Companies (Assets Backed Securitization Rules), 1999
The Companies (Asset Backed Securitization) Rules, 1999 were made by Securities and Exchange Policy Board in exercise of the powers conferred by section 506 of the Companies Ordinance, 1984 (XLVII of 1984), read with clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLVII of 1997).
The rules were made by the Securities and Exchange Policy Board. The term “Securitization”(under sub-rule i of rule 2) means a process whereby any special purpose vehicle raises funds by issue of term finance certificates or any other instruments with the approval of the Securities and Exchange Commission of Pakistan, for such purpose and uses such funds by making payment to the originator and through such process acquires the title, property or right in the receivables or other assets in the form of actionable claims. Any person intending to commence business as a special purpose vehicle is required to be registered with the SECP under the rules. An application for this purpose is made to the SECP. The SECP has the right to cancel the registration if found inconsistent with the requirements of the rules. The SECP may, from time to time, issue guidelines for carrying on the business of securitization.
