ISLAMABAD HIGH COURT, ISLAMABAD

(d) "Chancellor" means the Chancellor of the Institute;

(e) "college" means a constituent college or an affiliated college;

(f) "Commission" means the Higher Education Commission set up under the Higher Education Commission Act, 2002 (LIII of 2002);

(g) "constituent college" means an educational institution, by whatever name described, maintained and administered by the Institute;

(h) "Dean" means the head of a Faculty or the head of an academic body granted the status of a Faculty under this Act or by the statutes or regulations:

(i) "Department" means a teaching, department maintained and administered, or recognized by the institute in the manner prescribed;

(j) "Director" means the head of an institute established as a constituent institution by the Institute by statutes or regulations in terms of the powers delegated by this Act;

(k) "Faculty" means an administrative and academic unit of the Institute consisting of one or more departments, as prescribed;

(l) "Government" means the Federal Government;

(m) "Institute" means the NFC Institute of Engineering and Technology;

(n) "Institute teacher" means a whole-time teacher appointed and paid by the Institute, or recognized by the Institute as such;

(o) "NFC Institute" means the NFC Institute of Science and Technology, Multan;

(p) "prescribed" means prescribed by statutes, regulations or rules made under this Act;

(q) "Principal" means the head of a college;

(r) "Pro-chancellor" means the Pro-Chancellor of the Institute;

(s) "Representation Committees" means the Representation Committees constituted under Section 24;

(t) "Review Panel" means the Review Panel set up by the Chancellor in accordance with the provisions of Section 8;

(u) "Search Committee" means the Search Committee set up by the Senate under Section 12;

(v) "Senate" means the Senate of the Institute;

(w) ''statutes", "regulations" and "rules" means respectively the statutes, the regulations and the rules made under this Act and for the time being in force;

(x) "Syndicate" means the Syndicate of the Institute;

(y) "teachers" include Professors, Associate Professors, Assistant Professors and lecturers engaged whole-time by the Institute or by a constituent or affiliated college and such other persons as may be declared to be teachers by regulations; and

(z) "Vice-Chancellor" means the Vice-Chancellor of the Institute.

CHAPTER-II

THE INSTITUTE

3. Establishment of the Institute.—(1) The Institute of Engineering and Technology shall, from the date of publication of notifications in the official Gazette in this behalf, stand established in accordance with the provisions of this Act.

(2) The present regular or full-time employees discharging duties at NFC Institute shall be employed under the Institute under existing terms and conditions not less favorable than those prevailing at present. The students presently studying at NFC institute and registered with Bahauddin Zakariya University, Multan, shall stand shifted to the institute on its establishment.

(3) Notwithstanding anything contained in any other law for the time being in force and subject to the provision of Section 40, the NFC Institute shall on the establishment of the Institute, stand merged in the Institute.

(4) The Institute shall consist of the following, namely.—

(a) the Chancellor, the Pro-Chancellor, the members of the Senate and the Vice-Chancellor;

(b) the members of the Authorities of the Institute established under Section 16;

(c) all Institute teachers and persons recognized as students of the Institute in accordance with terms prescribed from to time; and

(d) all other full-time officers and members of the staff of the Institute.

(5) The Institute shall be a body corporate and shall have perpetual succession and a common seal, and may sue and be sued by the said name.

(6) The institute shall be competent to acquire and hold property, both movable and immovable, and to lease sell or otherwise transfer any movable and immovable property which may have become vested in or been acquired by it.

(7) Notwithstanding anything contained in any other law for the time being in force, the Institute shall have academic, financial and administrative autonomy, including the power to employ officers, teachers and other employees on such terms as may be prescribed, subject to the terms of this Act and the Higher Education Commission Act, 2002 (LIII of 2002). In particular, and without prejudice to the authority granted to the Commission by the law the Government or an authority or auditor appointed by the Government shall have no power to question the policy underlying the allocation of resources approved by the Senate in the annual budget of the Institute.

(8) All assets, properties, rights and interests of whatever kind, used, enjoyed, possessed, owned or vested in, or held in trust by and liabilities legally subsisting against the NFC Institute shall pass to the Institute established under this Act.

4. Powers and purpose of the Institute.—The institute shall have the following powers, namely—

(i) to provide for education and scholarship in such branches of knowledge, as it may deem fit, and to make provision for research, service to society and for the application, advancement and dissemination of knowledge in such manner as it may determine;

(ii) to prescribe courses of studies to be conducted by it and the colleges;

(iii) to hold examinations and to award and confer degrees, diplomas, certificates and other academic distinctions to and on persons who have been admitted to and have passed its examinations under prescribed conditions;

(iv) to prescribe the terms and conditions of employment of the officers, teachers and other employees of the Institute and to lay down terms and conditions that may be different from those applicable to Government servants in general;

(v) to engage, where necessary, persons on contracts of specified duration and to specify the terms of each engagement;

(vi) to confer honorary degrees or other distinctions on approved persons in the manner prescribed;

(vii) to provide for such instruction for persons not being students of the Institute as it may prescribe, and to grant certificates and diplomas to such persons;

(viii) to institute programmes for the exchange of students and teachers between the Institute and other universities, educational institutions and research organizations, inside as well as outside Pakistan;

(ix) to provide career counseling and job search services to students and alumni;

(x) to maintain linkages with alumni;

(xi) to develop and implement fund-raising plans;

(xii) to provide and support the academic development of the faculty of the Institute;

(xiii) to confer degrees on persons who have carried on independent research under prescribed conditions;

(xiv) to affiliate and disaffiliate educational institutions under prescribed conditions;

(xv) to inspect colleges and other educational institutions affiliated or seeking affiliation with it;

(xvi) to accept the examinations passed and the period of study spent by students of the Institute at other universities and places of learning equivalent to such examinations and periods of study in the Institute, as it may prescribe, and to withdraw such acceptance;

(xvii) to co-operate with other universities, public authorities or private organizations, inside as well as outside Pakistan, in such manner and for such purposes as it may prescribe;

(xviii) to institute Professorships, Associate Professorships, Assistant Professorships and Lectureships and any other posts and to appoint persons thereto;

(xix) to create posts for research, extension, administration and other related purposes and to appoint persons thereto;

(xx) to recognize selected members of the teaching staff of affiliated colleges or educational institutions admitted to the privileges of the Institute or such other persons as it may deem fit, as institute teachers;

(xxi) to institute and award financial assistance to students in need, fellowships, scholarships, bursanes, medals and prizes under prescribed conditions;

(xxii) to establish teaching departments, schools, colleges, faculties, institutes, museums and other centres of learning for the development of teaching and research and to make such arrangements for their maintenance; management and administration as it may prescribe;

(xxiii) to provide for the residence of the students of the institute and the colleges, to institute and maintain halls of residence and to approve or license hostels and lodging;

(xxiv) to maintain order, discipline and security on the campuses of the Institute and the colleges;

(xxv) to promote the extra curricular and recreational activities of such students, and to make arrangements for promoting their health and general welfare;

(xxvi) to demand and receive such fees and other charges as it may determine;

(xxvii) to make provision for research, advisory or consultancy services and with these objects to enter into arrangements with other institutions, public or private bodies, commercial and industrial enterprises under prescribed conditions;

(xxviii) to enter into, carry out, vary or cancel contracts;

(xxix) to receive and manage property transferred and grants, contributions made to the Institute and to invest any fund representing such property, grants, bequests, trusts, gifts, donations, endowments or contributions in such manner as it may deem fit;

(xxx) to provide for the printing and publication of research and other works; and

(xxxi) to do all such other acts and things, whether incidental to the powers aforesaid or not, as may be requisite or expedient in order to further the objectives of the institute as a place of education, learning, and research.

5. Institute open to all classes, creeds, etc.—(1) The institute shall be open to all persons of either gender and of whatever religion, race, caste, creed, class, colour or domicile and no person shall be denied the privileges of the institute on the grounds of religion, race, caste, creed, class, colour or domicile.

(2) An increase in any fee or charge that is in excess of ten per cent per annum on an annualized basis from the last such increase may not be made except in special circumstances, and only with the approval of the Syndicate.

(3) The Institute shall institute financial aid programmes for students in need, to the extent considered feasible by the Syndicate given the resources available, so as to enable admission and access to the Institute and the various opportunities provided by it to be based on merit rather than ability to pay.

6. Teaching at the Institute.—(1) All recognized teaching in various courses shall be conducted by the Institute or the colleges in the prescribed manner and may include lectures, tutorials, discussions, seminars, demonstrations, distance learning and other methods of instruction as well as practical work in the laboratories, hospitals, workshops and other governmental or private organizations.

(2) The authority responsible for organizing recognized teaching shall be such as may be prescribed.

CHAPTER-III
OFFICERS OF THE INSTITUTE

7. Principal Officers.—The following shall be the principal officers of the Institute, namely:—

(a) The Chancellor;

(b) The Pro-Chancellor;

(d) The Deans;

(e) The Principals of the constituent colleges;

(f) The Chairpersons of the teaching departments;

(g) The Registrar;

(h) The Treasurer;

(i) The Controller of Examinations; and

(j) Such other persons as may be prescribed by the statutes or regulations to be the principal officers of the Institute.

8. Chancellor.—(1) The President of Pakistan shall be the Chancellor of the institute and the Chairperson of the Senate.

(2) The Chancellor shall, when present, preside at the meetings of the Senate and the Convocation of the Institute. In the absence of the Chancellor, the Senate may request Pro-Chancellor to preside over the Convocation of the Institute and meetings of the Senate.

(3) The members of the Senate as well as the Vice-Chancellor shall be appointed by the Chancellor from amongst the persons recommended by the Representation Committee set up for this purpose or the Search Committee established in accordance with this Act and the statutes, as the case may be.

(4) Every proposal to confer an honorary degree shall be subject to confirmation by the Chancellor.

(5) If the Chancellor is satisfied that serious irregularity or mismanagement with respect to the affairs of the Institute has occurred he may,—

(a) as regards proceedings of the Senate, direct that specified proceedings be reconsidered and appropriate action taken within one month of the direction having been issued:

Provided that if the Chancellor is satisfied that either no reconsideration has been carried out or that the reconsideration has failed to address the concern expressed he may, after calling upon the Senate to show cause in writing, appoint a five member Review Panel to examine and report to the Chancellor on the functioning of the Senate. The report of the Review Panel shall be submitted within such time as may be prescribed by the Chancellor. The Review Panel shall be drawn from persons of eminence in academics and in the fields of law, accountancy and administration; and

(b) as regards proceedings of any Authority or with respect to matters within the competence of any Authority other than the Senate, direct the Senate to exercise powers under Section 19.

9. Removal from the Senate.—(1) The Chancellor may, upon the recommendation of the Review Panel, remove any person from the membership of the Senate on the ground that such person,—

(a) has become of unsound mind;

(b) has become incapacitated to function as member of the Senate;

(d) has absented himself from two consecutive meetings without just cause; or

(e) has been guilty of misconduct, including use of position for personal advantage of any kind, or gross inefficiency in the performance of functions.

(2) The Chancellor shall remove any person from the memberships the Senate on a resolution calling for the removal of such person supported by at least three-fourths of the membership of the Senate:

Provided that before passing such resolution the Senate shall provide the member concerned a fair hearing:

Provided further that the provisions of this section shall not be applicable to the Vice-chancellor in his capacity as a member of the Senate.

10. The Pro-Chancellor.—(1) The Chairman National Fertilizer Corporation of Pakistan shall be the ex-officio Pro-Chancellor of the institute.

(2) The Pro-Chancellor shall perform functions of the Chancellor in the absence of Chancellor and such other functions as may be entrusted to him by the Chancellor. He shall also be responsible for overall administrative control of the Institute.

11. Vice-Chancellor.—(1) There shall be a Vice-Chancellor of the Institute who shall be an eminent academic and shall be appointed on such terms and conditions as may be prescribed.

(2) The Vice-Chancellor shall be the Chief Executive Officer of the Institute responsible for all academic functions of the Institute and for ensuring that the provisions of this Act, statutes, regulations and rules are faithfully observed in order to promote the general efficiency and good order of the Institute. The Vice-Chancellor shall have all powers prescribed for this purpose, including administrative control over the officers, teachers and other employees of the Institute.

(3) The Vice-Chancellor shall, if present, be entitled to attend any meeting of any Authority or body of the Institute.

(4) The vice-Chancellor may, in an emergency that in his opinion requires immediate action ordinarily not in the competence of the Vice-Chancellor, take such action and forward a report of the action taken to the Pro-Chancellor who may direct such further action as is considered appropriate.

(5) The Vice-Chancellor shall, also have the following powers, namely—

(a) to direct teachers, officers and other employees of the Institute to take up such assignments in connection with examination, administration, and such other activities in the Institute as he may consider necessary for the purposes of the Institute;

(b) to sanction by re-appropriation an amount not exceeding an amount prescribed by the Senate for an unforeseen item not provided for in the budget and report it to the Pro-Chancellor immediately and to Senate at the next meeting;

(c) to recommend appointments of such categories of employees of the Institute and in such manner as may be prescribed by the statutes;

(d) to recommend suspension, punishment and removal, in accordance with prescribed procedure, from service officers;

(e) to delegate with the approval of Pro-Chancellor any of his powers under this Act to an officer or officers of the Institute; and

(f) to exercise and perform such other powers and functions as may prescribed be prescribed.

(6) The Vice-Chancellor shall preside at the Convocation of the institute in the absence of the Chancellor and Pro-Chancellor.

(7) The Vice-Chancellor shall present an annual report before the Senate within three months of the close of the academic year. The annual report shall present such information as regards the academic year under review as may be prescribed, including disclosure of all relevant facts pertaining to,—

(a) academics;

(b) research;

(d) finances.

(8) The Vice-Chancellor's annual report shall be made available, prior to its presentation before the Senate, to all officers and Institute teachers and shall be published in such numbers as are required to ensure its wide circulation.

12. Appointment and removal of the Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Chancellor on the basis of recommendations made by the Senate.

(2) A Search Committee for the recommendation of persons suitable for appointment as Vice-Chancellor shall be constituted by the Senate on the date and in the manner prescribed by the statutes and shall consist of two eminent members of society nominated by the Chancellor of whom one shall be appointed the Convener, two members of the Senate, two distinguished Institute teachers who are not members of the Senate and one academic of eminence not employed by the Institute. The two distinguished Institute teachers shall be selected by the Senate through a process, to be prescribed by statute that provides for the recommendation of suitable names by the Institute teachers in general. The Search Committee shall remain in existence till such time that the appointment of the next Vice-Chancellor has been made by the Chancellor.

(3) The persons proposed by the Search Committee for appointment as Vice-Chancellor shall be considered by the Senate and of these a panel of three, in order of priority shall be recommended by the Senate to the Chancellor:

Provided that the Chancellor may decline to appoint any of the three persons recommended and seek recommendation of a fresh panel. In the event of a fresh recommendation being sought by the Chancellor the Search Committee shall make a proposal to the Senate in the prescribed manner.

(4) The Vice-Chancellor shall be appointed for a renewable tenure of four years on terms and conditions prescribed by statute. The tenure of an incumbent Vice Chancellor shall be renewed by the Chancellor on receipt of a resolution of the Senate in support of such renewal:

Provided that the Chancellor may call upon the Senate to reconsider such resolution once.

(5) The Senate may, pursuant to a resolution in this behalf passed by three fourths of its membership, recommend to the Chancellor through the Pro-Chancellor the removal of the Vice-Chancellor on the ground of inefficiency, moral turpitude or physical or mental incapacity or gross misconduct, including misuse of position for personal advantage of any kind:

Provided that the Chancellor may, on his own or on the request of the Pro-Chancellor, make a reference to the Senate stating the instances of inefficiency, moral turpitude or physical or mental incapacity or gross misconduct on the part of the Vice-Chancellor that have come to his notice. After consideration of the reference the Senate may, pursuant to a resolution in this behalf passed by two-thirds of its membership, recommend to the Chancellor the removal of the Vice-Chancellor:

Provided further that prior to a resolution for the removal of the Vice-Chancellor being voted upon the Vice-Chancellor shall be given an opportunity of being heard.

(6) A resolution recommending the removal of the Vice-Chancellor shall be submitted to the Chancellor forthwith. The Chancellor may accept the recommendation and order removal of the Vice-Chancellor or return the recommendation to the Senate.

(7) At any time when the office of the Vice-Chancellor is vacant, or the Vice-Chancellor is absent or its unable to perform the functions of his office due to illness or some other cause, the Pro-Chancellor shall make such arrangements for the performance of the duties of the Vice-Chancellor as he may deem fit.

13. Registrar.—(1) There shall be a Registrar of the institute to be appointed by the Senate on the recommendation of the Vice-Chancellor, on such terms and conditions as may be prescribed.

(2) The experience as well as the professional and academic qualifications necessary for appointment to the post of the Registrar shall be as may be prescribed.

(3) The Registrar shall be a full-time officer of the institute and shall,—

(a) be the administrative head of the secretariat of the Institute and be responsible for the provision of secretariat support to the Authorities of the Institute;

(b) be the custodian of the common seal and the academic records of the Institute;

(d) supervise the process of election, appointment or nomination of members to the various Authorities and other bodies in the prescribed manner; and

(e) perform such other duties as may be prescribed.

(4) The terms of office of the Registrar shall be a renewable period of three years:

Provided that the Senate may, on the advice of the Vice-Chancellor, terminate the appointment of the Registrar on grounds of inefficiency or misconduct in accordance with prescribed procedure.

14. Treasurer.—(1) There shall be a Treasurer of the Institute to be appointed by the Senate on the recommendation of the Vice-Chancellor, on such terms and conditions as may be prescribed.

(2) The experience and the professional and academic qualifications necessary for appointment to the post of the Treasurer shall be as may be prescribed.

(3) The Treasurer shall be the Chief Financial Officer of the Institute and shall—

(a) manage the assets, liabilities, receipts, expenditures, funds and investments of the institute;

(b) prepare the annual and revised budget estimates of the Institute and present them to the Syndicate or a committee thereof for approval and incorporation in the budget to be presented to the Senate;

(d) have the accounts of the Institute audited annually so as to be available for submission to the Senate within six months of the close of the financial year; and

(e) perform such other duties as may be prescribed.

(4) The term of office of the Treasurer shall be a renewable period of three years:

Provided that the Senate may, on the advice of the Vice-Chancellor, terminate the appointment of the Treasurer on grounds of inefficiency or misconduct in accordance with prescribed procedure.

15. Controller of Examinations.—(1) There shall be a Controller of Examinations, to be appointed by the Senate on the recommendation of the Vice-Chancellor, on such terms and conditions as may be prescribed.

(2) The minimum qualifications necessary for appointment to the post of the Controller of Examinations shall be as may be prescribed.

(3) The Controller of Examinations shall be a full-time officer of the Institute and shall be responsible for all matters connected with the conduct of examinations and perform such other duties as may be prescribed.

(4) The Controller of Examinations shall be appointed for a renewable term of three years:

Provided that the Senate may, on the advice of the Vice-Chancellor terminate the appointment of the Controller of Examinations on grounds of inefficiency or misconduct in accordance with prescribed procedure.

CHAPTER-IV
AUTHORITIES OF THE INSTITUTE

16. Authorities.—(1) The following shall be the Authorities of the Institute, namely:—

(a) Authorities established by this Act,—

(i) the Senate;

(ii) the Syndicate; and

(iii) the Academic Council; and

(b) Authorities to be established by the statutes,—

(i) Graduate and Research Management Council;

(ii) Recruitment, Development, Evaluation and Promotion committees for teachers and other staff whether at the level of the department, the Faculty or the Institute;

(iii) Career Placement and Internship Committee of each Faculty;

(iv) Search Committee for the appointment of the Vice-Chancellor;

(v) the Representation Committees for appointment to the Senate, Syndicate and the Academic Council;

(vi) Faculty Council; and

(vii) Departmental Council.

(2) The Senate, the Syndicate and the Academic Council may set up such other committees or sub-committees, by whatever name described, as are considered desirable through statutes, or regulations as appropriate. Such committees or sub-committees shall be Authorities of the Institute for the purposes of this Act.

17. Senate.—(1) The body responsible for the governance of the Institute shall be described as the Senate, and shall consist of the following, namely:—

(a) the Chancellor who shall be the Chairperson of the Senate;

(b) the Pro-Chancellor;

(d) one member of the Government not below the rank of Additional Secretary from the Ministry of Industries and Production;

(e) two representatives of the National Fertilizer Corporation of Pakistan;

(f) four persons from society at large being persons of distinction in the field of administration, management, education, academics, law, accountancy, medicine, fine arts, architecture, agriculture, science, technology and engineering such that the appointment of these persons reflects a balance across the various fields:

Provided that the special focus or affiliation of the institute, to be declared in the manner prescribed, may be reflected in the number of persons of distinction in an area of expertise relevant to the Institute who are appointed to the Senate:

(g) one person from amongst the alumni or the Institute;

(h) two persons from the academic community of the country, other than an employee of the Institute, at the level of professor or principal of a college;

(i) four institute teachers; and

(j) one person nominated by the Commission.

(2) The numbers of the members of the Senate described against clauses (g) to (j) of sub-section (1) may be increased by the Senate through statutes subject to condition that the total membership of the Senate does not exceed twenty one, with a maximum of five Institute teachers, and the increase is balanced, to the extent possible, across the different categories specified in sub-section (1).

(3) All appointments to the Senate shall be made by the Chancellor. Appointments of persons described in clauses (g) and (h) of sub-section (1) shall be made from amongst a panel of three names for each vacancy recommended by the Representation Committee set up in terms of Section 24 and in accordance with procedure as may be prescribed:

Provided that effort shall be made, without compromising on quality or qualification, to give fair representation to women on the Senate:

Provided further that as regards the Institute teachers described in clause (I) of sub-section (1) the Senate shall prescribe a procedure for appointment on the basis of elections that provide for voting by the various categories or Institute teachers:

Provided also that the Senate may alternatively prescribe that appointment of Institute teachers to the Senate shall also be in the manner provided by this subsection for the persons described in clauses (g) and (h) of sub-section (1).

(4) Members of the Senate, other than ex-officio members, shall hold office for three years. One-third of the members, other than ex-officio members, of the first Senate, to be determined by lot, shall retire from office on the expiration of one year from the date of appointment by the Chancellor. One-half of the remaining members, other than ex-officio members, of the first Senate, to be determined by lot, shall retire from office on the expiration of two years from the date of appointment and the remaining one-half, other than ex-officio members, shall retire from office on the expiration of the third year:

Provided that no person, other than an ex-officio member, may serve on the Senate for more than two consecutive terms:

Provided further that the Institute teachers appointed to the Senate may not serve for two consecutive terms.

(5) The Senate shall meet at least twice in a calendar year.

(6) Service on the Senate shall be on honorary basis:

Provided that actual expenses may be reimbursed as prescribed.

(7) The Registrar shall be the Secretary of the Senate.

(8) Unless otherwise prescribed by this Act, all decisions of the Senate shall be taken on the basis of the opinion of a majority of the members present. In the event of the members being evenly divided on any matter the-person presiding over the meeting shall have a casting vote.

(9) The quorum for a meeting of the Senate shall be two-thirds of its membership, a fraction being counted as one.

18. Powers and functions of the Senate.—(1) The Senate shall have the power of general supervision over the Institute and shall hold the Vice-Chancellor and the Authorities accountable for all the functions of the Institute. The Senate shall have all powers of the Institute not expressly vested in an Authority or officer by this Act and all other powers not expressly mentioned by this Act that are necessary for the performance of its functions.

(2) Without prejudice to the generality of the foregoing powers, the Senate shall have the following powers—

(a) to approve the proposed annual plan of work, the annual and revised budgets, the annual report and the annual statement of account;

(b) to hold, control and lay down policy for the administration of the property, funds and investments of the Institute, including the approval of the sale and purchase or acquisition of immovable property;

(c) to oversee the quality and relevance of the institute's academic programmes and to review the academic affairs of the Institute in general;

(d) to approve the appointment of the Deans, Professors, Associate Professors and such other senior faculty and senior administrators as may be prescribed;

(e) to institute schemes, directions and guidelines for the terms and conditions of appointment of all officers, teachers and other employees of the Institute;

(f) to approve strategic plans;

(g) to approve financial resource development plans of the Institute;

(h) to consider the drafts of statutes and regulations proposed by the Syndicate and the Academic Council and deal with them in the manner as provided for in Sections 26 and 27, as the case may be:

Provided that the Senate may make a statute or regulation on its own initiative and approve it after calling for the advice of the Syndicate or the Academic Council, as the case may be;

(i) to annul by order in writing the proceedings of any Authority or officer if the Senate is satisfied that such proceedings are not in accordance with the provisions of this Act, statutes or regulations;

(j) after calling upon such Authority or officer to show-cause why such proceedings should not be annulled;

(k) to recommend to the Chancellor removal of any member of the Senate in accordance with the provisions of this Act;

(l) to make appointment of members of the Syndicate, other than ex-officio members, in accordance with the provisions of this Act;

(m) to make appointment of members of the Academic Council, other than ex-officio members, in accordance with the provisions of this Act;

(n) to appoint Emeritus Professors on such terms and conditions as may be prescribed;

(o) to remove any person from the membership of any Authority if such person, —

(i) has become of unsound mind;

(ii) has become incapacitated to function as member of such Authority; or

(iii) has been convicted by a Court of law for an offence involving moral turpitude; and

(p) to determine the form, provide for the custody and regulate the use of the common seal of the Institute.

(3) The Senate may, subject to the provisions of this Act delegate all or any of the powers and functions of any Authority, officer or employee of the Institute at its main campus, to any Authority, committee, officer or employee at its additional campus for the purpose of exercising such powers and performing such functions in relation to such additional campus, and for this purpose the Senate may create new posts or positions at the additional campus.

19. Visitations.—The Senate may, in accordance with the terms and procedures as may be prescribed, cause an inspection to be made in respect of any matter connected with the Institute.

20. Syndicate.—(1) There shall be a Syndicate of the institute consisting of the following:—

(a) the Vice-Chancellor who shall be its Chairperson;

(b) the Deans of the Faculties of the Institute;

(c) three professors from different departments, who are not members of the Senate, to be elected by the Institute teachers in accordance with procedure to be prescribed by the Senate;

(d) Principals of the constituent colleges;

(e) the Registrar;

(f) the Treasurer; and

(g) the Controller of Examinations.

(2) Members of the Syndicate, other than ex-officio members, shall hold office for three years.

(3) As regards the three professors described in clause (c) of sub-section (1) the Senate may, as an alternative to elections, prescribe a procedure for proposal of a panel of names by the Representation Committee set up in terms of Section 24. Appointment of persons proposed by the Representation Committee may be made by the Senate on the recommendation of the Vice-Chancellor.

(4) The quorum for a meeting of the Syndicate shall be one half of the total number of members, a fraction being counted as one.

(5) The Syndicate shall meet at least once in each quarter of the year.

21. Powers and duties of the Syndicate.—(1) The Syndicate shall be the executive body of the Institute and shall, subject to the provisions of this Act and the statutes, exercise general supervision over the affairs and management of the Institute.

(2) Without prejudice to the generality of the foregoing powers, and subject to the provisions of this Act, the statutes and directions of the Senate, the Syndicate shall have the following powers—

(a) to consider the annual report, the annual and revised budget estimates and to submit these to the Senate;

(b) to transfer and accept transfer of movable property on behalf of the Institute;

(d) to cause proper books of account to be kept for all sums of money received and expended by the Institute and for the assets and liabilities of the Institute;

(e) to invest any money belonging to the Institute including any unapplied income in any of the securities described in Section 20 of the Trusts Act, 1882 (Act II of 1882), or in the purchase of immovable property or in such other manner, as it may prescribe, with the like power of varying such investments;

(f) to receive and manage any property transferred, grants, bequests, trust, gifts, donations, endowments and other contributions made to the Institute;

(g) to administer any funds placed at the disposal of the institute for specified purposes;

(h) to provide the buildings, libraries, premises, furniture, apparatus, equipment and other means required for carrying out the work of the Institute;

(i) to establish and maintain halls, residence and hostels or approve or license hostels or lodgings for the residence of students;

(j) to recommend to the Senate affiliation or disaffiliation of colleges;

(k) to recommend to the Senate admission of educational institutions to the privileges of the Institute and withdraw such privileges;

(l) to arrange for the inspection of colleges and the departments;

(m) to institute Professorships, Associate Professorships, Assistant Professorships, Lectureships, and other teaching posts or to suspend or to abolish such posts;

(n) to create, suspend or abolish such administrative or other posts as may be necessary;

(o) to prescribe the duties of officers, teachers and other employees of the Institute;

(p) to report to the Senate on matters with respect to which it has been asked to report;

(q) to appoint members to various Authorities in accordance with the provisions of this Act;

(r) to propose drafts of statutes for submission to the Senate;

(s) to regulate the conduct and discipline of the students of the Institute;

(t) to take actions necessary for the good administration of the Institute in general and to this end exercise such powers as are necessary;

(u) to delegate any of its powers to any Authority or officer or a committee; and

(v) to perform such other functions as have been assigned to it by the provisions of this Act or may be assigned to it by the statutes.

22. Academic Council.—(1) There shall be an Academic Council of the Institute consisting of the following:--

(a) the Vice-Chancellor who shall be its Chairperson;

(b) the Deans of Faculties and such Heads of departments as may be prescribed;

(c) five members representing the departments and the constituent colleges to be elected in the manner prescribed by the Senate;

(d) two Principals of affiliated colleges;

(e) five Professors including Emeritus Professors;

(f) the Registrar;

(g) the Controller of Examinations; and

(h) the Librarian.

(2) The Senate shall appoint the members of the Academic Council, other than the ex-officio and the elected members, on the recommendation of the Vice-Chancellor:

Provided that as regards the five professors and the members representing the departments and the constituent colleges the Senate may, as an alternative to elections; prescribe a procedure for proposal of a panel of names by the Representation Committee set up in terms of Section 24. Appointment of persons proposed by the Representation Committee may be made by the Senate on the recommendation of the Vice-Chancellor.

(3) Members of the Academic Council shall hold office for a period of three years.

(4) The Academic Council shall meet at least once in each quarter.

(5) The quorum for meetings of the Academic Council shall be one half of the total number of members; a fraction being counted as one.

23. Powers and functions of the Academic Council.—(1) The Academic Council shall be the principal academic body of the Institute and shall, subject to the provisions of this Act and the statutes have the power to lay down proper standards of instruction, research and examinations and to regulate and promote the academic life of the Institute and the colleges.

(2) Without prejudice to the generality of the foregoing powers, and subject to the provisions of this Act and the statutes, the Academic Council shall have the power to,—

(a) approve the policies and procedures pertaining to the quality of academic programmes;

(b) approve academic programmes;

(c) approve the policies and procedures pertaining to student related functions including admissions, expulsions, punishments, examinations and certification;

(d) approve the policies and procedures assuring quality of teaching and research;

(e) recommend the policies and procedures for affiliation of other educational institutions;

(f) propose to the Syndicate schemes for the Constitution and organization of Faculties, teaching departments and boards of studies;

(g) appoint paper setters and examiners for all examinations of the Institute after receiving panels of names from the relevant authorities;

(h) institute programmes for the continued professional development of Institute teachers at all levels;

(i) recognize the examinations of other universities or examining bodies as equivalent to the corresponding examinations of the Institute;

(j) regulate the award of studentships, exhibitions, medals and prizes;

(k) make regulations for submission to the Senate;

(l) prepare an annual report on the academic performance of the Institute; and

(m) perform such functions as may be prescribed by regulations.

24. Representation Committees.—(1) There shall be a Representation Committee constituted, by the Senate through statute for recommendation of persons for appointment to the Senate in accordance with the provisions of Section 17.

(2) There shall also be a Representation Committee constituted by the Senate through statute for the recommendation of persons for appointment to the Syndicate and the Academic Council in accordance with the provisions of Sections 20 and 22.

(3) Members of the Representation Committee for appointments to the Senate shall consist of the following:—

(a) three members of the Senate of one is from the National Fertilizer Corporation of Pakistan who are not Institute teachers;

(b) two persons nominated by the institute teachers from amongst themselves in the manner prescribed;

(c) one person from the academic community, not employed by the Institute, at the level of professor or college Principal to be nominated by the Institute teachers in the manner prescribed; and

(d) one eminent citizen with experience in administration, philanthropy, development work, law or accountancy to be nominated by the Senate.

(4) The Representation Committee for appointments to the Syndicate and the Academic Council shall consist of the following:—

(a) two members of the Senate of one from NFC who are not Institute teachers; and

(b) three persons nominated by the Institute teachers from amongst themselves in the manner prescribed.

(5) The tenure of the Representation Committees shall be three years:

Provided that no member shall serve for more than two consecutive terms.

(6) The procedures of the Representation Committees shall be as may be prescribed.

(7) There may also be such other Representation Committees set up by any of the other Authorities as are considered appropriate for recommending persons for appointment to the various Authorities and other bodies of the Institute.

25. Appointment of committees by certain Authorities.—(1) The Senate, the Syndicate, the Academic Council and other Authorities may, from time to time, appoint such standing, special or advisory committees, as they may deem fit, and may place on such committee persons who are not members of the Authorities appointing the committees.

(2) The constitution, functions and powers of the Authorities for which no specific provision has been made in this Act shall be such as may be prescribed by statutes or regulations.

CHAPTER V
STATUTES, REGULATIONS AND RULES

26. Statutes.—(1) Subject to the provisions of this Act, statutes, to be published in the official Gazette, may be made to regulate or prescribe all or any of the following matters:—

(a) the contents of and the manner in which the annual report, to be presented by the Vice-Chancellor before the Senate, shall be prepared.

(b) the University fees and other charges;

(d) the scales of pay and other terms and conditions of service of officers, teachers and other Institute employees;

(e) the maintenance of the register of registered graduates;

(f) affiliation and disaffiliation of educational institutions and related mutters;

(g) admission of educational institutions to the privileges of the Institute and the withdrawal of such privileges;

(h) the establishment of Faculties, departments, colleges and other academic divisions;

(i) the powers and duties of officers and teachers;

(j) conditions under which the Institute may enter into arrangements with other institutions or with public bodies for the purposes of research and advisory services;

(k) conditions for appointment of Emeritus Professors and award of honorary degrees;

(l) efficiency and discipline of Institute employees;

(m) the constitution and procedure to be followed by Representation Committees in carrying out functions in terms of this Act;

(n) the constitution and procedure to be followed by the Search Committee for appointment of the Vice-Chancellor;

(o) constitution, functions and powers of the Authorities; and

(p) all other matters which by this Act are to be or may be prescribed or regulated by statutes.

(2) The draft of statutes shall be proposed by the Syndicate to the Senate which may approve with such modifications as the Senate may think fit or may refer back to the Syndicate, as the case may be, for reconsideration of the proposed draft:

Provided that statutes concerning any of the matters mentioned in, clauses (a) and (1) of sub-section (1) shall be initiated and approved by the Senate, after seeking the views of the Syndicate:

Provided further that the Senate may initiate a statute with respect to any matter in its power or with respect to which a statute may be made in terms of this Act and approve such statute after seeking the views of the Syndicate.

27. Regulations.--(1) Subject to the provisions of this Act and the statute, the Academic Council may make regulations, to be published in the official Gazette, for all or any of the following matters:—

(a) the courses of study for degrees, diplomas and certificates of the Institute;

(b) the manner in which the teaching referred to in sub-section (1) of Section 6 shall be organized and conducted;

(d) the conditions under which students shall be admitted to the courses and the examinations of the institute and shall become eligible for the award of degrees, diplomas and certificates;

(e) the conduct of examinations;

(f) conditions under which a person may carry or, independent research to entitle him to a degree;

(g) the institution of fellowships, scholarships, exhibitions, medals and prizes;

(h) the use of the Library;

(i) the formation of Faculties, departments and Board of Studies; and

(j) all other matters which by this Act or the statutes are to be or may be prescribed by regulations.

(2) Regulations shall be proposed by the Academic Council and shall be submitted to the Senate which may approve them or withhold approval or refer them back to the Academic Council for reconsideration. A regulation proposed by the Academic Council shall not be effective unless it receives the approval of the Senate.

(3) Regulations regarding or incidental to matters contained in sub-clauses (g) and (i) shall not be submitted to the Senate without the prior approval of the Syndicate.

28. Rules.—(1) The Authorities and the other bodies of the Institute may make rules, to be published in the official Gazette, consistent with Act, to regulate any matter relating to the affairs of the Institute which has not been provided for by this Act or that is not required to be regulated by statutes or regulations, including rules to regulate the conduct of business and the time and place of meetings and related matters.

(2) Rules shall become effective upon approval by the Syndicate.

CHAPTER-VI
INSTITUTE FUND

29. Institute fund.—The Institute shall have a fund to which shall be credited its income from fees, charges, donations, trusts, bequests, endowments, contributions, grants and all other sources.

30. Audits and accounts.—(1) The Accounts of the Institute shall he maintained in such form and in such manner as may be prescribed.

(2) The teaching departments, constituent colleges or institutes and all other bodies designated as such by the Syndicate in terms of statutes shall be independent cost centres of the Institute with authority vested in the head of each cost centre to sanction expenditure out of the budget allocated to it. Provided that re-appropriation from one head of expenditure to another may be made by the head of a cost centre in accordance with and to the extent prescribed by the statutes.

(3) All funds generated by a teaching department, constituent college or other unit of the Institute through consultancy, research or other provision of service shall be made available without prejudice to the budgetary allocation otherwise made, after deduction of overheads in the manner and to the extent prescribed by statute; to the teaching department, constituent college or other unit for its development. A part of the funds so generated may be shared with the Institute teachers or researchers in charge of the consultancy, research or service concerned in the manner and to the extent prescribed by statute.

(4) No expenditure shall be made from the funds of the Institute, unless a bill for its payments has been issued by the head of the cost centre concerned in accordance with the relevant statutes and the Treasurer has verified that the payment is provided for in the approved budget of the cost centre, subject to the authority to re-appropriate available to the head of the cost centre.

(5) Provision shall be made for an internal audit of the finances of the Institute.

(6) Without prejudice to the requirement of audit by an auditor appointed by Government in accordance with the provisions of any other law in force, the annual audited statement of accounts of the Institute shall be prepared in conformity with the Generally Accepted Accounting Principles (GAAP) by a reputed firm of chartered accountants and signed by the Treasurer. The annual audited statement of accounts so prepared shall be submitted to the Auditor General of Pakistan for his observations.

(7) The observations of the Auditor General of Pakistan, if any, together with such annotations as the Treasurer may make, shall be considered by the Syndicate and shall be placed before the Senate within six months of closing of the financial year.

CHAPTER-VII
GENERAL PROVISIONS

31. Opportunity to show-cause.—Except as otherwise provided by law, no officer, teacher or other employee of the Institute holding a permanent post shall be reduced in rank, or removed or compulsorily retired from service for cause arising out of any act or omission on the part of the person concerned unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken.

32. Appeal to the Syndicate and the Senate.—Where an order is passed punishing any officer (other than the Vice-Chancellor), teacher or other employee of the Institute or altering or interpreting to his disadvantage the prescribed terms or conditions of his service, he shall, if the order is passed by any officer or teacher of the Institute other than the Vice-Chancellor, have the right to appeal to the Syndicate against the order, and if the order is passed by the Vice-Chancellor, have the right to appeal to the Senate.

33. Terms of service and remedy.—(1) Any person aggrieved by the decision or order of the Institute may seek remedy from the Civil Court of competent jurisdiction:

Provided that any provision as regards the terms and conditions of employment of persons in the service of Pakistan in general or in comparable employment notwithstanding the service of persons employed by the Institute shall be entirely governed by the terms and conditions prescribed by the relevant statutes.

(2) An officer, teacher or other employee of the Institute shall retire from service on the attainment of such age or tenure of service as may be prescribed.

(3) No adverse change shall be made in the terms and conditions of employment of any Institute teacher in the employment of the Institute on the date of commencement of this Act.

34. Benefits and insurance.—(1) The Institute shall constitute for the benefit of its officers, teachers and other employees schemes, as may be prescribed, for the provision of post-employment benefits as well as health and life insurance while in service.

(2) Where any provident fund has been constituted under this Act, the provisions of the Provident Fund Act, 1925 (XIX of 1925), shall apply to such fund as if it were the Government Provident Fund.

35. Commencement of term of office of members of Authority.—(1) When a member of a newly constituted Authority is elected, appointed or nominated, his term of office, as fixed under this Act, shall commence from such date as may be prescribed.

(2) Where a member who has accepted any other assignment or for any other similar reason remains absent from the Institute for a period of not less than six months he shall be deemed to have resigned and vacated his seat.

36. Filling of casual vacancies in Authorities.—Any casual vacancy among the members of any Authority shall be filled, as soon as conveniently may be, in the same manner and by the same person or Authority that had appointed the member whose place has become vacant and the person appointed to the vacancy shall be a member of such Authority for the residue of the term for which the person whose place he fills would have been a member.

37. Flaws in the constitution of Authorities.—Where there is a flaw in the constitution of an Authority as constituted by this Act, the statutes or the regulations on account of the abolition of a specified office under Government or because an organization, institution or other body outside the Institute has been dissolved or has ceased to function, or because of some other similar reason, such flaw shall be removed in such manner as the Senate may direct.

38. Proceedings of Authorities not invalidated by the vacancies.—No Act, resolution or decision of any Authority shall be invalid by reason of any vacancy on the Authority doing, passing, or making it or by reason of any want of qualification or invalidity in the election, appointment or nomination of any de facto member of the Authority, whether present or absent.

39. First statutes and regulations.—Notwithstanding anything to the contrary contained in this Act, the President of Pakistan shall promulgate the first statues and regulations which shall be deemed to be statutes and regulations made under Sections 26 and 27 and shall continue to remain in force until amended or replaced by new statutes and regulations in accordance with the provisions of this Act.

40. Repeal and savings.—Notwithstanding anything contained in any other law, the certificate of incorporation of the NFC institute issued vide No. JRL/1840 dated the 30th August, 1994, shall stand repealed from such date as may be notified by the Government in the official Gazette:

Provided that the Government may save, through appropriate provision in the repealing notifications, such acts or other legislative instruments constituting the NFC institute as are necessary for preservation of such specific features that are essential given the nature of the Institute and are not in conflict with the management and governance structure laid down by this Act or for continuation of the legal status of an institute, college or other constituent unit of the Institute as on the date of the notification in the official Gazette.

41. Transitory provisions.—(1) Notwithstanding anything contained in this Act, on the establishment of the Institute, the Senate shall be structured which shall initiate, as soon as possible, the process for the appointment of the members of the Syndicate and the Academic Council in accordance with the provisions of this Act.

(2) Any administrative set up at NFC Institute in existence immediately before the commencement of this Act, shall continue to function and shall as far as may be, exercise the powers respectively assigned to the Vice- Chancellor and the corresponding Authorities by or under this Act, until such time as they are respectively replaced in accordance with the prevision of this Act.

(3) Notwithstanding anything contained in this Act, the first Vice-Chancellor shall be appointed by the Chancellor for a period of four years.

42. Removal of difficulties.—(1) If any question arises as to the interpretation of any of the provisions of this Act, it shall be placed before the Chancellor whose decision thereon shall be final.

(2) If any difficulty arises in giving effect to any of the provisions of this Act, the Chancellor may make such order after obtaining the views of the Senate, not inconsistent with the provisions of this Act, as may appear to him to be necessary for removing the difficulty.

(3) Where this Act makes any provision for anything to be done but no provision or no sufficient provision has been made as respects the authority by whom, or the time at which, or the manner in which, it shall be done, then it shall be done by such authority, at such time, or in such manner as the Chancellor may direct after obtaining the views of the Senate.

43. Indemnity.—No suit or legal proceedings shall lie against the Government, the Institute or any Authority, officer or employee of the Government or the Institute or any person in respect of any thing which is done in good faith under this Act.

44. Power to allow appointment of employees of the Government, other universities or educational or research institutions to the Institute.—(1) Notwithstanding anything contained in this Act the Senate may, on the advice of the Syndicate, allow any post in, the Institute to be filled by appointment, on such terms as the Senate may specify, an employee of the Government or any other university or educational or research institution.

(2) Where any appointment has been made under this section, the terms and conditions of service of the appointee shall not be less favourable than those admissible to him immediately before such appointment and he shall be entitled to all benefits of his post of service.

Passed by the National Assembly on the 8th October, 2009 and by the Majlis-e-Shoora (Parliament) in its Joint Sitting on the 5th April, 2012 in terms of clause (3) of Article 70 of the Constitution of the Islamic Republic of Pakistan.

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ACT NO. XIV OF 2012

PAKISTAN TRADE CONTROL OF WILD FAUNA AND FLORA ACT, 2012

An Act to give effect to the United Nations Convention on International Trade in Endangered Species of Wild/Fauna and Flora

[Gazette of Pakistan Extraordinary, Part-I, 8^th May, 2012]

WHEREAS, Pakistan is a party to the United Nations Convention on International Trade in Endangered Species of Wild Fauna and Flora.

AND WHEREAS, it is expedient to enable the Federal Government to give effect to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

It is hereby enacted as follows:—

1. Short title, extent and commencement.—(1) This Act may be called the Pakistan Trade Control of Wild Fauna and Flora Act, 2012.

(2) It extends to the whole of Pakistan.

(3) It shall come into force on such date as the Federal Government may by notification in the official Gazette, appoint.

2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—

(a) "Convention" means the United Nations Convention on International Trade in Endangered Species of Wild Fauna and Flora 1973 including such amendments made therein, which are accepted by Pakistan;

(b) "designated authority" means a management authority designated by the Government of a State, other than Pakistan, for the purposes of the Convention;

(d) "export" means taking out of Pakistan by land, sea or air;

(e) "indigenous" means a wild animal or plant species native to a specified area, a country or a region, but not introduced from an area of its natural Occurrence;

(f) "Management Authority" means the authority constituted under Section 15;

(g) "person" includes legal or natural person, a company, association, a body of individuals whether incorporated or not; and

(h) "Scientific Authority" means the Authority designated under Section 16.

(i) Then expressions used but not defined herein shall have the same meanings as are assigned to them in the Convention.

3. Prohibition of export, re-export and import and punishment for contravention.—(1) No person shall export or re-export out of or import into Pakistan any specimen included in any Appendix of the Convention, except as provided under Section 5, 6, 7 and 9. Such export, re-export or import shall be through a customs port of exit or entry, and subject to any other law relating to control on export, re-export and import for the time being in force.

(2) Any person who attempts or abets to do anything which is prohibited under this Act rules made hereunder shall be liable to the same punishment as that of the offence under this Act.

(3) A person who presents, possesses or uses a false license or certificate shall be guilty of the offence specified in sub-section (2) and be liable for the same punishment as provided in sub-section (5).

(4) Where an offence under this Act has been committed by a body corporate, and it is proved that such offence has been committed with the consent or connivance of or, to be attributable to any neglect on part of a director, manager, secretary or other officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(5) Any person who,—

(a) contravenes or resists or interferes with the enforcement of the provisions of this Act or any rule or order made there under; or

(b) in an application or in any proceedings under this Act furnishes or abets the furnishing of any information which he knows or has reason to believe to be false, or fraudulently conceals or misrepresents facts, or abets such concealment or misrepresentation.

Shall be punished with imprisonment for a term which shall not be less than one year or more than two years or with fine which shall not be less than 0.500 million rupees or more than 1.000 million rupees.

4. Cognizance of Offence.—No Court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by a duly authorized officer of department or an officer designated by the Federal Government.

5. Export from Pakistan.—The export from Pakistan of any specimen included in any Appendix shall require valid export permit issued by the Management Authority. An export permit shall be granted on fulfill of the following conditions namely:—

(a) the Scientific Authority has advised that such export shall not be detrimental to the survival of that species and to other species of fauna and flora;

(b) the Management Authority is satisfied that the specimen was not obtained in contravention of the laws of Pakistan for the protection of fauna and flora;

(c) the Management Authority is satisfied that any living specimen will be so prepared and shipped as to minimize the risk of injury, damage to health or cruel treatment; and

(d) the Management Authority is satisfied that an import permit or no objection certificate has been granted for the specimen by the designated authority.

6. Import into Pakistan.—(1) The import into Pakistan of any specimen included in any Appendix shall require the following, namely:—

(a) the export permit on a re-export certificate issued by a designated authority; and

(b) an import permit or no objection certificated issued by the Management Authority.

(2) An import permit shall be granted on fulfillment of the following conditions, namely:—

(a) the Scientific Authority has advised that the import shall be for purposes which are not detrimental to the survival of the species involved and to other indigenous species of fauna and flora;

(b) the Scientific Authority is satisfied that the proposed recipient of a living specimen is suitably equipped to house and care for it; and

7. Re-export from Pakistan.—The re-export from Pakistan of any specimen included in any Appendix shall require a valid re-export certificate issued by the Management Authority and a re-export certificate shall be granted on fulfillment of the following conditions, namely:—

(a) the Management Authority is satisfied that the specimen was imported in accordance with the provisions of this Act;

(b) the Management Authority is satisfied that any living specimen will be so prepared and shipped as to minimize the risk of injury, damage to health or cruel treatment;

(c) the Scientific Authority is satisfied that the proposed recipient of a living specimen is suitably equipped to house and care for it; and

(d) the Management Authority is satisfied that an import permit has been granted for such specimen by the designated authority.

8. Introduction from the sea.—The introduction from the sea of any specimen of a species included in any Appendix shall require the prior grant of a certificate by the Management Authority. A certificate shall be granted on fulfillment of the following conditions, namely:—

(a) the Scientific Authority has advised that the introduction will be for purposes which are not detrimental to the survival of the species involved and to other indigenous species of fauna and flora;

(b) the Scientific Authority is satisfied that the proposed recipient of a living specimen is suitably equipped to house and care for it;

(c) the Management Authority is satisfied that any living specimen will be so handled as to minimize the risk of injury, damage to health or cruel treatment; and

(d) the Management Authority is satisfied that the specimen is not to be used primarily for commercial purposes.

9. Export or re-export to or import from a state not a party to the convention.—Where export or re-export from Pakistan to or import into Pakistan is from a State not a Party to the Convention, comparable documentation issued by the competent authorities in that State, which substantially conforms with the requirements of the Convention for permits and certificates, may be accepted by the Management Authority in place of the required documents.

10. Transit or trans-shipment of specimens.--The provisions of Sections 3 of 9 shall not apply to the transit or trans-shipment of specimens through or in Pakistan while the specimens remain in Customs control.

11. Specimens that are personal or household effects.—The provisions of Sections 3 to 9 shall not apply to specimens that are personal or household effects but this exemption shall not apply where,—

(a) in the case of specimens included in Appendix-I, they were acquired by the owner outside Pakistan, and are being imported into Pakistan; or

(b) in the case specimens included in Appendix-II, if—

(i) they were acquired by the owner outside Pakistan and in a State where removal from the wild occurred;

(ii) they are being imported into Pakistan; and

(iii) the State where removal from the wild occurred requires the prior grant of export permits before any export of such specimens unless the Management Authority is satisfied that the specimens were acquired before the coming into force of the Convention and this Act.

12. Export and import of specimens bred in captivity or artificially propagated.—Where the Management Authority or the designated authority or competent authority is satisfied for the purposes of export from or import into Pakistan that a specimen of an animal or plant species was bred in captivity or was artificially propagated, or is a part of such an animal or plant or was derived therefrom the Management Authority shall,—

(a) issue a certificate to this effect; and

(b) accept similar certificate issued by a designated authority or a competent authority in lieu of any of the permits and certificates required under Sections 3 to 9 of this Act.

13. Non commercial loan, exchange etc.—The provisions of Sections 3 to 9 shall not apply to the non-commercial loan, donation or exchange, between scientists or scientific institutions registered by the Management Authority or a designated authority or a competent authority, of specimens which carry a label issued or approved by the Management Authority or the designated authority.

14. Waiver of requirements.—The Management Authority may waive the requirements of Sections 3 to 9 and allow the movement, subject to conditions as it may deem appropriate without permits or certificates, of such specimens which form part of a traveling zoo, circus, menagerie, plant exhibition or other traveling exhibition provided that,—

(a) the exporter or importer registers full details of such specimens with the Management Authority;

(b) the specimens are in either of the categories specified in Sections 11, 12 and 13 of this Act; and

(c) the Management Authority is satisfied that any living specimen will be so transported and cared for as to minimize the risk of injury, damage to health or cruel treatment.

15. Management Authority.—For purposes of this Act, the Federal Government shall, by notification in the official Gazette, designate one or more Management Authorities, with which at least one representative each from all the Provincial Government and Government of Gilgit Baltistan, shall be associated.

16. Scientific authorities.—The Federal Government, on the recommendation of the Management Authority, shall designate one or more scientific authorities, as deemed appropriate from time to time or on case to case basis, to render advice on plants and animals. The final decision on all matters related to the Convention shall rest with the Management Authority.

17. Entry and release of wild exotic fauna and flora,—The Federal Government may, by notification in the official Gazette, make rules to regulate entry into and release of exotic fauna and flora in Pakistan.

18. Confiscation or return of specimens unlawfully traded.—The specimens included in the Appendices traded in violation of the laws of the State of export and this Act shall be liable to confiscation by the Federal Government and thereafter, if so desired, return to the State of export.

19. Confiscation of specimens possessed unlawfully.—Any specimen included in the Appendices found in possession of a person without legal permit or certificate shall be confiscated and the person shall be punished as provided under Section 3.

20. Animals and plants etc., to be Government property.—(1) Notwithstanding anything contained in any other law for the time being in force and subject to the provisions of this Act, the specimens, the trade and possession of which has been prohibited under this Act or rules made there under shall, upon confiscation, be the property of the Federal or the Provincial Government, as the case may be.

(2) Any person who obtains, by any means, the possession of the Government property as mention in sub-section (1) shall, within forty-eight hours from obtaining such possession, handover such property to such officer as designated by the Federal Government.

(3) No person shall, without the previous permission in writing of the Management Authority or the designated department or officer,—

(a) acquire or keep in his possession, custody or control; or

(b) transfer to any person, whether by way of gift, sale or otherwise; or

21. Arrangements for feeding and safe keeping.—The Management Authority shall make suitable arrangements for feeding and safe keeping of the specimens confiscated under this Act so that the living specimens are properly cared for so as to minimize the risk of injury, damage to health or cruel treatment.

22. Maintenance of records.—The Management Authority shall maintain the following records of trade in specimens included in Appendices, namely:—

(a) the names and addresses of traders including the exporters and importers;

(b) the number and type of permits and certificates granted;

(d) the numbers or quantities and types of specimens;

(e) names of species as included in Appendices; and

(f) where applicable, the size and sex of the specimen in question.

23. Officers to be public servants.—The officers or persons authorized under any provisions of this Act to do certain thing or act in certain manner shall be deemed to be public servant within the meaning Section 21 of the Pakistan Penal Code, 1860 (Act XLV of 1860).

24. Power to delegate.—The Federal Government may by notification in the official Gazette delegate, subject to such conditions as may be specified in the notification, any of its or of a Federal agency's powers and functions under this Act and the rules made there under to any Provincial Government.

(f) "Mobile Network Operator (MNO)" means a cellular mobile service licensee of the Authority;

(g) "Regulations” means the regulations issued by the Authority from time to time;

(h) "Rules" means the rules issued by the Federal Government under Section 57 of the Act; and

(i) "SIM" means the subscriber identity module to be provided as a connection for cellular mobile services by the Licensee.

(2) The words and expressions used but not defined in these regulations shall have the same meanings as assigned to them in the Act, Rules and Regulations.

PART-II

PROCEDURE FOR APPROVAL OF COMMERCIAL AGREEMENT AND GRANT OF LICENSE

3. Procedure to be followed by Mobile Network Operator.—(1) An MNO shall submit to the Authority, a draft of the proposed Commercial Agreement between the MNO and proposed MVNO, containing inter alia, the detailed provisions regarding the following aspects:--

(a) Quality of service;

(b) Number Portability support by MVNO;

(d) Customer care arrangements;

(e) Dispute resolution mechanism; and

(f) National Security arrangements.

(2) Upon satisfactory evaluation of the Commercial Agreement, the Authority may approve the agreement which shall be intimated to the MNO.

(3) If the approval of the proposed Commercial Agreement is declined for reasons of defect, the MNO may apply afresh after removing the said deficiency.

(4) The proposed MVNO applicant may enter into commercial agreements with more than one MNO.

4. Criteria for the eligibility of applicants for a MVNO Class License.—(1) All companies registered with Securities and Exchange Commission of Pakistan (SECP), possessing approved commercial agreement by the Authority under sub-regulation (2) of Regulation 3, shall be eligible to apply for an MVNO Class License. The License application shall include documents as specified in Annex-A:

Provided that an application for a license as an MVNO operator will only be considered if submitted within thirty (30) days of the grant of approval of the proposed commercial agreement by the Authority under sub-regulation (2) of Regulation 3.

(2) The Authority shall consider the application for a License taking into account the following factors, namely:--

(a) Technical and Business Plan of the proposed MVNO;

(b) Technical competence, experience of applicant's key members of staff;

(d) Registration of the proposed MVNO with the Securities and Exchange Commission of Pakistan.

5. Fees.—(1) Initial license fee for an MVNO Class license shall be US $ 5 million:

Provided that an MVNO Licensee shall pay all regulatory fees and contributions in the same way as applicable on an MNO in accordance with the Act, Rules, Regulations and license conditions.

(2) The fee shall be paid through a demand draft or pay order issued in favor of the Authority.

6. Grant of License.—Upon satisfactory evaluation of the application by the Authority, an MVNO license shall be granted within thirty (30) working days of receiving of the application in the prescribed form complete in all respect.

7. Duration.—Subject to the Act, Rules and Regulations made there under, a License issued by the Authority shall be valid for an initial period of ten (10) years, subject to the mutual agreement between the parties:

Provided that the license term may be extended for a further period of ten (10) years by the Authority, upon expiry of each term, subject to mutual agreement between the Licensee and the MNO concerned:

Provided further that upon expiry of the mutual agreement, expiry or termination of the parent MNO(s) license, the License shall automatically stand terminated.

PART-III

MISCELLANEOUS PROVISIONS

8. General Conditions.—(1) The Licensee shall get its customer agreement form and contents of the standard contract of service document approved by the Authority prior to the commencement of its services.

(2) The Licensee shall issue SIM(s) with its own brand name.

(3) The Licensee may with approval of the Authority offer value added services independently or by bundling them with basic mobile telephony services.

(4) Quality of service shall be the responsibility of the Licensee.

(5) Licensee may enter into roaming agreements with other operators on mutually agreed terms.

(6) The number allocation procedure for the Licensee(s) shall be as prescribed in Annex-B to these Regulations.

(7) The Licensee shall establish easy to use and efficient compliant handling mechanism for effective resolution consumer complaints.

9. Commencement of Operations.—(1) The Licensee shall be obliged to commence licensed services within one year from the date of grant of License.

(2) The Licensee shall not provide any licensed services, within a period as required in sub-regulation (1) of Regulation 9, to a customer, or accept any payment from a customer in respect of the licensed services to be provided by the Licensee, unless a commencement certificate is issued by the Authority certifying that the Licensee has established the required telecom system under the provisions of the License and is able to provide licensed services.

(3) The Licensee shall give 30 days prior notice to the Authority prior to the date on which the Licensee intends to commence providing any licensed service to customers. The Licensee shall
co-operate with the Authority in scrutiny and investigation of its telecommunication system in connection with the issuance of a commencement certificate.

(6) A Licensee may apply to the Authority for extension in the required date of commencement of services, only in exceptional circumstances:

Provided that the application of the Licensee for grant of extension in the date of commencement under these Regulations may only be considered by the Authority if deemed appropriate, and the decision of the Authority shall be final and binding.

10. Rights and Obligations of MNO(s).—(1) Upon commencement of services by an MVNO as prescribed in Regulation 9, the MNO shall provide service to the MVNO(s) without any interruption.

(2) The parent MNO(s) shall not suspend or terminate services to the MVNO(s) Licensee without prior approval of the Authority.

(3) An MNO may enter into commercial agreements with more than one MVNO Licensee.

(4) The MNO(s) shall be responsible for national security.

11. Dispute Resolution.—(1) The MNO concerned and MVNO Licensee shall make all reasonable efforts to resolve their disputes in accordance with the terms and conditions of the Commercial Agreement, amicably without delay.

(2) If the MNO concerned and MVNO are unable to resolve the dispute referred to in sub-regulation (1) above, they shall refer the dispute to the Authority for resolution.

12. Inspection.—(1) The Authority may as and when required authorize an officer, to inspect the premises and records maintained by an MVNO Licensee for the purpose of these regulations.

(2) The MVNO Licensee shall ensure all practicable assistance to the officer of the Authority for an inspection at any time.

13. Provision of Information to the Authority.—The MVNO Licensee shall produce and provide any document or record to the Authority as and when required for the purpose of any inspection or investigation.

ERUM LATIF,
Deputy Director (Law & Regulations-I),

PAKISTAN TELECOMMUNICATION AUTHORITY HEADQUARTERS F-5/1, ISLAMABAD

Annex-A

PAKISTAN TELECOMMUNICATION AUTHORITY HEADQUARTERS F-5/1, ISLAMABAD
http://www.pta.gov.pk

Application No. (to be filled by PTA)

CHECK LIST FORM
(TO BE SUBMITTED WITH THE APPLICATION)

#	Items	Check (√) if attached	# of pages	For PTA use only
1.	Applicant(s) profile;
2.	Evaluation fee; Submit proof of deposit
3.	Certificate of Incorporation (including Memorandum & Article of Association and Form-29 and Form-A duly certified by SECP)
4.	a. Attested copies of Computerized National Identity Card for Pakistani National shareholder directors, b. Attested copies of Passport of foreign nationals submitted through Ministry of Foreign Affairs after security clearance.
5.	Undertaking on duly notarized stamp paper for:-- a. That the company or its Director have never been declared insolvent by any Court of law; b. That the Directors of the company have never been convicted by a Court of law for major offences or unethical/immoral turpitude (other than minor offences). c. That neither the applicant company nor its shareholder directors are defaulters) of PTA.
6.	Bio-data of key management personnel
7.	Brief Description of the Applicant's Business Plan
8.	Technical Plan
9.	Copy of proposed Service Level Agreements with the Access/Infrastructure Provider/ customers.

PAKISTAN TELECOMMUNICATION AUTHORITY
HEADQUARTERS F-5/1, ISLAMABAD

Annex-B

NUMBER ALLOCATION PROCEDURE FOR MOBILE VIRTUAL NETWORK OPERATOR (MVNO)

Background:

PTA allocates and approves mobile numbering- plan for all cellular mobile operators in light of Number Allocation & Administration Regulations 2011 (as amended time to time). This includes the issuance of Mobile Country Codes (MCC), Mobile Network Codes (MNC), National Destination Code (NBC) along with geographic numbers as per ITU-T recommendations. These numbers are issued in the following format:

IMSI (Max of 15 digits)
3 digits	2 digits	Max of 10 digits
MCC	MNC	MSIN
410	01	000 6765432

MCC : Mobile Country Code

MNC : Mobile Network Code

MSIN ; Mobile Subscriber Identification Number

IMSI : International Mobile Subscriber Identity

MCC codes are assigned for each country by the Telecommunications Standardization Bureau within

ITU-T (TSB). For Pakistan, the assigned MCC is (410). The MNC is assigned by the PTA e.g. (01) for Mobilink GSM. MSIN is assigned by the network operator.

ALLOCATION PROCEDURE FOR MVNO:

MVNOs will follow the following standard operating procedure (SOP) for the allocation of numbering resources from PTA:

FOR INTIAL APPLICATION

1. MVNO shall provide a copy of license issued by PTA.

2. MVNO shall provide a copy of agreement signed with cellular mobile operator to PTA.

GENERAL

1. Cellular Mobile Operators shah reserve pool of numbers for MVNOs and pass on this information to PTA along with fees if applicable.

2. PTA will allocate numbering block of 5000 numbers against previously allocated NDC of particular mobile operator to MVNOs against each city/district/location.

3. MVNOs shall submit numbering utilization Performa for requesting additional numbering block.

4. MVNO& will submit advance annual number charges along with application processing fee for number allocation as per ''Numbering Administration & Allocation Regulations 2011" (as amended from time to time).

5. An MVNO shall be allowed to have numbers from more than one Cellular Mobile Operator (MNO) provided all requirements are met with each additional Cellular Mobile Operator (MNO) along with any other requirement which the PTA may impose.

6. The number allocated to MVNO operators shall be allowed to be ported out to any other cellular mobile operator (MNO) within Pakistan.

7. Mobile Number Portability shall be a joint responsibility of MVNO and its parent MNO [that actually controls the network infrastructure]. In this regard, both parties shall clearly define technical arrangements and operational procedures.

-------------------------------

REGULATIONS, 2012

NATIONAL ELECTRIC POWER REGULATORY AUTHORITY SERVICE (AMENDMENT) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-I, 28^th February, 2012]

S.R.O. 203(I)/2012.—In pursuance of Section 10(1) and Section 47(2) of the Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997), the National Electric Power Regulatory Authority (NEPRA) is pleased to approve the following further amendments in the National Electric Power Regulatory Authority (NEPRA) Service Regulations 2003 (earlier notified vide S.R.O. 544(l)/2003, dated 12-06-2003), namely:--

WHEREAS it is expedient further to amend, add, insert, modify, omit and substitute some regulations in the National Electric Power Regulatory Authority Service Regulations for the purposes hereinafter appearing;

AND WHEREAS The National Electric Power Regulatory Authority intends to clarity certain regulations, specify criteria for promotion and seniority of employees;

Now THEREFORE The National Electric Power Regulatory Authority is pleased to make and notify the following regulations:—

1. Short title and commencement.—(1) These regulations may be called the National Electric Power Regulatory Authority Service (Amendment) Regulations, 2012.

(2) These regulations shall come into force at once.

2. General Amendments.—Throughout the NEPRA Service Regulations, the word "NEPRA" shall he substituted with the word "Authority" wherever applicable. Similarly, the words "regular employee, regular NEPRA employee, regular employee of NEPRA etc". shall be replaced with the word "employee".

3. Amendment of Regulation 1.—In Regulation 1, in sub-regulation (3), the following shall substitute the first two lines of the original regulation, namely:—

"These Regulations shall apply to all employees appointed, on regular basis, by the Authority except:"

4. Amendment of Regulation 2.—(1) In Regulation 2, definitions, the following shall substitute the first Paragraph, 2nd line, the sentence starting with 'subject to foregoing', namely:--

"Subject to the foregoing, all words used but not defined in these regulations, shall have the meanings assigned to them in NEPRA Act."

(2) In Regulation 2, in sub-regulation (16), the word, "Federal" shall be inserted after the word, "the" and before the word, "Government".

(3) In Regulation 2, in sub-regulation (18), in clause (a), the words, "in writing" shall be added after the word, "instructions" and before the word, "issued".

In Regulation 2, in sub-regulation (18), in clause (g) the last word after semicolon "and" shall be omitted and after clause (h), the following new clauses shall be inserted, namely:--

"i. unauthorized communication of any official document or information to a person or organization not entitled to receive that;

j. taking part in politics & elections;

k. use of political or other influence by the employee in support of any claim arising in connection with his/her employment as such; and

l. unauthorized communication with foreign missions and aid-giving agencies."

(5) Insertion of new sub-Regulation 18 A.—In Regulation 2, after sub-regulation (18) and before sub-regulation (19), the following new sub-regulation shall be inserted, namely:—

"18-A. "NEPRA Act" means Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997) and subsequent Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act, 2011 (XVIII of 2011)."

5. Amendment of Regulation 3.—(1) In Regulation 3, in the beginning, for the words "There shall be two cadres of service as follows:", the following shall be substituted, namely:--

"(1) There shall be two cadres of service. Within each cadre, there shall be designation-wise sub-cadres, for which separate seniority lists shall be maintained:"

(2) In clause (a) of Regulations 3, in the sixth line, after the word "economics" and before the words "or", the words "management, IT" shall be inserted.

(3) In Regulations 3, clause (b) shall be substituted with the following:

"This cadre will comprise of employees who are employed for provision of services to the staff, professionals and Members of the Authority. The details of designations which fall in this group are provided in Appendix-2."

(4) In Regulations 3, clause (c) shall be omitted.

6. Amendment of Regulation 7.—The following new sub-regulations shall be inserted after sub-regulation (3), namely,—

(4) SEEKING EMPLOYMENT OUTSIDE THE AUTHORITY

i. The employees will be required to seek a 'No Objection Certificate' from the Chairman / Authority before applying for any post outside the NEPRA.

ii. During the probation period, it will not be permissible for the employees to apply for jobs outside the NEPRA in any case and no NOC will be granted to this effect.

iii. NOC may be granted to the employees to apply for a job outside the NEPRA not more than 'once' in a calendar year.

iv. Applying for jobs outside the NEPRA without prior permission of the competent authority shall be treated as 'misconduct' and disciplinary action will be initiated against such employees.

7. Amendment of Regulation 10.—In Regulation 10, the second sentence starting from "However an employee" and ending at "in lieu thereof shall be substituted with the following:

"In case an employee wishes to leave service before the age of superannuation, he/she may leave service upon tendering, his/her resignation to the Authority by giving one (01) month's notice or one (01) month's salary in lieu thereof, subject to approval by the Authority."

8. Amendment of Regulation 13.—In sub-regulation (2) of Regulation 13, the words "comprising of V.C., one Member and D.G. of the concerned section" shall be omitted.

9. Amendment of Regulation 14.—In Regulation 14, in sub-regulation (1) the semi colon appearing after the words "contingency basis" shall be substituted with full stop and thereafter the proviso shall be omitted and the following shall be inserted:

"However, employment on contingency basis shall be restricted to NSG 1 to NSG 4."

10. Amendment of Regulation 17.—In sub-regulation (2) of Regulation 17, the full stop at the end of the sub-regulation shall be substituted with comma and thereafter words "which will not exceed 3 months in a calendar year." shall be inserted.

11. Amendment of Regulation 19.—(1) In Regulation 19, sub-regulation (2) shall be omitted.

(2) In sub-regulation (3), the words, brackets and figures appearing in the fourth line "sub-rule (1) and (2)" shall be substituted with the words, brackets and figure "sub-regulation (1)".

(3) The sub-regulation (3) amended as aforesaid, shall be renumbered as (2), and sub-regulation (4) as (3).

12. Amendment of Regulation 26.—(1) In Regulation 26, the word "REGULATORY" appearing in the marginal notes, shall be substituted with the word "GOVERNMENT".

(2) In sub-regulation (1), the words "regulatory organization or an associated agency" shall be substituted with the words "Government Organization".

(3) In sub-regulation (9), after the word "NEPRA" and before the full stop the words "and earns one assessment report" shall be inserted.

13. Amendment of Regulation 27.—In Regulation 27, in the second line, after the words "for any duration" a full stop shall be inserted and the rest of the regulation shall be omitted. Thereafter, in the regulation, amended as aforesaid, the following shall be inserted, namely:—

"The trainee shall execute such documents as prescribed in Appendix-6 to these regulations. The trainee shall serve in NEPRA for a period of 2 years after completion of a course / training with a duration of more than six months. If the trainee leaves NEPRA before the completion of the requisite post-training service, he/she shall pay such amount out of the total training expenditure which shall be calculated on pro-rata basis (proportionate to his/her post-training service at NEPRA)."

14. Insertion of new Regulation 27-A.—After Regulation 27 and before Regulation 28 the following new regulation shall be inserted, namely:—

"27-A. SENIORITY.—The Authority shall cause a seniority list of all the regular employees to be prepared and circulated every year based on principles given below:--

(1) If two or more persons are appointed through the same open advertisement or, if the post was not advertised, through the same selection procedure, their inter se seniority shall be determined in the order of merit assigned to them by the authorities competent to make selection and promotion and if no such order was assigned, the older in age shall be senior.

(2) The employees who are selected for promotion to a higher post in one batch shall, on their promotion to the higher post, retain their inter se seniority as in the lower post.

(3) Employees appointed through initial recruitment in a batch will be assigned seniority as per merit assigned by the authorities competent to make selection irrespective of earlier date of joining of any employee of that batch.

(4) Employees eligible for promotion who could not be considered for promotion in the original reference in circumstances beyond their control or whose case was deferred while their juniors were promoted to the higher post, shall, on promotion, without supersession, take their seniority with the original batch.

(5) The decision of Authority regarding seniority of employees, determined in the light of above criteria, shall be final."

15. Amendment of Regulation 29.—(1) In sub-regulation (3) of Regulation 29, the words and earns an AAR for one full year' shall be inserted at the end of paragraph."

(2) In sub-regulation (4), the words "to a post" shall be substituted with the words "against a clear vacant post".

(3) Sub-regulation (6) shall be omitted.

(4) The sub-regulations (3), (4) amended as aforesaid, (1), (2) and (5), shall be renumbered as (4), (5), (6), (1) and (7), respectively.

(5) After amending the Regulation 29 as aforesaid, the following new sub-regulations shall be inserted,—

"(2) Promotion cases of employees in NSG-2 to 6 and NPG-1 and above shall be processed on the basis of Seniority- cum - fitness. Fitness shall be assessed primarily on the employee’s work in the lower post (s) as reflected in his/her Annual Assessment Reports (AARs). Employees in NSG-1 shall be promoted on the basis of seniority only. AARs shall be quantified as per following details. Overall eligibility threshold to qualify for consideration for promotion shall be 75%.

Overall Grading of AAR	Points/ Weightage
Outstanding	10
Very Good	8
Good	7
Average	5
Below Average	1
Poor	0

(3) The Authority shall meet to decide promotion cases of employees only once in each calendar year subject to availability of vacancies.

(8) An employee who is on deputation to some other organization shall be eligible for consideration for promotion on his/her return from deputation and upon earning one assessment report in NEPRA. The term of deputation period shall be considered as service for promotion and assessment reports earned during that term shall be quantified/graded according to NSR."

16. Amendment of Regulation 30.—(1) In Regulation 30, after the words "post or scale" the words "as a matter of right or” shall be inserted.

17. Amendment of Regulation 31.—(1) In sub-regulation (1) of Regulation 31, the words "more than six months" shall be substituted with the words "three months or more”.

(2) The sub-regulations (2), (3) & (4) shall be substituted with the following:

“(2) Employee who has served under various reporting officers in different spells of time in a calendar year, his/her Annual Assessment Reports should be prepared by all Reporting Officers under whom he/she has worked for at least 3 months during that year.

(3) The Annual Assessment Report shall be written by the immediate senior officer (i.e. Reporting Officer-RO), countersigned by the officer senior in rank to RO (i.e. Senior Reporting Officer-SRO) and endorsed by the officer senior in rank to SRO (i.e. Next Senior Reporting Officer-NSRO) in the chain of hierarchy, where applicable.

(4) Performance evaluation of an employee shall not be made for the period during which she/he remains under suspension, on forced leave or absent from duty."

(3) The following new sub-regulations shall be inserted after sub-regulation (4), namely,—

"(5) The calendar year based performance procedure should be initiated in December of the relevant year and completed and countersigned by January of the next year. Any special assessment should be initiated immediately after the event necessitating such reporting and completed and countersigned within one month.

(6) Only the evaluation reports with adverse opinion shall be communicated to concerned employee.

(7) The comments of RO, SRO, NSRO in the AAR are mandatory where applicable. Administration will ensure that AAR is duly completed in this respect besides keeping all AARs secure and ensuring their confidentiality."

18. Amendment of Regulation 55.—In Regulation 55, the words "one and a half times the basic pay last drawn" shall be substituted with the words "one gross salary (last drawn)".

19. Amendment of Regulation 73.—(1) In Regulation 73, sub-regulation (1), after the words "salaries of the employee" the words "or equivalent to the balance of contributory fund and gratuity available with the Authority in the employee's account whichever is less" shall be inserted.

(2) The sub-regulation (2) of Regulation 73, shall be omitted.

(3) The sub-regulation (3)(i) shall be substituted with the following :

"A vehicle advance agreement, on the Authority approved proforma, is to be executed between the employee and the Authority.

(4) In sub-regulation (3)(ii) of Regulation 73, the following sentence shall be inserted at the end:

"The employee shall also indemnify that the balance of contributory fund and the amount of gratuity available in his account with NEPRA shall serve as the collateral for the loan."

(5) In Regulation 73, after sub-regulation (5), the following new sub-regulations shall be inserted, namely,—

(5) Employees must have a minimum of three years of regular service at NEPRA to qualify for the advance.

(6) Employees in grades NPG-1 and above shall be eligible for motor car advance and if the advance sanctioned to them exceeds Rs. 500,000/-, it would be mandatory for them to purchase a new car. Employees in NSG-1 to 6 shall be allowed to apply advance only for the purchase of a new motor cycle with the maximum limit of
Rs. 100,000/-. Employees availing such advance shall submit the proof of the booking of vehicle within one month after issuance of loan by the Authority failing which the advance may be called back.

(7) Employees shall be eligible to avail Motor Car/Motor Cycle advance only once during entire service at the Authority.

(8) Employees having less than two years of service at their credit before retirement shall not qualify to apply for motor car / motor cycle advance.

(6) The sub-regulations (1), (2), (3) amended as aforesaid, (4) and (5), shall be renumbered as (1), (2), (3) and (4), respectively.

20. Amendment of Regulation 78.—(1) In Regulation 78, in sub-regulation (1), the rupee rates of daily allowances for officers & staff shall be substituted with the following:--

Rupees
(Indexed upto lst July-2011)

(a) NEG 1 & 2 2,380/-

(b) NPG1 – NPG 4 1,904/-

(d) NSG1 - NSG4 476/-

(2) In Regulation 78, in sub-regulation (2), the words "or as approved by NEPRA from time to time" appearing after the words "Federal Government" shall be deleted.

21. Substitution of Regulation 79.--The Regulation 79 shall be substituted with the following:

"The employees while on tour may stay in a hotel of their choice or in rest house (list of hotels as Appendix-7) while on official duty other than the station of their posting and claim reimbursement of the room rent as per actual. In case of self arranged accommodation for which no receipt is produced, the rates for each night stay will be allowed as equal to 1.5 times of the daily allowance."

22. Substitution of Regulation 94(1).—The sub-regulation (1) of Regulation 94 shall be substituted with the following:

"Outdoor Treatment For Minor Ailments--This will cover ailments of minor nature when the patient does not require stay in hospital and requires only consultation with a physician/general practitioner to obtain prescription and purchase of related medicines at facilities or hospitals designated by the Authority or from the open market. In case of treatment from NEPRA panel hospitals, 80% payment for such treatment shall be paid by NEPRA and 20% shall be charged to the employee.

If the treatment is availed from open market (other than the hospital on NEPRA panel), payment shall be reimbursed @ 80% of the actual cost or 80% of the cost of the same treatment (consultation and medical tests) at panel hospitals designated for the purpose, by the Authority, from time to time whichever is less.

This facility shall be available to all the employees and their families."

(2) In sub-regulation (2) of Regulation 94,—

(a) In clause (a), in the second line, after the word "declares" and before the word "that", the words and commas ", in writing," shall be inserted. In the same clause, in the same line, the word "as" shall be substituted with the words "would be".

(b) In clause (c), in the fourth line, after the words "allowed for officers" a comma is inserted and the subsequent words & parenthesis "(presently Shifa International Hospital Islamabad)" shall be omitted.

(c) In clause (d), in the fourth line, after the words "allowed for staff a comma is inserted and the subsequent words & parenthesis "(presently Ali Medical Center Islamabad)" shall be omitted.

23. Substitution of Regulation 97(4).—The sub-regulation (4) of Regulation 97 shall be substituted with the following:--

"During hospitalization, the employees or their family members will be entitled to the following types of accommodation:

NSG-1 to 6: Upto a maximum of approved rate for General Ward of the designated panel hospital for staff.

NPG-1 to 4: Upto a maximum of approved rate of Semi Private Room of the designated panel hospital for Officers.

NEG-1 to 2: Upto a maximum of approved rate of Private Room of the designated panel hospital for Officers."

24. Amendment of Regulation 105.—(1) In sub-regulation (1) of Regulation 105,—

(a) clause (b) shall be omitted.

(2) In sub-regulation (2) of Regulation 105,—

(a) clauses (b) & (d) shall be omitted.

(b) the clauses (b) & (d) omitted as aforesaid, clause (c) shall be renumbered as (b).

“(c) Dismissal from service."

25. Substitution of Regulation 115.—The Regulation 115 shall be substituted with the following:

The Authority may allow an advance by way of loan to a deserving employee in NSG-1 to NSG-6 for following purposes at terms determined by the Authority subject to a maximum of six (6) months' gross salary availed by the employee at the time of approval of advance, provided that the employee has completed at least six (6) years of continuous regular service with NEPRA.

(a) Marriage of the employee and/or his/her children;

(b) Medical treatment abroad of the employee and/or his/her children, parents;

(d) Repair/Maintenance/Construction of employee-owned house;

(e) Pursuing higher qualification by the employee.

26. Substitution of Appendix-1.—The Appendix-1 shall be substituted with the following Appendix-1:

The Appendixs & Forms see Gazette of Pakistan at pages 548 to 565.

------------------------

ACT NO. XV OF 2012

STOCK EXCHANGES (CORPORATISATION, DEMUTUALIZATION AND INTEGRATION)
ACT, 2012

An Act to provide for the corporatisation, demutualization and integration of stock exchanges in Pakistan

[Gazette of Pakistan, Extraordinary, Part-I, 9^th May, 2012]

No. F. 22 (23)/2008-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 7th May, 2012 and is hereby published for general information:—

WHEREAS, it is expedient, for the development of the capital markets of the country, to provide for the corporatisation and demutualization of the stock exchanges in Pakistan and to facilitate the integration of these stock exchanges and formatters ancillary thereto;

It is hereby enacted as follows:

CHAPTER-I

PRELIMINARY

1. Short title, extent and commencement.—(1) This Act may be called the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions.—(1) In this Act, unless there is anything repugnant in the context or subject,—

(i) "assets" means all immovable and movable properties (whether actual or contingent, tangible or intangible) and include all land, building, machinery and equipment, shares, securities, deposits, cash, bank balances, profits, dividends, fees, commissions, receivables, claims, contracts, licenses, privileges, reserve funds, investments and all other rights and interests in and arising out of such property in the ownership, possession, power or control of a stock exchange at any given time;

(ii) "blocked account" means a CDC account established by a stock exchange in accordance with clause (c) of sub-section (1) of Section 5;

(iii) "CDC" means the Central Depository Company established in pursuance of the Central Depository Companies (Establishment and Regulation) Rules, 1996;

(iv) "Commission" means the Securities and Exchange Commission of Pakistan established under the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997);

(v) "Committee" means the demutualization committee of members of the stock exchange ratified under Section 3 by the members of the stock exchange;

(vi) "Companies Ordinance" means the Companies Ordinance. 1984 (XLVII of 1984);

(vii) "Connected Person" means in relation to a natural person, a spouse, real, step or half sibling, lineal ascendant or descendant of such person, a partner, promoter or substantial shareholder of an undertaking, company or body corporate of which such person is also a partner, promoter or substantial shareholder or an undertaking, company or body corporate in which such person is a partner, promoter, substantial shareholder or director; in relation to a legal person a Connected person means an undertaking, company or body corporate which is a holding, subsidiary or associated company of such legal person;

(viii) "corporatisation" means the conversion of a stock exchange from a company limited by guarantee to a public company limited by shares;

(ix) "date of corporatisation" means the date on which the Registrar issues a certificate of re-registration to the stock exchange as evidence of its change in status from a company limited by guarantee to a public company limited by shares;

(x) "date of demutualization" means the date on which the Registrar issues a certificate of re-registration to the stock exchange in accordance with the provisions of Section 6;

(xi) "demutualization" means the segregation of the majority ownership of a stock exchange from the right to trade on such stock exchange;

(xii) "financial institution" includes foreign or local commercial banks development financial institutions, non-banking finance companies, insurance companies, stock exchanges, commodity exchanges, derivative exchanges or any such other entity which has been notified by the Commission as a financial institution for the purposes of this Act;

(xiii) "first directors" mean directors of the stock exchange nominated by a stock exchange or the Commission as the case may be and who take the office of director on the date of corporatisation and hold such office until elections of the directors are held in accordance with this Act;

(xiv) "initial shareholders" means the legal owners of the shares of a stock exchange on the date of corporatisation;

(xv) "integration" means the merger of two or more stock exchanges;

(xvi) "liabilities" means all borrowings, financial obligations, debts, claims, or potential losses of every description (whether actual or contingent) of a stock exchange at any given date;

(xvii) "member" means a member of a stock exchange prior to its corporatisation under this Act;

(xviii) "prescribe or prescribed" means prescribed by the regulations made by the Commission;

(xix) "scheme of integration" means a scheme of arrangement for the integration of two or more stock exchanges;

(xx) "Securities Ordinance" means the Securities and Exchange Ordinance, 1969 (XVII of 1969);

(xxi) "security" means a security as defined in clause (1) of sub-section (1) of Section 2 of the Securities Ordinance;

(xxii) "shareholders" means the legal owners of the shares of a stock exchange at any given time and include the initial shareholders;

(xxiii) "stakeholders" means the employees of the stock exchange, the TRE certificate holders, the issuers of securities listed on a stock exchange, creditors, if any, of such stock exchange and the Government of Pakistan;

(xxiv) "stock exchange" means a stock exchange registered under Section 5 of the Securities Ordinance at the time of commencement of this Act and includes a stock exchange after corporatisation, demutualization or integration as the case may be;

(xxv) "strategic investor" means a stock exchange, depository company, a derivative exchange or a clearing house which has been approved by the Commission in accordance with the prescribed criteria, for the purposes of acquiring shares of a stock exchange in pursuance of Section 12;

(xxvi) "substantial shareholder" means a person who directly or indirectly controls, beneficially owns or holds not less than twenty per cent of the voting rights of an undertaking, company or body corporate;

(xxvii) "trading right entitlement certificate or TRE certificate" means a certificate issued by a stock exchange evidencing right of the TRE certificate holder to apply for registration as a broker in accordance with the Broker and Agent Registration Rules, 2001 as amended from time to time;

(xxviii) "trading right entitlement certificate holder or TRE certificate holder" means a person who is issued a TRE certificate under Section 5, or purchases or acquires such TRE certificate under Section 16 or is issued afresh TRE certificate in accordance with the provisions of this Act; and

(xxix) "undertaking" means any trade or business of a stock exchange.

(2) The words and expressions used, but not defined in this Act, but which are defined in the Companies Ordinance or the Securities Ordinance shall have the same meaning as are assigned to them in these Ordinances.

CHAPTER-II

CORPORATISATION

3. Demutualization Committee.—(1) The members of a stock exchange shall not later than thirty clays from the commencement of this Act, in a meeting of the stock exchange, ratify the creation and constitution of the demutualization committee existing at such commencement.

(2) The committee shall be fully authorized to—

(a) approve the valuation of the stock exchange to be undertaken by the investment bank pursuant to clause (a), sub-section (I) of Section 4;

(b) enter into negotiations and finalize the sale of not more than forty per cent of the total issued share capital out of the shares lying in the blocked account with anyone or more strategic investors or financial institutions;

(3) The committee shall be fully empowered and bound to accept any price offered for the sale of shares by the strategic investor that is equal to or greater than the valuation carried out under Section 4, and finalize and enter into an agreement for the sale of such shares to the strategic investor, and the members, the shareholders including the initial shareholders and the stock exchange shall be bound by such agreement:

Provided that the decision whether to accept or reject an offer from a strategic investor, if the price offered is less than the approved valuation, shall be made in a meeting of the initial shareholders of the stock exchange through a majority vote, unless the members while constituting the committee, gave such authority to the committee.

4. Submission of information by the stock exchange.—(1) Within forty-five days of the commencement of this Act, each stock exchange shall, submit to the Commission the following, namely:—

(a) a valuation of the stock exchange approved by the committee as at any date that may be specified by the Commission, based on the discounted cash flow or net asset value of the stock exchange, or any other internationally accepted method of valuation undertaken by a renowned international investment bank approved by the Commission:

Provided that the Commission may, on a reasoned request made by the stock exchange, extend the time for the submission of the valuation of the stock exchange till 120 days from the commencement of this Act;

(b) a re-valuation of the assets and liabilities of the stock exchange as at 30th June, 2008, or as at any other date as may be specified by the Commission, undertaken by a firm of Chartered Accountants approved by the Commission in accordance with the prescribed criteria based on which valuation, the number of shares of ten rupees par value proposed to be issued will be determined;

(d) the names of members of the stock exchange proposed to be the initial shareholders of the stock exchange and the number and value of shares to be allotted to each such member:

Provided that the shares allotted in pursuance of this sub-section shall be allotted for consideration other than cash.

(e) the names of members of the stock exchange, nominated to act as the first directors of the stock exchange until such time as elections are held in accordance with this Act:

Provided that the stock exchange shall nominate only four members to act as the first directors;

(f) the proposed plan for the segregation of the commercial and regulatory functions of the stock exchange;

(g) the draft memorandum and articles of association of the stock exchange;

(h) a detailed five year development plan for the stock exchange together with the capital expenditure estimate and the sources of finance:

Provided that the items listed at clauses (b) to (h) of sub-section (1) shall be submitted to the Commission after being duly approved by the Board of Directors of the stock exchange.

(2) Within thirty days of receipt of the information submitted by a stock exchange under sub-section (1), the Commission shall, subject to the provisions of sub-section (4), approve and communicate to the stock exchange the following namely:—

(a) the revaluation of the assets and liabilities of the stock exchange;

(b) the authorized and the paid up capital of the stock exchange;

(d) the number of shares that may be allotted to each member of the stock exchange for consideration other than cash;

(e) the names of members nominated to act as first directors of the stock exchange;

(f) the plan for the segregation of the commercial and regulatory functions of the stock exchange;

(g) the memorandum and articles of association of the stock exchange; and

(h) the approved development plan.

(3) At the time of communicating the items listed in sub-section (2), the Commission shall also communicate to the stock exchange the names of six persons to be nominated by the Commission to act as the first directors of the stock exchange with a direction to elect one of these persons as the Chairman of the Board of Directors of the stock exchange.

(4) The Commission may, if it deems necessary in the interest of the capital markets, make appropriate amendments in any of the matters mentioned in sub-section (2), other than the re-valuation carried out by the firm of Chartered Accountants, before granting its approval:

Provided that before making any substantive amendments, the Commission shall inform the stock exchange of such amendments, and if so required by the stock exchange in writing, provide an opportunity of hearing to the stock exchange:

Provided further that any decision of the Commission under this sub-section (4) shall be final and binding.

(5) The valuation of the stock exchange as mentioned in clause (a) of sub-section (1), shall be provided to the Commission in a sealed envelop and the Commission shall keep the envelop sealed till the sale of shares to a strategic investor, in which case it shall return the sealed envelop to the stock exchange. In case there is no sale of shares to a strategic investor in the manner provided in this Act, the Commission shall open the envelop in accordance with provisions of Section 12.

(6) If a stock exchange fails to comply with any or all of the requirements of sub-section (1) within the stipulated time or any extension thereof, the Commission shall undertake or decide as the case may be, the matters listed in sub-section (1) and communicate the same to the stock exchange for further compliance. Any action taken by the Commission in pursuance of this sub-section shall be final and binding on the stock exchange and its members:

Provided that it the Commission engages a renowned international investment bank for the purposes of clause (a) of sub-section (1) or a firm of Chartered Accountants for the purposes of clause (b) of sub-section (1), the cost of such valuation, including all ancillary costs, shall be borne by the stock exchange being valued.

5. Procedure upon receiving approval or determination.—(1) Within thirty days of being granted approval under sub-section (2) of Section 4 or a determination under sub-section (6) of Section 4, the stock exchange shall—

(a) adopt in a meeting of its members by a special resolution the approved memorandum and articles of association;

(b) allot shares to the members approved to be the initial shareholders in the approved numbers:

Provided that all shares will be allotted in a dematerialized format and shall not, at any time or for any reason, be convertible into physical format;

(c) deposit in a blocked account sixty per cent of shares allotted to each initial shareholder and hold these in the blocked account until such time as these shares are disposed of in accordance with Section 12;

(d) issue a certificate to each initial shareholder certifying the number of his shares held in the blocked account; and

(e) issue a TRE certificate to each initial shareholder.

(2) Willful failure of a stock exchange to comply with any of the requirements of this section shall be an offence under this Act.

(3) Within seven days of the adoption of the memorandum and articles of association as aforesaid, the stock exchange shall deliver to the Registrar.—

(a) a certified copy of the special resolution by which the memorandum and articles of association have been adopted;

(b) a certificate from the auditors of the stock exchange certifying that all shares have been allotted to the initial shareholders in a dematerialized format; and

(c) a certificate from CDC that sixty per cent of the shares allotted to each initial shareholder have been deposited in a blocked account in accordance with clause (c) of sub-section (1) of Section 5.

6. Procedure upon receiving memorandum of the stock exchange.—(1) Within seven days of receipt of the information mentioned in sub-section (3) of Section 5 and after confirmation from the Commission, the Registrar shall issue a certificate of re-registration to the stock exchange as evidence of its change in status from a company limited by guarantee to a public company limited by shares.

(2) The directors of the stock exchange holding office on the date of corporatisation shall automatically cease to hold such office on receipt of the certificate of re-registration by the stock exchange, and shall stand replaced by the first directors.

7. Effect of Corporatisation.—(1) All assets and liabilities of the stock exchange as at the date of corporatisation shall remain the assets and liabilities of the stock exchange.

(2) The corporatisation of the stock exchange shall not—

(a) create a new legal entity or prejudice or affect its identity or continuity;

(b) adversely affect the registration of the stock exchange under Section 5 of the Securities Ordinance;

(d) render defective or affect any legal, disciplinary or other proceedings brought by or against it prior to the date of corporatisation;

(e) affect the validity of any regulation made by the stock exchange or the Commission in pursuance of Section 34 of the Securities Ordinance;

(f) affect any instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision or other document howsoever called, made, given or done by the stock exchange or the Commission in accordance with or in pursuance of the Companies Ordinance or the Securities Ordinance or any other law or rules and regulations made under such law in force at the date of corporatisation, and such instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision or other document shall remain valid, binding and have effect in relation to the persons to whom such instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision is applied until it is amended, repealed or otherwise expires;

(g) affect any right, privilege, obligation or liability acquired by or accrued to the stock exchange under the provisions of the Companies Ordinance or the Securities Ordinance or any other law or rules and regulations made under any such law in force at the date of corporatisation and shall not affect any legal, disciplinary or other proceedings, remedy, inspection, investigation or inquiry in relation to such right, privilege, obligation or liability and any such legal, disciplinary or other proceedings, remedy, inspection, investigation or inquiry may be instituted, continued or enforced after the date of corporatisation; and

(h) affect any action that has been taken by the stock exchange for any breach of its regulations.

(3) Upon the conversion of the stock exchange from a company limited by guarantee to a company limited by shares, the liability of each member of the stock exchange as guarantor shall be deemed to be extinguished immediately.

CHAPTER-III

DEMUTUALIZATION

8. Demutualization.—A stock exchange shall stand demutualised when the Registrar has issued a certificate of re-registration to the stock exchange in accordance with Section 6.

9. Rights attached to shares in the blocked account.—(1) All rights in respect of the sixty per cent shares of each initial shareholder deposited in the blocked account shall vest and be exercised in the following manner, namely:--

(a) the right to receive dividends, bonus shares, rights shares and the proceeds of sale of these shares shall vest in the initial shareholders:

Provided that the bonus shares and right shares if any, shall be added to the blocked shares of the initial shareholder and shall be disposed of along with those blocked shares in the manner provided in this Act;

(b) the right to sell these shares shall vest in the stock exchange to be exercised in the manner provided in Section 12; and

(c) the right to exercise the voting power attached to these shares shall remain suspended till the time of sale of these shares in accordance with Section 12.

(2) The blocked account shall be operated by the board of directors in the manner prescribed by the Commission.

10. Board of a stock exchange after demutualization and the election of directors.—(1) At any time after the date of demutualization. TRE certificate holders or connected persons of TRE certificate holders shall not hold the majority on the board of directors of any stock exchange, or hold more than forty per cent of the total paid up capital of the stock exchange.

(2) Within thirty days of the date of demutualization, the stock exchange shall hold an election of directors:

Provided that the elections shall only be in respect of the seats held by the first directors nominated by the stock exchange. The nominees of the Commission shall continue to hold office until such time as they stand replaced on a directive of the Commission to allow co-option of nominees of the strategic investor, or in subsequent elections by shareholder interest of the strategic investor and financial institutions or representatives of the general public as the case may be.

(3) After the date of demutualization, the chairman of the Board of any stock exchange shall always be from amongst those directors who do not represent the TRE certificate holders or their connected persons.

11. Effect of demutualization.—(1) From the date of demutualization, notwithstanding anything to the contrary contained in any other law for the time being in force or any agreement, award, judgment, decree or other instrument for the time being in force, the demutualization of the stock exchange shall become binding on all persons and authorities having any contractual or statutory, right, power, obligation or liability in connection with the stock exchange.

(2) The demutualization shall not adversely affect the registration of the stock exchange under Section 5 of the Securities Ordinance.

(3) A shareholder may or may not be a TRE certificate holder of the stock exchange after demutualization.

(4) A TRE certificate holder may or may not be a shareholder of the stock exchange after demutualization.

12. Divestment and issue of further shares.—(1) The Commission may at any time not later than two years from the date of demutualization direct the stock exchange and its shareholders to do one or more of the following, namely:--

(a) to enter into an agreement with a strategic investor, within one year of such direction, for the sale of not more than forty percent of its total issued share capital out of the shares lying in the blocked account;

(b) to sell to the general public through an offer for sale, not less than twenty percent of its total issued share capital out of the shares lying in the blocked account within one hundred and eighty days of the direction in accordance with applicable laws;

(c) to enter into agreements with and to sell to local financial institutions any shares remaining in the blocked account after sale of shares to the strategic investor and the general public, within one year of the direction:

Provided that the Commission may extend the period for compliance upon an application by the stock exchange setting out the reasons for not being able to comply with the said order within the specified time.

(2) A stock exchange may, by special resolution issue further shares carrying extra voting rights to a strategic investor with the prior written approval of the Commission.

(3) In case if no agreement for the sale of shares of the stock exchange is reached with any strategic investor within one year of the direction given by the Commission or within such time as may be extended by the Commission, the Commission may open the sealed envelop containing the valuation of the shares.

(4) Upon opening the sealed envelop, the Commission may take such steps or give such directions as may be necessary for achieving the sale of shares, including but not limited to—

(a) ordering the sale of shares to a strategic investor who had earlier made an offer to purchase the shares, if the price offered by such strategic investor was equal to or more than the valuation of the shares contained in the sealed envelop; or

(b) ordering a fresh auction of the shares and selling to the highest bidding strategic investor or financial institutions such number of shares and in such manner as the Commission may specify; or

(c) ordering a revaluation of the stock exchange at the cost of the stock exchange and in such manner as the Commission may specify.

(5) Notwithstanding anything contained in sub-Sections (1) to (4), if a stock exchange fails to comply with any or all of the directions given to the stock exchange under sub-section (1), the Commission may determine and conclude the matters listed in sub-section (1) in such manner as may be prescribed and any such determination by the Commission shall be final and binding on the stock exchange, its shareholders including the initial shareholders and the CDC.

(6) Refusal by any initial shareholder to accept an agreement duly entered in accordance with the provisions of this Section 12, or failure by any person to comply with any directions given by the Commission, or the willful failure of the committee to sell the shares if the offer price received for such shares is equal to or more than the approved valuation, shall be an offence.

13. Sale and purchase of shares by a strategic investor and a financial institution.—(1) A strategic investor or a financial institution who acquires shares under Section 12 may sell its shareholding in a stock exchange only to another strategic investor or a financial institution as the case may be, with the prior written approval of the Commission.

(2) A strategic investor may acquire such further shares of a stock exchange in which it is a strategic investor to enable it to increase its shareholding up to fifty one percent of the total paid up capital, subject to the following conditions, namely:—

(a) the prior approval of the Commission is obtained for such further acquisition of shares;

(b) the further acquisition is made not less than three years after it acquires shares under Section 12; and

(3) No financial institution who has acquired shares under Section 12 may acquire any further shares from the general public:

Provided that a financial institution may acquire shares from another financial institution with prior approval of the Commission.

(4) The Commission may, by order in writing and reasons to be recorded, relax any one or all of the restrictions provided in sub-Sections (1) to (3) after four years of date of demutualization.

(5) The provisions of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance, 2002 (CIII of 2002) shall not apply to any acquisition of voting shares of a stock exchange by a strategic investor.

14. Powers of the Commission to require divestment.—(1) If an initial shareholder, a member of the general public (including a company) or a TRE certificate holder directly or indirectly acquires more than one percent of the shares of a stock exchange, the Commission may direct such person to divest these shares in a manner as may be specified by the Commission from time to time or on a case to case basis.

Explanation.—For the purposes of this sub-section a person shall be deemed to have acquired shares indirectly if these shares have been acquired by a connected person of such person.

(2) If a financial institution other than a financial institution who acquire shares under Section 12, directly or indirectly acquires more than five percent of the shares of a stock exchange, the Commission may direct such financial institution to divest these shares in a manner as may be specified by the Commission from time to time or on a case to case basis.

Explanation.—For the purposes of sub-section (2) a financial institution would be deemed to have acquired shares indirectly if these shares have been acquired by a connected person of such financial institution.

(3) The limits on the holding of shares by persons mentioned in sub-Sections (1) and (2) may be amended by the Commission from time to time if deemed necessary.

(4) Willful failure to comply with any provisions of this section or any directions issued by the Commission hereunder shall be, an offence under this Act.

15. Listing of shares.—(1) The shares of a stock exchange shall be listed, on any such stock exchange and within any such time as the Commission may prescribe in consultation with the board of directors of the stock exchange which is to be listed.

(2) Where the shares of a stock exchange are listed on itself, the Commission shall act as the front line regulator of such stock exchange for such listing, and notwithstanding anything contained in any other law, shall have the necessary powers and authority to regulate and administer all the laws, rules and regulations prescribed for such matter.

(3) The self-listing of the stock exchanges under this section shall be administered and managed by the Commission in such manner as may be prescribed.

(4) A stock exchange shall make an application for the listing of its shares on itself in the manner and form, and subject to such conditions, as the Commission may prescribe.

(5) Upon receipt of an application under sub-section (4), the Commission may if it is satisfied, after making such inquiry and receiving such further information as it may consider necessary, that the application fulfils the prescribed conditions for listing, order the, listing of the shares.

(6) Willful failure of a stock exchange to comply with any prescribed condition or direction of the Commission shall be an offence under this Act.

16. Trading rights.—(1) An initial shareholder who is issued a TRE certificate under Section 5 shall, if not already registered as a broker with the Commission, be entitled to be so registered not later than two years from the date of demutualization provided that he meets the fit and proper criteria:

Provided that such TRE certificate holder shall commence business not, later than six months from the date of registration as a broker.

(2) A TRE certificate issued under Section 5, may only be transferred once in a manner as may be prescribed:

Provided that transfer of the TRE certificate by a registered broker shall result in the cancellation of his registration as broker.

(3) Any fit and proper person who acquires a TRE certificate from an initial shareholder in accordance with sub-section (2), shall gel himself registered as a broker not later than six months from the date of acquiring the TRE certificate, and shall commence business not later than twelve months from the date of acquiring the TRE certificate.

(4) A stock exchange shall not issue new TRE certificates to any person until 30th June, 2010 unless two-third majority of TRE certificate holders of a stock exchange decide otherwise.

(5) After 1st July, 2010 till 31st December, 2019, a stock exchange shall offer for issuance fifteen TRE certificates each year in the manner prescribed by the Commission

(6) After 2019, no restriction shall be placed on the issuance of TRE certificates by the stock exchange, and any person who meets the fit and proper criteria for registration as a broker shall be eligible to be issued a TRE certificate.

(7) Any person who is issued a new TRE certificate shall get himself registered as a broker not later than six months from the date of issuance of such TRE certificate and shall commence business not later than three months from the date of registration as a broker.

(8) After the date of demutualization, only a private company or a public company as defined in the Companies Ordinance, 1984 (XLVII of 1984) shall be eligible to obtain registration as a broker on a stock exchange:

Provided that any TRE certificate holder who is registered as a broker on a stock exchange on the date of commencement of this Act shall not be required to convert in to corporate brokerage house till one year from the commencement of this Act.

Explanation.—For the purpose of this sub-section the expression "Corporate brokerage house" means a private company or a public company which is registered as a broker.

(9) All Corporate brokerage houses shall comply with the provisions of the Code of Corporate Governance issued by the Commission as amended from time to time.

(10) Except as provided in sub-section (2) all TRE certificates shall be nontransferable.

(11) Failure of a person, holding a TRE certificate including an initial shareholder, to get himself registered as a broker or commence business within the different periods specified in this section, or in the case of an initial shareholder, to transfer the TRE certificate within two years from the date of demutualization, shall result in the lapse of such TRE certificate.

(12) The Commission shall prescribe the manner, form and procedures for the transfer and issuance of any TRE certificate in any stock exchange.

CHAPTER-IV

INTEGRATION

17. Integration without application to the Court—(1) Any two or more stock exchanges may, upon filing of a scheme of integration, and after compliance with such procedures as may be prescribed, be integrated by an order of the Commission, so as to transfer and vest in the successor stock exchange ("the successor stock exchange") all the assets, undertakings and liabilities of any stock exchange which, upon such integration, is proposed to cease to exist ("the transferor stock exchange"), Stock exchanges desirous of integrating may also do so by creating a new legal entity to which the assets, undertakings and liabilities of each of the stock exchanges may be transferred.

(2) A scheme of integration may only be submitted to the Commission under sub-section (1) after it has been approved by a special resolution of the shareholders of each stock exchange.

(3) The successor stock exchange, if already registered as a stock exchange, shall not be required to apply to the Commission for fresh registration. Where however, a new legal entity is created as a result of integration, such entity shall apply for registration as a stock exchange under Section 5 of the Securities Ordinance. The registration granted to any existing stock exchange which ceases to exist after the integration shall lapse upon such integration.

18. Power of the Commission to approve a scheme of integration.—(1) On receipt of a scheme of integration under Section 17, the Commission may approve the scheme in principle. Upon such approval, the stock exchanges shall publish the scheme of integration in two daily newspapers of national coverage, requiring the stakeholders to intimate directly to the Commission in writing, within the 15th day from the date of such publication, the reasons, if any, why the Commission should not approve the scheme of integration. Upon receipt of any written objections to the scheme of integration, the Commission shall provide a reasonable opportunity of being heard to such objectors.

(2) The Commission may make such inquiry and obtain such further information, us it may deem necessary, in order to determine as to whether to finally approve the scheme of integration or not.

(3) The Commission may, if satisfied that the requirements of the prescribed procedure have been complied with, approve the scheme of integration with such modifications, if any, as it may deem appropriate, and specify the effective date of integration.

(4) Where a scheme of integration is approved under sub-section (3), it shall be posted on the website of the Commission and published in the official Gazette. In addition, the stock exchange shall publish the approved scheme in two daily newspapers of national circulation.

(5) With effect from the date of the order of approval of the scheme of integration, notwithstanding anything to the contrary contained in any other law for the time being in force or any agreement, award, judgment or decree, the scheme of integration shall have effect and shall be binding on all persons interested in the transferor stock exchange or the successor stock exchange (or the new legal entity as the case may be) including all shareholders, stakeholders and employees of the stock exchanges and all persons having an interest in any asset, undertaking or liability of either the transferor stock exchange or the successor stock exchange (or the new legal entity as the case may be).

(6) Notwithstanding anything to the contrary contained in any other law for the time being in force, with effect from the date of the order approving the scheme of integration. All the assets, undertakings and liabilities of the transferor stock exchange shall, in accordance with the scheme of integration, stand transferred to, and vest in, the successor stock exchange, and the transferor stock exchange shall, with effect from the date of such order, cease to exist.

(7) The stakeholders of the transferor stock exchange shall, with effect from the date of the order approving the scheme of integration, become the stakeholders of the successor stock exchange or the new legal entity as the case may be.

(8) The Commission may make such further or consequential orders or give such directions, as it deems necessary, in order to effect the integration of the stock exchanges in accordance with the approved scheme of integration.

(9) Where the Commission is satisfied that it would not be in the interest of either the capital and stock markets or the general public to approve the scheme, it may by an order in writing, reject the scheme:

Provided that the Commission shall, prior to issuance of such order, give a reasonable opportunity of being heard to the stock exchanges seeking integration.

CHAPTER-V

OFFENCES AND PENALTIES

19. Powers of the Commission.—(1) Where the Commission is satisfied that a stock exchange, a director of a stock exchange, committee member, shareholder. TRE certificate holder or any other person, has prima facie committed an offence under this Act or has contravened any provision of this Act or the regulations hereunder, the Commission may provide a reasonable opportunity of hearing to the stock exchange, the director, a shareholder TRE certificate holder or committee member as the case may be.

(2) If after giving a reasonable opportunity of hearing to the stock exchange, its directors, shareholders, TRE certificate holders or committee member as the case may be, the Commission is satisfied that any of the aforementioned persons has knowingly and willfully committed an offence under this Act, it may.—

(a) direct the stock exchange to pay to the Commission by way of penalty a sum not exceeding twenty million rupees or suspend or cancel the registration of the stock exchange;

(b) direct each director responsible for such failure to pay to the Commission from his own sources by way of penalty a sum not exceeding one million rupees or suspend or remove such director from the Board of the stock exchange;

(c) direct each shareholder guilty of an offence under this Act to pay to the Commission from his own sources by way of penalty a sum not exceeding one million rupees;

(d) direct each TRE certificate holder guilty of an offence under this Act to pay to the Commission from his own sources by way of penalty a sum not exceeding one million rupees; and

(e) direct each committee member guilty of an offence under this Act to pay to the Commission from his own sources by way of penalty a sum not exceeding one million rupees.

(3) Any sum directed by the Commission to be paid under sub-section (2) shall be recoverable by the Commission as arrears of land revenue.

(4) Notwithstanding anything to the contrary contained herein, the Commission may, if it is satisfied that a TRE certificate holder, whether or not he is a shareholder of the stock exchange, has wilfully and knowingly failed to comply with the provisions of this Act. suspend or cancel the TRE certificate.

CHAPTER-VI

MISCELLANEOUS

20. Restriction on amendments to the Memorandum and Articles and further issue of capital.—(1) A stock exchange shall not make any amendments to its Memorandum and Articles of Association without the prior written approval of the Commission,

(2) A stock exchange shall not issue further shares without the prior written approval of the Commission.

21. Winding up of a stock exchange.—A stock exchange shall not commence any proceedings for winding up, whether voluntary or otherwise, without the prior written approval of the Commission:

Provided that notwithstanding anything contained in any other law for the time being in force, the Commission shall have the power to take all necessary steps to rehabilitate a stock exchange that is facing financial or operational problems, in a manner as may be prescribed.

22. Prohibition on sale etc of assets of the stock exchange.—No stock exchange shall sell immovable assets owned by the stock exchange at the date of corporatisation without the prior approval of the Commission and shall ensure that all assets are utilized in furtherance of the business of the stock exchange.

23. Power to make regulations.—The Commission, may, by notification in the official Gazette, make regulations for carrying out the purposes of this Act.

24. Power to give directions.—(1) The Commission shall have the power to give such directions to a stock exchange, either jointly or severally, or to a shareholder, or a committee member, or a TRE certificate holder as the Commission deems necessary for achieving the purposes of this Act.

(2) The stock exchange, shareholder, TRE certificate holder or committee member to which a direction is issued under this section or any other section of this Act shall be bound to comply with the same and failure of a stock exchange, shareholder. TRE certificate holder or committee member to comply with any such direction shall be an offence under tins Act.

25. Act to override other laws.—The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

26. Savings.—Save as otherwise provided in his Act, nothing in this Act shall curtail of deem to affect or Curtail the powers of the Commission under the Securities and Exchange Commission of Pakistan Act, 1997 (XII of 1997), the Companies Ordinance, the Securities Ordinance or any other law for the time being in force.

27. Removal difficulty.—It any difficulty arises in giving effect to the provisions of this Act, the Federal Government may, not inconsistent, with the provisions of this Act, give such directions as it may consider necessary for the removal of such difficulty.

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REGULATIONS, 2012

COMPANIES (INVESTMENT IN ASSOCIATED COMPANIES OR ASSOCIATED UNDERTAKINGS) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 17^th January, 2012]

S.R.O. 27(I)/2012, dated 16.1.2012.—In exercise of powers conferred by clause (b) of sub-section (2A) of Section 208 read with Section 506A of the Companies Ordinance, 1984, (XLVII of 1984) and having being previously published in the official Gazette vide Notification No. S.R.O.82(1)/2010 dated February 9, 2011 as required by subsection (1) of Section 506Aof the said Ordinance XLVII of 1984 the Securities and Exchange Commission of Pakistan hereby makes the following Regulations, namely:—

CHAPTER I

PRELIMINARY

1. Short title, commencement and application.—(1) These Regulations shall be called the Companies (investment in Associated Companies or Associated Undertakings) Regulations, 2012.

(2) These Regulations shall come into force at once.

(3) These Regulations shall apply to all companies seeking to invest in their associated companies or associated undertakings except and to the extent they are specifically exempted by the Commission under clause (a) of sub-section (2A) of Section 208 of the Companies Ordinance, 1984, (XLVII of 1984).

2. Definitions.—(1) In these Regulations, unless there is anything repugnant in the subject or context,—

(a) "Equity Investment" includes investment by way of subscription of shares directly from the Company and/or acquisition of shares from a person or through stock market;

(b) "Loans and Advances" include,--

(i) Loan or advance given by the Company;

(ii) a guarantee, indemnity or any other financial engagement which a company may give, issue or undertake on behalf of a borrower; and

(iii) transfer of liabilities from associated company or associated undertaking;

(2) Words and expressions used but not defined in these Regulations shall, unless these is anything repugnant in the subject or context, have the same meaning assigned to them in the Companies Ordinance, 1984, the Securities and Exchange Ordinance, 1969 (XVII of 1969) or the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997).

CHAPTER II
NOTICE OF MEETING AND INFORMATION TO MEMBERS

3. Information to be disclosed to members.—(1) A company shall, while issuing notice of its general meeting where a special business related to investments in any of its associated companies or associated undertakings is to be transacted under Section 208 of the Ordinance, annex a statement pursuant to clause (b) of sub-section (1) of Section 160 of the Ordinance, setting out, among other, the following information, namely,—

(a) In case of investment in securities of its associated companies or associated undertakings,-—

(i) name of the associated company or associated undertaking along with criteria based on which the associated relationship is established;

(ii) purpose, benefits and period of investment;

(iii) maximum amount of investment;

(iv) maximum price at which securities will be acquired;

(v) maximum number of securities to be acquired;

(vi) number of securities and percentage thereof held before and after the proposed investment;

(vii) in case of investment in listed securities, average of the preceding twelve weekly average price of the security intended to be acquired;

(viii) in case of investment in unlisted securities, fair market value of such securities determined in terms of Regulation 6(1);

(ix) break-up value of securities intended to be acquired on the basis of the latest audited financial statements;

(x) earning per share of the associated company or associated undertaking for the last three years;

(xi) sources of fund from which securities will be acquired;

(xii) where the securities are intended to be acquired using borrowed funds,—

(I) justification for investment through borrowings; and

(II) detail of guarantees and assets pledged for obtaining such funds;

(xiii) salient features of the agreement(s), if any, entered into with its associated company or associated undertaking with regards to the proposed investment;

(xiv) direct or indirect interest of directors, sponsors, majority shareholders and their relatives, if any, in the associated company or associated undertaking or the transaction under consideration;

(xv) any other important details necessary for the members to understand the transaction; and

(xvi) In case of investment in securities of a project of an associated company or associated undertaking that has not commenced operations, in addition to the information referred to above, the following further information, is required, namely,—

(i) description of the project and its history since conceptualization;

(ii) starting and expected dated of completion of work;

(iii) time by which such project shall become commercially operational; and

(iv) expected time by which the project shall start paying return on investment;

(b) In case of loans and advances,—

(i) name of the associated company or associated undertaking along with criteria based on which the associated relationship is established;

(ii) amount of loans or advances;

(iii) purpose of loans or advances and benefits likely to accrue to the investing company and its members from such loans or advances;

(iv) in case any loan has already been granted to the said associated company or associated undertaking, the complete details thereof;

(v) financial position, including main items of balance sheet and profit and loss account of the associated company or associated undertaking on the basis of its latest financial statements;

(vi) average borrowing cost of the investing company or in case of absence of borrowing the Karachi Inter Bank Offered Rate for the relevant period;

(vii) rate of interest, mark up, profit, fees or commission etc. to be charged;

(viii) sources of funds from where loans or advances will be given;

(ix) where loans or advances are being granted using borrowed funds,—

(i) justification for granting loan or advance out of borrowed funds;

(ii) detail of guarantees / assets pledged for obtaining such funds, if any; and

(iii) repayment schedules of borrowing of the investing company;

(x) particulars of collateral security to be obtained against loan to the borrowing company or undertaking, if any;

(xi) if the loans or advances carry conversion feature i.e. it is convertible into securities, this fact along with complete detail including conversion formula, circumstances in which the conversion may take place and the time when the conversion may be exercisable;

(xii) repayment schedule and terms of loans or advances to be given to the investee company;

(xiii) salient feature of all agreements entered or to be entered with its associated company or associated undertaking with regards to proposed investment;

(xv) any other important details necessary for the members to understand the transaction; and

(xvi) in case of investment in a project of an associated company or associated undertaking that has not commenced operations, in addition to the information referred to above, the following further information is required, namely,—

(i) a description of the project and its history since conceptualization;

(ii) starting date and expected date of completion;

(iii) time by which such project shall become commercially operational;

(iv) expected return on total capital employed in the project; and

(v) funds invested of to be invested by the promoters distinguishing between cash and non-cash amounts:

(i) name of the associated company or associated undertaking along with criteria based on which the associated relationship is established;

(ii) description of liabilities to be transferred and consideration to be received by the company for assuming liabilities of associated company/ undertaking;

(iii) book value of liabilities to be transferred;

(iv) purpose of such transfer of liabilities;

(v) period, if any, for which such transfer of liabilities is to be made;

(vi) salient features of all agreements entered into with the associated company or associated undertaking or with the financial institution(s) with regards to proposed transfer of liabilities;

(vii) direct or indirect interest of directors, sponsors, majority shareholders and their relatives in the associated company or associated undertaking or the transaction under consideration; and

(viii) any other important details necessary for the members to understand the transaction.

(2) A listed company shall simultaneously dispatch a copy of aforesaid notice and the statement of material facts to the head office of the Securities and Exchange Commission of Pakistan, through fax/email and courier service.

(3) The directors of the investing company while presenting the special resolution for making investment in its associated company or associated undertaking shall submit an undertaking to the members of the investing company that they have carried out necessary due diligence for the proposed investment.

(4) The duly signed recommendations of the due diligence report referred to in sub-regulation (3) shall be made available to the members for inspection in the general meeting called for approval of the special resolution.

4. Other information to be disclosed to the members.—(1) If the associated company or associated undertaking in which the investment is being made or any of its sponsors or directors is also a member of the investing company, the information about interest of the associated company or associated undertaking and its sponsors and directors in the investing company shall be disclosed in the notice of general meeting called for seeking members' approval pursuant to Section 208 of the Ordinance.

(2) In case any decision to make investment under the authority of a resolution passed pursuant to provisions of Section 208 of the Ordinance is not implemented either fully or partially till the holding of subsequent general meeting(s), the status of the decision must be explained to the members through a statement having the following details namely,—

(a) total investment approved;

(b) amount of investment made to date;

(c) reasons for not having made complete investment so far where resolution required it to be implemented in specified time; and

(d) material change in financial statements of associated company or associated undertaking since date of the resolution passed for approval of investment in such company.

5. Audited Financial Statements.—Duly audited latest annual financial statements of the associated company or associated undertaking along with the latest reviewed financial statements, if any, shall be made available for inspection of the members in the general meeting called for considering investment decisions pursuant to Section 208 of the Ordinance.

CHAPTER III

RESTRICTIONS & CONDITIONS

6. Conditions applicable to a company making investment in securities of its associated companies or associated undertakings.—(1) In case of investment in unlisted equity securities of an associated company or associated undertaking, the fair value for such securities shall be determined based on generally accepted valuation techniques and latest audited financial statements of the associated company or associated undertaking, by,—

(i) a chartered accountant firm, which must have been given a satisfactory rating under the Quality Control Review Program of Institute of Chartered Accountants of Pakistan; or

(ii) a Non-banking finance company licensed by the Commission to carry out the business of investment finance services which has been assigned a minimum rating of "A+" or equivalent by a credit rating company registered with the Commission, and has been in operation for at least five years.

(2) In case the price to be paid for unlisted equity securities of an associated company or associated undertaking is different from the fair value as determined in terms of sub-regulation (1) above, an explanation along with justification, reasons and basis of determination of price shall be disclosed to the members.

(3) Where approval is granted by the members for investment in securities of an associated company or associated undertaking up to a certain limit, such approved limit shall stand exhausted upon the investment reaching that limit on a cumulative basis, whether such investment is made as a whole or on a piecemeal basis and such approval shall not be valid for any recurring investment even after divestment of the securities acquired by it in pursuance of the aforesaid approval.

(4) Share deposit money shall be transferred for equity investment only after announcement of the offer for issue of shares by the associated company or associated undertaking and in case shares are not issued within ninety days of transfer of share deposit money such share deposit money shall be treated as loan and interest/mark up thereon shall be charged from the date of transfer of funds in accordance with the provisions of Section 208 of the Ordinance.

7. Conditions & restrictions applicable to companies making investment by way of loans and advances in its associated companies or associated undertakings.—A company intending to make investment in its associated company or associated undertaking shall comply with the following conditions and restrictions, namely—

(a) If the investing company has no borrowings, the rate of return on loans / advances shall not be less than Karachi Inter Bank Offered Rate for the relevant period:

Provided that where a company uses Shariah compliant mode of financing, the transactions shall be structured in such a way that the rate of return on such facilities is not less than that earned by Islamic Financial Institutions in Pakistan on similar facilities during the corresponding time period;

(b) In case of unfunded facilities (for example a guarantee, letter of indemnity, etc.) the rate of return shall be determined based on the rate of interest, mark up, profit, fees or commission etc., as the case may be, charged by commercial banks or Islamic Financial Institutions on similar unfunded facilities;

(c) Interest, mark up, profit, fees or commission etc., as the case may be, shall be recovered periodically by the investing company in line with the standard terms normally applied by the commercial banks or the Islamic Financial Institutions on similar facilities extended to the borrowers;

(d) The company shall not invest in its associated company or associated undertaking by way of loans or advances except in accordance with an agreement in writing and such agreement shall inter-alia include the terms and conditions specifying the nature, purpose, period of the loan, rate of interest, mark up, profit, fees or commission, repayment schedule for principal and interest, mark up, profit, fees or commission, penalty clauses in case of default or late repayments and security for the loan in accordance with the approval of the members in the general meeting; and

(e) The company shall not extend to its associated company or associated undertaking any loan or advance as running finance, revolving line of credit or any other similar facility for a period beyond one year provided that members may approve renewal of such loan or advance.

8. Other conditions and restriction.—(1) Unless otherwise specifically authorised by the members in the general meeting the special resolution authorizing investment in associated companies or associated undertakings shall be valid for a period of twelve months and shall stand lapsed after such period; and

(2) A company shall not make any further investment in its associated company or associated undertaking in which previous investment has been written off by the investing company, or which is already indebted to the company and such associated company or associated undertaking has failed to repay the loan or advance including interest, mark up, profit, fees or commission etc. thereon as per schedule or has failed to comply with any of the terms and conditions of the agreement in this regard, unless such loan has been rescheduled under approval of special resolution of the members of the investing company.

CHAPTER IV
MAINTENANCE OF RECORD

9. Register of Investments in associated companies or associated undertaking.—(1) In addition to any records maintained by an investing company under the provisions of any law, rules or regulations, such company shall also maintain at all times at its registered office, a register showing separately investment in each associated company or associated undertaking including but not limited to investment in securities, loans and advances, guarantee or security given, investment through transfer of liabilities etc. containing at least the following information,—

(a) the name of the associated company or associated undertaking;

(b) amount, terms and purpose of the investment, loan, security or guarantee;

(d) the date on which the guarantee has been given or security has been provided in connection with a loan; and

(e) particulars relating to repayment of principal, mark up, other monetary receipts, disposal of investment, redemptions etc.

(2) The particulars of all the investments referred to in sub-regulation (1) shall be entered chronologically in the register immediately after making of such investment or effectuating any subsequent transactions relating to such investments, as the case may be.

(3) The provisions applicable to inspection of register under the Ordinance shall apply to the inspection of the register maintained under sub-regulation (1).

10. Repeal.—The notification S.R.O 865(1)/2000, is hereby repealed.

----------------------------

REGULATIONS, 2012

INSURANCE COMPANIES (SOUND AND PRUDENT MANAGEMENT) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 9^th January, 2012]

S.R.O. 15(I)/2012.—In exercise of the powers conferred by clause (f) of sub-section (1) of Section 7, Section 12 and sub-section (3) of Section 167 of the Insurance Ordinance, 2000 (XXXIX of 2000) read with Section 40 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) and having been previously published in the newpapers of wider circulation as required by sub-section (2) of Section 40 of said Act XLII of 1997, the Securities and Exchange Commission of Pakistan, with the approval of the Policy Board, hereby makes the following regulations, namely:--

1. Short title and commencement.—(1) These Regulations shall be called the Insurance Companies (Sound and Prudent Management) Regulations, 2012.

(2) They shall come into force at once.

2. Application and scope. (1) These Regulations shall be applicable to the following persons:

(i) chief executive, by whatever name called and principal officer of the insurer;

(ii) directors of the insurer; and

(iii) Key Officers of the insurer.

Explanation: "Key Officer" includes, the persons discharging the following functional responsibilities,—

(a) chief operating officer, head of operation, by whatever name called;

(b) chief financial officer, head of accounts, by whatever name called;

(d) head of law, company secretary or compliance officer;

(e) chief investment officer, head of investments, by whatever name called;

(f) head of internal audit;

3. That I have no objection if the Securities and Exchange Commission of Pakistan requests or obtains information about me from any third party.

4. That I undertake to bring to the attention of the Securities Exchange Commission of Pakistan any matter which may potentially affect my status for the position of ____________ as per the Insurance Companies (Sound and Prudent Management) Regulations, 2012.

5. That all the documents provided to Securities Exchange Commission of Pakistan are certified true copies of the originals.

___________
DEPONENT

The Deponent is identified by me

Signature _____________
ADVOCATE

(Name and Seal)

Solemnly affirmed before me on this ______ day of ________ at by the Deponent above named who is identified to me by ________, Advocate, who is known to me personally.

Signature _________________
(Name and Seal)

-------------------------------

NOTIFICATION

INTELLIGENCE BUREAU (IB) FOUNDATION

[Gazette of Pakistan, Extraordinary, Part-I, 20^th March, 2012]

S.R.O. 30(KE)/2012 :

Whereas, the Director-General, Intelligence Bureau, Islamabad has applied for the vesting in the Treasurer of Charitable Endowments for Pakistan of the amount of one million rupees to be applied by the Federal Government in trust for a charitable purpose known as "Intelligence Bureau Foundation", the objects of which would extend to the whole of Pakistan;

Now therefore, in exercise of the powers conferred by sub-section (1) of Section 4 of the Charitable Endowments Act, 1890 (VI of 1890), the Federal Government is pleased to direct that the said amount shall vest in the Treasurer of Charitable Endowments for Pakistan and the said amount and the income thereof shall be applied in accordance with the terms of a scheme specified in the Schedule below, to be settled under Section 5 of the said Act, namely:—

THE SCHEDULE

SCHEME OF ADMINISTRATION FOR INTELLIGENCE BUREAU FOUNDATION

1. Short title and commencement.—(1) This Scheme may be called the Intelligence Bureau (IB) Foundation.

(2) It shall come into force at once.

2. Definition.--(1) In this Scheme, unless there is anything repugnant in the subject or context,--

(a) “Act" means the Charitable Endowments Act, 1890 (VI of 1890);

(b) "beneficiaries" means persons,--

(i) who have served or are serving in the Intelligence Bureau or its field formations as employees of the Intelligence Bureau;

(ii) who have served or are serving on deputation or cadre post in Intelligence Bureau, anywhere in Pakistan;

(iii) who are or have been on deputation to any other departments from Intelligence Bureau wherein they have retained their permanent lien of service; and

(iv) dependents of persons indicated in-sub-clauses (1), (ii) and (iii).

(d) "Committee" means the Committee of Administration;

(e) "dependents" means the spouse or spouses, dependent parents, dependent sons and unmarried, widowed or divorced daughters of the beneficiaries;

(f) "Foundation" means the Intelligence Bureau Foundation;

(g) "IB" means the Intelligence Bureau, Government of Pakistan, Islamabad;

(h) "Managing Director” means the managing director of the Foundation; and

(i) "Secretary" means the Secretary of the Committee of Administration.

(2). All other words and expressions used, but not defined herein, shall have the same meanings as are assigned to them under the Act.

3. Aims and objects of the Foundation.—The following shall be the aims and objects of Foundation, namely:

(a) to extend and improve medical facilities for serving and retired beneficiaries;

(b) to advance, whether as a loan or stipend, grants to the dependents of beneficiaries for the purpose of education in approved Institutions;

(c) to provide for construction of low-cost houses of various categories and their sale in terms and conditions to be decided by the Committee to beneficiaries;

(d) to provide any other facility or help which the Committee may decide from time to time and which comes under the broad terms of "Welfare" of the beneficiaries;

(e) to initiate and maintain help and support services for routine domestic and personal affairs of IB employee;

(f) to keep IB employees informed about all information of their interest immediately and on a regular basis;

(g) to guide and assist in economic empowerment of beneficiaries, such as Initiating business projects;

(h) to explore and provide financial and knowledge support for education and job for the dependents of beneficiaries;

(i) to arrange and provide opportunities for IB employees to enhance their education while in service;

(j) to provide high quality subsidized house hold stuff to IB employees and thus sewing them from economic punch of increasing prices;

(k) to receive and administer funds for the foregoing, health, educational and charitable objects and to that end take and hold, by request, device, gifts, purchase or lease, either absolutely or in trust any property, real, personal or mixed, without limitation as to amount or value, except such limitations, if any, as may he imposed by laws to sell, convey, dispose of any such property and to invest and re-invest the principal in income thereof to deal with and expand the principal and income of the Foundation for any of the aforementioned object and purposes as may be contained in the instruments under which property is received of the other limitations imposed by law;

(l) to receive any property, real, personal, or mixed, in trust under the terms of any will, deed of trust, or other trust instrument for the foregoing objects or any of them (but for no other purpose) and in administering the same to carry out the directions and exercise the powers contained in the trust instrument under which the property if received including the expenditure of the principal as well as the income for one or more objects, or such objects as authorized or directed in the instrument under which it is received;

(m) to receive the title to hold, and use the proceeds and income of stocks, bonds, obligations, or other securities of any Government or Corporations, domestic or foreign, for the foregoing purposes; and

(n) to undertake, do and perform all such acts, matters or things in general, as may be desirable or necessary in the opinion of the Committee for the accomplishment of foregoing purposes or any of them and, in particular but without prejudice to generality of the foregoing, to enter into contracts, to undertake financial and commercial obligations, to borrow or raise or secure the payment of money, to sell, exchange, mortgage, let or lease the property and accounts of the Foundation, to purchase, take on lease or tenancy or in exchange, hire, take over option, or otherwise require any estate interest or property and to hold develop, deal with, turn to account any property, assets, or rights, real or personal or any kind and in the directions of the Committee to apply the assets of the Foundation in or towards the establishment of any association and institution the objects or purposes of which are in accordsance with the objects of the Foundation.

4. Administration of Foundation.—(1) The Foundation shall be administered by a Committee of Administration consisting of the following members, including the Chairman, by virtue of their office, namely:--

(a) DG IB Chairman

(b) Senior most JDG of IB HQ Vice-Chairman

(d) JDG/DDG, PPHQ Member

(e) JDG/DUG, SPHQ Member

(f) JDG/DDG, BPHQ Member

(g) JDG/DDG, KPHQ Member

(h) JDG/DDG, NR HQ Member

(i) JDG/DDG, CR HQ Member

(j) five retired officers not less than
the BPS-20 (to be nominated
by Chairman) Member

(k) Managing Director IB Foundation Member

(l) Secretary Member

(2) The Managing Director shall be appointed by the Chairman on the recommendation of the Committee from among the retired or serving officers of IB, not below the rank of BPS-21.

(3) The Secretary shall be appointed by the Chairman, on the recommendation of the Committee from among the serving or retired officers of IB, not below the rank of BPS-20.

(4) The Chairman, may convene meetings of the Committee at such time and place, as he may deem necessary and convenient for the transaction of business.

(5) The Chairman, and in his absence, the Deputy Chairman, shall convene and preside over the meeting.

(6) Eight members shall form of quorum at a meeting of the Committee, provided that Chairman or Vice Chairman shall be one of the eight members.

(7) The Chairman shall exercise a casting vote in case of a tie in a meeting.

(8) The Chairman shall be the head of the Foundation and, through the Managing Director, shall have the management and control of the Foundation and its properties and assets.

5. Powers and functions of the Committee.—(1) The Committee shall have the powers and discretion to utilize, apply and invest the corpus of the Foundation and its income in such manner, as it may consider proper.

(2) Without prejudice to the generality of the foregoing powers, the Committee may,--

(a) purchase, sell, endorse, transfer, negotiate or otherwise deal in Securities of the Government of Pakistan and any other securities of any description;

(b) raise loans for its various enterprises and undertakings and may for this purpose, pledge, hypothecate or otherwise charge the corpus and the properties of the Foundation;

(d) open current, fixed overdraft, loan, cash credit and other accounts with any bank or banks as may be necessary and to pay into and to draw out money from such accounts;

(e) make, draw, endorse, sign, accept, negotiate and give-all cheques, bills of lading drafts, orders bills of exchange, Government Securities, promissory notes and other negotiable instruments;

(f) the Committee may appoint, sub-Committees to transact business and may delegate any of its powers to any of such sub-Committee or any member or officer of such sub-Committee;

(g) the Committee may delegate any of the powers to member or members or to any officer or employee in the employments of the Committee or any of its undertakings and for this purpose may execute or authorize execution of any powers of Attorney of other instruments;

(h) the Committee shall have powers to create posts appoint, remove or suspend such officers and agents, managements, secretaries, clerks and servants for permanent, temporary, or special services to work for remuneration or gratuitously as the Committee may, from time to time, think fit and may determine their powers and duties; and

(i) the Committee shall at all times confirm to and abide by the rules framed under Section 13 of the Act.

6. Welfare Endowment Fund.—Initially a sum of one million rupees has been vested as IB-Foundation Endowment Fund in the name of Treasurer IB-Foundation vide bank Draft No. P.O. 2048379, dated 9th January, 2011, drawn at Askari Bank F-10, Markaz Branch, Islamabad, Pakistan. This amount is kept as IB-Welfare Endowment Fund and shall not be utilized for any other purpose.

7. Audit of accounts.—The accounts of the Foundation shall be audited annually by the Auditor General of Pakistan.

8. Winding up.—(1) The assets and liabilities of any project or activity of the Foundation shall vest in the Committee in case of winding up of such project or activity.

(2) The assets and liabilities of the Foundation shall revert to IB in the case of winding up of the Foundation.

-----------------------------------

RULES, 2012

PAKISTAN TELECOMMUNICATION EMPLOYEES TRUST FUND (PENSION) RULES, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 22^nd May, 2012]

S.R.O. 525(I)/2012.—In exercise of the powers conferred by subsection (9) of Section 44 of the Pakistan Telecommunication (Re-organization) Act. 1996 (XVII of 1996), the Board of Trustees with the approval of the Federal Government, is pleased to make the following rules, namely:—

1. Short title and commencement.—(1) These rules may be called the Pakistan Telecommunication Employees Trust Fund (Pension) Rules, 2012.

(2) They shall come into force at once.

2. Definitions.—(1) In these rules, unless there is something repugnant in the subject or context.

(a) "Act" means the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996);

(b) "Annexure" means as annexure to these rules;

(d) "child" means a legitimate child and includes an adopted child, provided the Company recognises and accepts him under the personal law as a natural child;

(e) "pensionable pay" for the purpose of pension calculations-means the salary of a beneficiary at the time of retirement and only includes—

(i) basic pay;

(ii) personal pay;

(iii) technical pay;

(iv) special pay;

(v) senior post allowance;

(vi) indexation of pay;

(vii) officiating pay, qualification pay, substantive pay. good conduct pay or incentive pay;

(viii) increment accrued during leave preparatory to retirement; and

(ix) any other pay received by a beneficiary, which may be included in eligible salary, by the Board;

(f) "employer" means the Company;

(g) "Fund" means the Pakistan Telecommunication Employees Trust Pension Fund, governed by these rules and managed by the Board of Trustees and includes Trust money or property;

(h) "gratuity" means the lump sum payment made under these rules in lieu of pension;

(i) ''manager" means the manager of the Trust appointed under clause (b) of sub-Section 5 of Section 44 of the Act but no manager shall be a beneficiary;

(j) "member" means a beneficiary having a beneficial interest in the Fund, but does not include an employee,—

(i) who was entitled to opt for the pensionary scheme as allowed by Pakistan Telecommunication Corporation from time to time, but failed to opt as such;

(ii) who held or holds a non-pensionable post in the Corporation or the Company;

(iii) who is or was employed on contract or temporary basis; or

(iv) of the Company employed after the 1^st January, 1996;

(k) "misconduct" means misconduct as defined in the Company service regulations and any other law for the time being applicable to the Company and its employees including a beneficiary;

(l) "pension" means the sum payable by way of pension under these rules;

(m) "pensionable service" means the period of service of a beneficiary with the Corporation and the Company as a regular employee against a permanent or pensionable post;

(n) "pensioner" means a retired employee of the Pakistan Telecommunication's Telephone and Telegraph Department, Corporation or a Telecommunication employee, who is, for the time being, in receipt of pension and fulfils the requirements of the beneficiaries;

(o) "representative" means the legal personal representative of a pensioner;

(p) "spouse" means the lawfully wedded spouse of a beneficiary recognised by the Company, but does not include a divorced or judicially separated spouse. The decision of the Board of Trustees, as to whether a spouse was judicially separated from the beneficiary, shall be final;

(q) "Telecommunication employee" means employee of the Corporation who is transferred to the employment of the Company under the Act; and

(r) "trustees" means the trustees appointed under sub-section (3) of Section 44 of the Act, but no beneficiary can be a trustee.

(2) The terms used but not defined herein shall have the same meanings as are assigned to them under the Act.

3. Information and documentary evidence.—(1) Every beneficiary or other person claiming or entitled to benefits under these rules, shall furnish to the Company, such information and documentary evidence as required by the Company.

(2) In particular and without prejudice to the-powers and discretions conferred by these rules on the Company, each beneficiary shall (in the form set out in the Annex-iv) file a statement of his spouse and children.

(3) A beneficiary employed with the Company in BPS 1 to 17, if entitled to pension, shall provide relevant documents of eligibility, duly signed by the concerned General Manager of the Company, to the Trust, while those in BPS 18 and above, shall provide similar documentation to the Trust after processing from the concerned Department of the headquarters of the Company.

4. Retirement.—(1) A beneficiary shall stand retired from service of the Company on completion of sixtieth year of his age, provided that nothing in this rule shall be deemed to restrict or modify the Company's right to terminate a beneficiary's service earlier or to retire the beneficiary earlier than the sixtieth year of age.

(2) A beneficiary shall be deemed to have retired from service of the Company, when he is rendered unfit for service on any of the medical grounds as set out in Annex-III or dies while in service or his services are terminated on any ground, except as a result of disciplinary action on account of misconduct, fraud, defalcation or corruption.

(3) A beneficiary against whom disciplinary proceedings are pending or are in progress, shall not be allowed to proceed on retirement, until those proceedings are completed.

(4) If a beneficiary attains the age of retirement or dies during the course of such proceedings, he shall be deemed to have retired from service.

(5) A beneficiary who resigns from service or whose services are terminated as a result of disciplinary proceedings in connection with misconduct, fraud, defalcation or corruption, shall not be entitled to pension or gratuity. If, such beneficiary is re-instated by the Company, his entitlement to pension or gratuity, shall stand restored,

5. Pre-mature retirement.—(1) Notwithstanding anything contained in these rules or terms and conditions of service, all beneficiaries shall have the right to opt for retirement after completing twenty-five years of qualifying service. A beneficiary who opts to retire after completing twenty-five years of service, but before attaining the age of superannuation shall, at least three months before the date on which he intends to retire, submit a written intimation to the Company, indicating the date on which he intends to retire:

Provided that such intimation shall not be submitted before completing twenty-five years of service:

Provided further that the right to seek pre-mature retirement shall not be available to a beneficiary, against whom a departmental enquiry or criminal ease is pending.

(2) After submission of intimation for exercising such option if, a beneficiary intends to withdraw his application for pre-mature retirement or to modify the date of retirement, before its acceptance by the Company, he may do so by submitting a written request. On receipt of the application, the Company allow the withdrawal of the same or modify it, as decided by the competent authority of the Company.

(3) Application for leave preparatory to retirement shall be made by a beneficiary, after exercising the right to seek retirement as provided in sub-rule (1).

(4) The authority, to accept the request for pre-mature retirement after completion of twenty-five years of service shall rest with the President of the Company or such other official, nominated in this behalf by the President of the Company.

6. Family pension.—(1) In case of the death of a beneficiary while in service, gratuity in lieu of one-fourth of the gross pension shall be allowed at the rates shown in Annex-II. In addition, family pension shall be admissible at fifty percent of gross pension to the widow for life or until her re-marriage whichever is earlier. In case of death of the widow, family pension shall be admissible to the sons, if any, until they attain the age of twenty one years and to un-married daughters, if any. until they are married.

(2) In the case of death after retirement, family pension at fifty percent of the net or gross pension, as the case may be, shall be admissible to the legal heirs under sub-rule (1).

7. Rate and scale of pension.—(1) The rate and scale of pension shall be as specified in the Annexure-I.

(2) The gross pension shall be calculated at the rate of seventy percent of the last pensionable pay drawn by a beneficiary on completion of thirty years qualifying service. Sixty five percent of gross pension shall be payable as net pension. Where qualifying service is less than thirty years but not less than ten years, the pension shall be calculated at the percentage applicable, according to the length of service. The pensioners shall be allowed to draw full gross pension. The compensation pension, superannuation pension, invalid pension and retiring pension shall be calculated as set out in Annex-1.

(3) All spells of continuous service of one year or more rendered by a beneficiary shall count and qualify for pension or gratuity as the case may be. In calculating the total length of service for the purpose of the admissibility of pension or gratuity, the period of interruption of service and leave without pay shall be excluded. The total service calculated shall be rounded off to the nearest full year. A period of less than six months shall be ignored for this purpose and six months or more, counted as a full year.

(4) Any increase in pension of the pensioners may be allowed from time to time, as determined exclusively by the Board of Trustees in its sole discretion.

(5) A beneficiary shall not be entitled to receive pension if is in the employment of the Company.

8. Commutation after ten years service.—The commutation up to thirty-five percent of the gross pension shall be admissible, as shown in the Annex II. The commutation shall not be subject to medical certification, if it is asked for within one year of retirement. The payment in such cases shall become absolute on the date of application by the pensioner. The Concession of commutation, without medical certification, is not admissible to those beneficiaries who retire on invalid pension.

9. Time of payment of pension.—(1) Any pension paid under Rule 4, shall be payable commencing on the first day of the month next following the date on which the beneficiary entitled thereto retires from the Company service and ceasing with the last payment due, prior to the death of such beneficiary.

(2) Any family pension paid under Rule 6, shall be paid on the first day of the month following the death of the beneficiary, to the spouse or other dependants entitled thereto under these rules and shall cease upon the death or re-marriage of the spouse or attainment of maturity or marriage of the child or children, as the case may be.

10. Pensionary benefits not transferable.—(1) Benefits whether vested or prospective and all other benefits conferred by these rules, shall not be assignable or chargeable.

(2) Where a beneficiary becomes insolvent or at any time assigns or charges or purports to assign or charge any sum receivable by him from the Trust or shall do or suffer anything whereby such sum would, but for this rule, become, vested in or payable to any other person, then such beneficiary's interest in such sum shall cease to be payable.

(3) In a special case of mental or physical ill-health or incapacity or in case of death after cessation of service of a beneficiary, the Board of Trustees may, if it thinks such a course to be advisable in the interest of any beneficiary or his widow, children or dependents.—

(i) instead of paying the benefits conferred by these rules to him, pay or apply the same or any part thereof to or for the benefit of such beneficiary; and

(ii) or the wife, children or other dependents of such beneficiary as the Board of Trustees shall think proper.

(4) In case, it is not possible to make payment to a person legally authorised to receive the same on behalf of a minor or incapacitated person, the Board of Trustees may in its discretion, make payment to some other person, upon receiving such indemnity as the Board of Trustees may deem fit.

11. Repeal.—The rules of Pakistan Telecommunication Corporation Employees Pension Fund, 1994 forming part of the Trust Deed are hereby repealed.

ANNEX-I

[see rule 7 (1)1]

PENSION TABLE

Completed years of Qualifying service	Scale of pension expressed as Fraction of average emolument
1	2
10	70/300
11	77/300
12	84/300
13	91/300
14	98/300
15	105/300
16	112/300
17	119/300
18	126/300
19	133/300
20	140/300
21	147/300
22	154/300
23	161/300
24	168/300
25	175/300
26	182/300
27	189/300
28	196/300
29	203/300
30 and above	210/300

ANNEX - II

[see Rule 6 (1) and 8]

COMMUTATION TABLE

Age next Birthday	Factor	Age next Birthday	Factor	Age next Birthday	Factor
20	40.5043	41	24.6406	62	11.3684
21	39.7341	42	23.9126	63	10.8872
22	38.9653	43	23.1840	64	10.4191
23	38.1974	44	22.4713	65	9.9639
24	37.4307	45	21.7592	66	9.5214
25	36.6651	46	21.0538	67	9.0914
26	35.9006	47	20.3555	68	8.6742
27	35.1372	48	19.6653	69	8.2697
28	34.3750	49	18.9841	70	7.8778
29	33.6143	50	18.3129	71	7.4983
30	32.8071	51	17.6526	72	7.1314
31	32.0974	52	17.0050	73	6.7766
32	31.3412	53	16.3710	74	6.4342
33	30.5869	54	15.7517	75	6.1039
34	29.8343	55	15.1478	76	5.7858
35	29.0841	56	14.5602	77	5.4797
36	28.3362	57	13.9888	78	5.1854
37	27.5908	58	13.4340	79	4.9030
38	26.8482	59	12.8953	80	4.6321
39	26.1009	60	12.3719
40	25.3728	61	11.8632

Note 1: Age is the age of a beneficiary on his next birthday. A beneficiary retiring after the age of 60 years shall, however, be allowed commuted value of pension as applicable at the age of 60 years, instead of at the age of 61 years, if he applies for commutation while in service.

2: Factor is the number of years' purchase.

ANNEX-III

[See Rule 4(2))]

PART-I

CLASSIFICATION OF DISABILITY

Class "A" 1. Loss of a hand and a foot or loss of use of two or more limbs.

2. Total loss of eye-sight.

3. Total loss of speech.

4. Total deafness of both ears.

5. Paraplegia or hemiplegia.

6. Lunacy,

7. Very severe facial disfigurement.

8. Advanced cases of incurable disease/s.

9. Wounds, injuries of diseases resulting in a disability due to which a person becomes incapacitated.

10. Emasculation.

Note:— Wounds, injuries or disease of limb, resulting in damage to nerves, joints or muscles, making the whole of limb useless would mean loss of that limb.

Cases in which a partial function is retained will not be included in this class.

However, if the partial retention of function does not help in walking, in case of leg or does not help in holding an object, even with partial efficiency, it should be considered as total loss of function.

Those cases will also be included in this class, where the earning capacity of the officer / executive has been totally impaired due to the disability.

Class 'B' 1. Loss of thumb or at least three fingers of hand.

2. Partial loss of one or both feet at or beyond tarsometatarsal joint.

3. Loss of vision of one eye.

4. Loss of all toes of one or both feet.

Class 'C’ 1. Limited restriction of movement of joint due to injuries.

2. Disease of a limb, restricting performance of duties.

General Note: When the wound, injury or illness causing the disability, is not entered in the above Schedule, the disability shall be assessed by a Medical Board at the classification, most closely corresponding to those given above.

PART-II

PRINCIPLES AND PROCEDURE FOR DETERMINING ATTRIBUTABILITY TO SERVICE OF DISABILITY

CASUALTIES DUE TO WOUND OR INJURY

1. It should be established in such cases, that the cause of the casualty was the result of duty in service.

2. Where the injury resulted from the risk inherent in service, attributability will be conceded.

3. An individual is on duty for 24 hours of the day expect when on leave other than casual leave.

4. An individual will be deemed to be in the performance of duty when:--

i. He is physically present in his headquarters;

ii. He is travelling or on leave at Company's expense;

iii. When travelling to or from duty (e.g. from residence to place of duty and back but not whilst he is in his residence;

iv. Whilst travelling on duty, i.e. where it is established that but for the duty, he would not have been travelling at all.

5. Disability resulting from purely personal acts, such as shaving or similar private pursuits, would not be treated as attributable to service.

6. Disability resulting from violence, provoked by performance of duty will be viewed as attributable to .service, unless the circumstances of the case warrant a different conclusion.

7. If circumstances are such that service played no part in the causation of disability, attributability will not be conceded.

Illustration: If a person driving a motor cycle etc. on duty collides with a truck, the injury received may be attributed to service but if he is out for a walk and sustains injury from a passing truck, his case will not qualify for the concession.

CASUALTIES DUE TO DISEASE

(a) The cause of disability resulting from a disease, will be regarded as attributable to service, only when it is directly due to risks, which may be regarded as peculiar to the circumstances of duty in service.

In determining attributability in such cases, due regard would be paid to the question whether service in a particular region, or of a particular type, involved exposure to exceptional risk of contraction of or infection by a disease/s, as well as to the actual circumstances of the case.

(b) Attributability will not be conceded if, though contracted during the period of actual performance of duty, the disease is, in the opinion of the medical authorities concerned, due to risks, which cannot be regarded as peculiar to such duty in service.

(d) All cases of tuberculosis and bronchial asthma will be accepted as attributable to or aggravated by service, where the medical opinion is in favour of acceptance.

(e) Attributability/Aggravation in all cases of cardiac disease will be determined, in accordance with the guide lines given below.

(f) Where medical or other supporting documents are incomplete cases will be dealt with on merits, with due regard to medical opinion and other evidence.

GUIDE LINES FOR DETERMINING ATTRIBUTABILITY/ AGGRAVATION IN CASE OF CARDIAC DISEASES

1. There are many pre-disposing factors which may precipitate an attack of coronary occlusion.

No single factor can be pin-pointed as being responsible for such an attack. It is, therefore, not easy to lay down any hard and fast rule for presuming attributability/aggravation in such cases. For the guidance of medical and administrative authorities, some of the factors which may precipitate the attack of heart disease, are slated below.

i. Physical Exertion: Coronary occlusion is known to have precipitated during or immediately following physical exertion. Physical exertion may not necessarily be of an unusual character i.e. lifting of a heavy bundle, pushing a stalled vehicle or an up-hill climb, have in many instances been followed by an attack of coronary occlusion.

The effects of exertion are worse, if the individual is unduly fatigued, has lack of sleep or is under emotional stress.

Attributability will be conceded, if a person undergoing stress and strain, pressure and counter pressure by virtue of the nature of his duties, develops psychiatric problem.

ii. Emotional Strain: The occurrence of coronary diseases in persons who had been under an unusually severe and protracted emotional strain, points to a probable relationship between the two. Separation from families, uncongenial atmosphere, frequent moves, all add to mental strain and psychological trauma.

2. The question of attributability / aggravation of heart disease on occurrence in otherwise a normal individual, who is subjected to the above mentioned factors would have to be considered and decided in the light of known medical history and merits of each case.

3. While dealing with such cases, due precaution shall be exercised by all concerned, to carefully bring out details of the merits of the case, so as to award of attributability / aggravation.

ANNEX-IV

[See rule 3 (2)]

LIST OF FAMILY MEMBERS
OF

MR. _____________________

Sr. No	Name	Relation	Age	Marital Status	Profession

Mst………………

Address…………..

-----------------------------

Province/Area	General Seats	Women Seats	Non-Muslim	Total
Balochistan	51	11	3	65
Khyber Pakhtunkhwa	99	22	3	124
Punjab	297	66	8	371
Sindh	130	29	9	168

S.No.	Province/Area	General Seats	Women Seats	Total
1.	Balochistan	14	3	17
2.	Khyber Pakhtunkhwa	35	08	43
3.	Punjab	148	35	183
4.	Sindh	61	14	75
5.	Federally Administered Tribal Areas	12	-	12
6.	Federal Capital	02	-	02
	Total	272	60	332: