Government of pakistan securities and exchange commission of pakistan notification

12. 
Independence and Conflict of Interest: (1) The credit rating company shall 
ensure that;
(a) 
at least one third of its board of directors are independent directors;
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[
Explanation: For the purpose of this clause, the expression "independent director" 
means the same as provided in section 166(2) of the Companies Act, 2017.]; 
Provided that in case of any ambiguity in determining independence of a person 
for the purposes of these regulations, the decision of the Commission shall be final 
and binding upon the credit rating company.
Provided further that the existing credit rating company shall ensure compliance 
with above stated clause latest by January 31, 2017 or at the due date of AGM 
whichever is earlier;
(b) 
an independent director shall be appointed in the following manner:
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[(i) a credit rating company shall select independent directors from the data bank 
of independent directors notified under Section 166 of the Companies Act 
and the Companies (Manner of Selection of Independent Directors) 
Regulations, 2018;
(ii) 
the name selected from the data bank shall be submitted by the credit rating 
company to the Commission for its approval. The credit rating company 
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Substituted for the text “(g) The compliance officer shall prepare quarterly compliance reports which shall be submitted to the 
board of directors of the credit rating company;” vide S.R.O. No.1223(I)/2019 dated October 10, 2019
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Substituted for the text “Explanation: For the purpose of this clause, the expression "independent director" means the same as 
provided in clause (i) (b) of the Code of Corporate Governance for listed companies” vide S.R.O.582(I)/2020 dated June 29, 2020.
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Substituted for the text “i. a credit rating company shall, solely or jointly with other licenced persons, maintain a panel of fit and 
proper persons suitable for appointment of independent directors; ii. a minimum of two names from the panel to be maintained 
under clause (i) above shall be submitted by the credit rating company to the Commission for each vacancy, for its approval. The 
credit rating company shall ensure that such persons are selected from relevant diverse fields of work with appropriate qualification 
and experience; vide S.R.O. No.1223(I)/2019 dated October 10, 2019. 

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