Government of pakistan securities and exchange commission of pakistan notification

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PART II
Statutory Notifications (S.R.O.)
GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN  
  
NOTIFICATION  
  
Islamabad, the 5
th
 August, 2016.  
  
  
S. R. O. 729(I)/2016. -  In exercise of powers conferred by sub-section (4) of section 169 
read with sections 68, 69, 75, 79, 80, 84 and 151 of the Securities Act, 2015, (Act No III of 2015), 
the Securities and Exchange Commission of Pakistan is pleased to make the following credit rating 
companies regulations, 2016, the same having been previously published vide Notification No. 
1145(I)(2015), dated the November 17, 2015, and placed on the website of the Commission as 
required by sub-section (4) of the said section namely:—
CHAPTER I  
  
Preliminary  
  
1. 
Short title and commencement- (1) These Regulations shall be called the Credit 
Rating Companies Regulations, 2016.
(2)
They shall come into force with immediate effect.
2. 
Definitions.- (1) In these regulations, unless there is anything repugnant in the 
subject or context, –
(a) 
“Act” means the Securities Act, 2015 (Act No. III of 2015);
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[(ab) “Companies Act” means the Companies Act, 2017 (XIX of 2017);]
(b) 
“credit rating” means a process of evaluating credit worthiness of a person which 
expresses its ability or willingness to meet financial obligations in full and on time;
(c) 
“credit rating company” means a public company licensed as a credit rating 
company by the Commission under section 69 of the Act;
(d) 
“external member” means any person who has been appointed by credit rating 
company as member of its rating committee and has no direct or indirect association 
with the credit rating company or any of its directors and sponsors;
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Inserted vide S.R.O. No.1223(I)/2019 dated October 10, 2019.

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(e) 
“equity “means total assets minus total liabilities excluding surplus on revaluation 
of fixed assets;
(g) 
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[Omitted] ;
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[ (gg) 
“Private Ratings” means a rating opinion not available in public domain.]; 
(h) 
“promoter or sponsor” means a person who has made an application to the 
Commission to form a credit rating company under these regulations and has 
contributed initial capital in the proposed company or a person who replaces him;
(i) 
“rating” means an opinion regarding securities or a person expressed in the form of 
standard symbols or in any other standardized manner, assigned by a credit rating 
company and includes credit rating; 
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[ 
(j)
Solicited Rating” means a rating granted by the credit rating company where the Rating 
Agreement is established with the entity; and 
(k) 
Un-solicited Ratings” means a rating not initiated at the request of the Rated Entity or 
its Agents or not maintained at the request of the Rated Entity or its Agents.] 
(2) Words and expressions used but not defined in these regulations shall have the same 
meaning as assigned to them in the Act, the 
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[Companies Act], the Securities and Exchange 
Commission of Pakistan Act, 1997 (XLII of 1997) or Central Depositories Act, 1997 (XIX of 
1997).