Government of pakistan securities and exchange commission of pakistan notification

  
4. 
Eligibility criteria.- Any person may apply to the Commission for grant of license 
to act as credit rating company under these regulations, if such person fulfills the following 
conditions:
(a) 
has obtained permission of Commission under regulation (5);
(b) 
is public company incorporated under the 
6
[Companies Act];
(c) 
meets the financial resources requirement provided under these regulations;
(d) 
its promoters or sponsors, proposed directors, chief executive and chairman of the 
board of directors fulfil the Fit and Proper criteria as specified in Annexure C;
(e) 
its promotors or sponsors, substantial shareholders and directors have deposited 
their shares with Central Depository Company of Pakistan Ltd in an account 
marked as blocked [for a period of three (3) years from the date of obtaining the 
license under these regulations”]
7
:
(f) 
its promoters or sponsors or substantial shareholders and directors have given an 
undertaking that they shall not enter into any agreement for sale or transfer of their 
shares in any manner [other than as specified in these regulations.]
8
: 
(g) 
it has entered into a joint venture or technical collaboration arrangement with an 
internationally recognized credit rating institution 
9
[duly notified by the 
Commission from time to time]:
Provided that the joint venture or technical collaboration arrangement should 
include comprehensive review of rating policies, procedures and methodologies of 
the company at least once every three years:
Provided further that the Commission may allow the company to terminate 
its joint venture or technical collaboration agreement with the international credit 
rating institution after the completion of five years of such collaboration if it deems 
6
Substituted for the text “Companies Ordinance, 1984 (XLVII of 1984)” vide S.R.O. No.1223(I)/2019 dated October 10, 2019
7 Substituted for the text “Such shares shall not be sold or transferred without prior approval of the Commission” vide S.R.O. 
1755(I)/2022 dated September 19, 2022 
8 Substituted for the text “without prior approval of the Commission” vide S.R.O. 1755(I)/2022 dated September 19, 2022 
9
Inserted vide 
S.R.O.582(I)/2020 dated June 29, 2020.

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