
‫اسی ا‬ ‫وقادئ و وضاطب‪،‬‬ ‫ےئن‬ ‫ےئل‬ ‫ےک‬ ‫ڈنف‬ ‫ڈن‬ ‫ی یس یپ یک اجن االپمیزیئ‬
‫کی یی ٹ‬
‫وایل االصاحت‬ ‫اجےن‬ ‫یک‬ ‫ےئل‬ ‫فروغ ےک‬ ‫ےک‬ ‫ی ل امرٹیک‬ ‫ںیم‬ ‫ےس یااتسکن‬
‫ٹ‬
‫دصقمرپوی ٹ‬
‫یا اور‬ ‫انب‬ ‫وک رتہب‬ ‫ڈاھےچن‬ ‫اابضنیت‬ ‫ےک‬ ‫ڈنفز‬ ‫ڈن‬ ‫اک ہصح ےہ نج اک‬
‫ےہ ۔ اس ےس ےلہپ‬ ‫ںیم ااضہف رکیا‬ ‫یک وتچبں‬ ‫المزنیم‬ ‫ذرےعی‬ ‫ےک‬ ‫رسامہی‬ ‫وفحمظ‬
‫ٹ‬
‫رپاوی ٹ‬
‫روزل ‪ 2002‬ںیم‬ ‫ڈنف‬ ‫ڈن‬ ‫ےھت ۔ االپمیزیئ‬ ‫ےئگ‬ ‫اجری ےئک‬
‫ٹ‬
‫رپاوی ٹ‬
‫وقادئ وک‬ ‫اکری ےک‬ ‫ںیم رسامہی‬ ‫امرٹیک‬ ‫اٹسک‬ ‫ز یک‬ ‫ڈنف‬ ‫ڈن‬ ‫روزل ںیم‬ ‫وجمزےئن‬
‫یہ‬ ‫دصیف‬ ‫اک رتس‬ ‫ڈنفز‬ ‫ےک‬ ‫ےہ۔ المزنیم‬ ‫دی یئگ‬ ‫وجتیر‬ ‫یک‬ ‫رکےن‬ ‫مریڈ تخس‬
‫دصیف‬ ‫اک رصف سیت‬ ‫ڈنفز‬ ‫لک دایتسب‬ ‫اگ ہکبج‬ ‫اج ےکس‬ ‫اکری ںیم اگلیا‬ ‫رسامہی‬
‫دم یم‬ ‫ںیم صصح یک‬ ‫امرٹیک‬ ‫اٹسک‬ ‫ومیکسں‬ ‫وفحمظ‬ ‫رسامہی‬ ‫دصیف‬ ‫اچسیل‬ ‫ں ‪،‬ہکبج‬
‫ےئل‬ ‫اکری ےک‬ ‫اک رسامہی‬ ‫ڈنفز‬ ‫وترپاوی ٹ‬
‫ڈن‬ ‫اچںیہ‬ ‫الزیم وہ اگ۔ اینپمکں‬ ‫ںیم اگلیا‬
‫نکیل‬ ‫ںیگ۔‬ ‫ںیکس‬ ‫ںیم اگل‬ ‫ومیکسں‬ ‫وفحمظ‬ ‫یھب‬ ‫رسامہی‬ ‫دصیف‬ ‫رتس‬ ‫دایتسب‬
‫ںیم‬ ‫امرٹیک‬ ‫اٹسک‬ ‫یک‬ ‫ےس زیادہ ڈنفز‬ ‫دصیف‬ ‫ںیم ےس سیت‬ ‫ڈنفز‬ ‫ےک‬ ‫المزنیم‬
‫ہن‬ ‫اکری‬ ‫یگ ۔رسامہی‬ ‫اج ےکس‬ ‫ںی یک‬
‫اونٹنمٹس‬ ‫ےئل‬ ‫اکری ےک‬ ‫رسامہی‬ ‫رکوڑ ےس زیادہ یک‬ ‫روزل ںیم یاچن‬ ‫ےئن‬

‫‪Shakil Ahmad Chaudhary‬‬

‫‪Joint Director, Media and Corporate Communications Department‬‬
‫‪Securities and Exchange Commission of Pakistan‬‬
‫‪6th Floor, NIC Building, 63 Jinnah Avenue, Islamabad‬‬
‫‪Tel: 921-4005 or 921-4009 ext. 378‬‬
‫‪Cell: 0302-855-2254‬‬
‫‪[email protected]‬‬
 ‫ٹ‬
‫راں‪،‬رپاوی ٹ‬ ‫ٹ‬
‫ڈن‬ ‫ےہ ۔ مریڈ ی‬ ‫دی یئگ‬ ‫وجتیر‬ ‫ےک‬ ‫الزیم رکےن‬ ‫وک یھب‬ ‫رقتر‬ ‫ایڈوایررےک‬
‫اوز ںیم س‬ ‫آیئ یپ‬ ‫یا دیا ڈنفیک‬ ‫انب‬ ‫تخس‬ ‫وقادئ وک یھب‬ ‫ےئل‬ ‫ےک‬ ‫رامہی اکری رکےن‬
‫اسھت‬ ‫اسھت‬ ‫ےک‬ ‫یک رگدش ںیم ااضےف‬ ‫ےس رسامےئ‬ ‫افنذ‬ ‫ےہ۔ وجمزہ روزلےک‬ ‫ایگ‬
‫رسیم‬ ‫ظفحت‬ ‫انمس‬ ‫وک یھب‬ ‫رسامےئ‬ ‫ےک‬ ‫اور وعام اانلس‬ ‫آےئ یگ‬ ‫ںیم رتہبی‬ ‫تشیعم‬
‫اگ ۔‬ ‫آےکس‬
‫ٹ‬
‫رپاوی ٹ‬
‫ر‬ ‫ڈنف‬ ‫ڈن‬ ‫وجمزہ االپمیزیئ‬ ‫دعب‬ ‫اجیرہ ےک‬ ‫وزلےک وسمدہ وک اسی وزارت خراہن ےک‬
‫زگٹ ںیم‬ ‫روزل آلشیف‬ ‫ےئن‬ ‫ےہ ہکبج‬ ‫ٹ‬
‫اسن رپ اجری رک دیا ایگ‬ ‫ای یس یپ یک ون‬
‫واےل افراد اور اینپمکں‬ ‫رےنھک‬ ‫دیپسچل‬ ‫ںیہ یاآہکن‬ ‫رک دےئ ےئگ‬ ‫شاعئ‬ ‫یھب‬
‫وجمزہ روزل‬ ‫دعب‬ ‫ےک‬ ‫آراء اجےنن‬ ‫داروں ےک‬ ‫رشاتک‬ ‫آراء دے ںیکس۔‬ ‫روزل ںیم اینپ‬ ‫ےئن‬
‫یئگ‬ ‫دی اجےئ‬ ‫لکش‬ ‫۔وک یمتح‬

‫__________________________________________________________________________________________‬
‫‪Shakil Ahmad Chaudhary‬‬
‫‪Joint Director, Media and Corporate Communications Department‬‬
‫‪Securities and Exchange Commission of Pakistan‬‬
‫‪6th Floor, NIC Building, 63 Jinnah Avenue, Islamabad‬‬
‫‪Tel: 921-4005 or 921-4009 ext. 378‬‬
‫‪Cell: 0302-855-2254‬‬
‫‪[email protected]‬‬