A banker to an issue, consultant to the issue and underwriter shall perform their duties and functions and discharge their obligations as specified in the Public Offering Regulations, 2017 and Listed Companies (Substantial Acquisition Of Voting Shares and Takeovers) Regulations 2017, the SECP said. The regulations said that no person shall act as or perform the functions of banker to an issue, consultant to the issue and underwriter unless such person is licensed by the Commission under these Regulations.
The development financial institution shall be exempt from the licensing requirements to act as an underwriter subject to the condition that it meets all eligibility criteria given, the SECP said.
Any development financial institution shall obtain approval of the Commission prior to commencing the business as underwriter. The said financial institution shall submit a board resolution authorising it to undertake the business as an underwriter along with a non-refundable fee of Rs 500,000.
Any development financial institution while acting as an underwriter shall remain compliant with all the requirements of these Regulations and Public Offering Regulations 2017.
Provided that a person registered as an underwriter prior to coming into force of these Regulations, shall be deemed to be licensed as an underwriter under these Regulations and shall comply with all the requirements of these Regulations within a period of one year from the date of coming into force of these Regulations.
Any person providing services as banker to an issue and consultant to the issue at the time of coming into force of these Regulations shall obtain licence under these Regulations within a period of six months from the date of notification of these Regulations in the Official Gazette.
A person which is compliant with the eligibility criteria mentioned in these Regulations and has not yet obtained a licence under these Regulations may provide services as banker to an issue and consultant to the issue during this six-month period, SECP said.
The SECP has clarified that "banker to an issue" means a scheduled bank licensed by the Commission and capable to perform certain functions; "consultant to the issue" means a person licensed by the Commission for undertaking the business of advising any person or undertaking regarding.
A person may apply to the Commission for grant of licence under these Regulations, if such person fulfils the laid down conditions, the SECP said. The Commission, while considering the application for grant of licence, may require the applicant to furnish such further information or clarification regarding its activities and businesses as it deems appropriate.
Any subsequent change in the information provided to the Commission at the time of filing of application shall be intimated to the Commission within seven working days from the date of such change.
The applicant shall, if so required, by the Commission, appear before the Commission for personal representation through an officer duly authorised for this purpose in writing by the board of directors of the applicant. The Commission, while considering the application shall beside the requirements mentioned under subsection (2) of section 69 of the Act inter-alia take into account the following matters, namely:- The licence shall remain valid for a period of one year from the date of its grant unless it is restricted, suspended or cancelled earlier by the Commission, the SECP added.
