Islamabad: The Securities & Exchange Commission of Pakistan (SECP) on Monday amended the Private Funds Regulations 2015, a news source reported. Under the amended rules, SECP has made registration mandatory for anyone looking to engage in the business of private equity and venture capital funds management.
According to details, the new rules indicate that no person shall launch, establish, or raise money in Pakistan for investment in a private fund unless the fund has acquired registration under the Private Funds Regulations 2015.
Moreover, private fund management companies would have to secure the in-principle approval of the SECP. Following the approval, these organisations will have to execute and seek registrations of their trust deeds.
SECP officials stated that when a private fund will utilise or propose to utilise borrowing, the Private Fund Management Company would have to ensure that it has the necessary expertise in the associated tasks. Moreover, the short-term borrowing by a private equity and venture capital fund should not exceed 15% of the size of their size, they added.
The new regulations also include several other amendments.
