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Karachi, May 06, 2013 (PPI-OT): This is with reference to our letter dated 31 January 2013 regarding the resolutions passed in the General Meeting of the Certificate Holders of the Fund for conversion of the Fund into an open-end scheme.
We are pleased to inform you the Securities and Exchange Commission of Pakistan has formally approved the conversion of First Capital Mutual Fund Limited into an open-end scheme in terms of Regulation 65(4) of the NBFCs and NEs Regulations, 2008, subject to certain conditions.
Copy of the SECP approval is attached for reference. You may please inform the members of the exchange.
Securities and Exchange Commission of Pakistan
Approval for Conversion of First Capital Mutual Fund Limited into an Open-End Scheme in Terms of Regulation 65 of the NBFC and NE Regulations, 2008.
Please refer to your letter dated February 14, 2013 and subsequent e-mail dated March 7, 2013 on the captioned subject.
In this regard, I am directed to convey that the Securities and Exchange Commission of Pakistan after considering your application in light of the notices of the EOGM, resolutions passed by the shareholders and minutes of the EOGM of First Capital Mutual Fund Limited (FCMPL) has approved the conversion of FCMFL (a closed end fund) into at Open-end Scheme in terms of Regulation 65(4) of the NBFCs and NEs Regulations, 2008, subject to the following conditions:
1. The effective date for the conversion of FCMFL into open end scheme shall be no later than July 1, 2013.
2. Conversion cost shall be charged to FCMF immediately on the effective date and shall not be amortized.
3. The Asset Management Company (AMC) shall submit constitutive documents of FCMF under trust structure for the approval of Commission and comply with all other relevant regulations before announcement of Book Closure date for the purpose of effective date for conversion.
4. Back end load charged as approved by the shareholders in the EOGM shall form part of trust property of FCMF.
5. The AMC shall comply with all the relevant laws/by-laws applicable on FCMFL as an Investment Company (IC) regarding its conversion and subsequent winding up/dissolution.
6. All the deposited property, assets and liabilities along with allied balances of FCMFL shall be transferred to the trustee of FCMF on the effective date.
7. The AMC shall immediately upon transfer of all the deposited property, assets and liabilities along with allied balances to the trustee of FCMF, appoint auditors (other than the existing auditors of the IC, custodian of IC and AMC) from amongst the panel of auditors designated as “A” category by State Bank of Pakistan.
The auditors so appointed shall report that all the documents, records, assets, liabilities, allied balances in IC on effective date are accurately and properly transferred to the trustee by the custodian and IC is a defunct company. The report of the auditor shall be submitted by the AMC to this office within 30 business days from the appointment of auditors.
8. Upon receipt of the auditor report, the AMC shall apply to the registrar of companies where FCMFL is registered as IC for striking off its name in terms of Section 439 of the Companies Ordinance, 1984.
The above said conditions shall be properly disclosed to the shareholders, custodian and to the stock exchanges where FCMFL is listed immediately upon receipt of this approval.
For more information, contact:
Javed Akhter Malik
Deputy Director
First Capital Investments Limited
Head Office: 2nd and 3rd Floor,
Pace Mall, Fortress Stadium,
Lahore, Pakistan
Tel: +92-42-36623005-6-8,
Fax: +92-42- 36623121-22,
Web: www.fcit.com.pk