ISLAMABAD, Jan 5: The Securities and Exchange Commission of Pakistan (SECP) has promulgated the Group Companies Registration Regulations, 2008 to provide a regulatory framework for the formation of such companies, comprising a holding company and its subsidiaries.

The regulations will also empower the commission to designate the group companies contemplating to avail group relief and group taxation benefits from the Federal Board of Revenue (FBR).

The regulations will enable a holding company desirous of forming a group with its subsidiary companies to apply to the SECP along with specified documents for registration as a group for the purpose of designation to claim underlying tax benefits from FBR, as envisaged under the relevant provisions of the Income Tax Ordinance, 2001.

An SECP spokesman on Monday said the commission would register the holding company and its subsidiary companies as a group in prescribed form. The regulations also provide for change in the composition of a group for which the holding company would be required to apply to the commission along with the specified documents. The SECP would issue a certificate of change in the composition of the group in prescribed form.

The commission would also be empowered to cancel the registration of the group if any company within the group fails to comply with the regulations or any direction given by the commission.

After registration of the group, the holding company should ensure that the group is in compliance with the requirements of the Code of Corporate Governance, International Financial Reporting Standards as applicable in Pakistan and that the transactions by any company within the group with its associated companies and associated undertakings are carried out and recorded on an arm’s length basis.

The regulations would also facilitate streamlining of the group ownership structures and consolidation of the present complicated cross-company ownership.

Opinion

Editorial

Dangerous law
Updated 17 May, 2024

Dangerous law

It must remember that the same law can be weaponised against it one day, just as Peca was when the PTI took power.
Uncalled for pressure
17 May, 2024

Uncalled for pressure

THE recent press conferences by Senators Faisal Vawda and Talal Chaudhry, where they demanded evidence from judges...
KP tussle
17 May, 2024

KP tussle

THE growing war of words between KP Chief Minister Ali Amin Gandapur and Governor Faisal Karim Kundi is affecting...
Dubai properties
Updated 16 May, 2024

Dubai properties

It is hoped that any investigation that is conducted will be fair and that no wrongdoing will be excused.
In good faith
16 May, 2024

In good faith

THE ‘P’ in PTI might as well stand for perplexing. After a constant yo-yoing around holding talks, the PTI has...
CTDs’ shortcomings
16 May, 2024

CTDs’ shortcomings

WHILE threats from terrorist groups need to be countered on the battlefield through military means, long-term ...