ORDINANCE NO. X OF 2013

CRIMINAL LAW (AMENDMENT) ORDINANCE, 2013

An Ordinance further to amend the Pakistan Penal Code, 1860 and the Code of Criminal Procedure, 1898

[Gazette of Pakistan, Extraordinary, Part-I, 31^st December, 2013]

No. F. 2(1)/2013-Pub.--The following Ordinance promulgated by the President is hereby published for general information:--

WHEREAS it is expedient further to amend the Pakistan Penal Code, 1860 (Act, XLV of 1860) and the Code of Criminal Procedure, 1898 (Act V of 1898), for the purposes hereinafter appearing;

AND WHEREAS the Senate and the National Assembly are not in session and the President is satisfied that circumstances exist which render it necessary to take immediate action;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following Ordinance:-

1. Short title and commencement.--This Ordinance may be called the Criminal Law (Amendment) Ordinance, 2013.

(2) It shall come into force at once.

2. Addition of a new Chapter, Act XLV of 1860.--In the Pakistan Penal Code, 1860 (XLV of 1860), after Chapter XVII A, the following new chapter shall be inserted, namely:--

“CHAPTER XVII-B”

OF OFFENCES RELATING TO ELECTRICITY

462-G. Definitions.--In this Chapter, unless there is anything repugnant in the subject or context,--

(a) "Court" means the court of sessions designated as Electricity Utilities Court empowered to take cognizance of an offence under this Chapter;

(b) "consumer" means a person or his successor in interest who purchases or receives electric power for consumption and not for delivery or re-sale to others, including a person who owns or occupies a premises where electric power is supplied;

(c) "distribution" means the ownership, operation, management or control of distribution facilities for the movement or delivery or sale to consumers of electric power but shall not include the ownership, operation, management and control of distribution facilities located on private property and used solely to move or deliver electric power to the person owning, operating, managing and controlling those facilities or to tenants thereof;

(d) "distribution facilities" means electrical facilities operating at the distribution voltage and used for the movement or delivery of electric power;

(e) "electric meter" means an instrument which measures electricity delivered to the consumer for consumption including kilowatt meter, kilowatt hour meter; kilowatt ampere hour meter, kilowatt ampere reactive hour meter, current transformers, potential transformers, maximum demand indicator or any other measuring apparatus;

(f) "electric supply-line" means a wire, conductor or other means used for conveying, transmitting, or distributing energy together with any casing, coating, covering, tube, pipe or insulator, enclosing, surrounding or supporting the same or any part thereof, or any apparatus connected therewith for the purpose of so conveying, transmitting or distributing such energy;

(g) "electric power" means electrical energy or the capacity for the production of electrical power;

(h) "electric power services" means the generation, transmission or distribution of electric power and all other services incidental thereto;

(i) "energy" means electrical energy when generated, transmitted, distributed, supplied or used for any purpose;

(j) "Government" means the Federal Government;

(k) "licence" means a licence issued for generation, transmission or distribution under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997);

(l) "licensee" means a holder of a licence;

(m) "person" includes any individual or any company, firm or corporation whether incorporated or not, or a public servant or an employee of any, company, licensee or electric power utility;

(n) "service line" means any electric supply-line through which energy is, or is intended to be, supplied by a licensee:--

(i) to a single consumer either from a distributing main or immediately from the licensee's premises; or

(ii) from a distributing main to a group of consumers on the same premises of on adjoining premises supplied from the same point of the distributing main;

(o) "tampering" or "tamper" includes interfering or creating hindrance in flow or metering of electric power by unauthorized entry or access into metering system or transmission and distribution lines either by breaking the seals or damaging or destructing the same or in any manner interfering with the electric meter or transmission line or distribution line or interfering with its original condition;

(p) "tariff means the rates, charges terms and conditions for generation of electric power, transmission, inter-connection, distribution services and sales of electric power to consumers by a licensee;

(q) "transmission" means the ownership, operation, management or control of transmission facilities;

(r) "transmission facilities" means electrical transmission facilities including electrical circuits, transformers and sub-stations operating at or above the minimum transmission voltage; and

(s) "works" includes electric supply-lines and any buildings, machinery or apparatus required to supply energy.

462-H. Abstraction or tampering etc. with transmission.--(1) Any person who:

(a) dishonestly taps, makes or causes to be made any connection with overhead, undergrounds under water lines or cables, or service lines, electric supply-line or transmission facilities of a licensee for transmission of electric power services, or any other related system and equipment, as the case may be, so as to abstract, use or consume electricity without passing through the electric meter is said to cause abstraction; or

(b) willfully tampers or attempts to tamper with service line, electric supply-line or transmission facilities for transmission of electric power, is said to cause tampering.

(2) Any person who causes or abets in causing abstraction or commits or abets in committing tampering with transmission of electric power for the purpose:--

(a) theft of electric power; or

(b) disrupting supply of electric power; or

shall be punishable with rigorous imprisonment which may extend to three years or with fine which may extend to ten million rupees or with both.

462-I. Abstraction or tampering etc. with distribution or auxiliary.--(1) Any person who:--

(a) dishonestly taps, makes or causes to be made any connection with overhead, underground or under water lines or cables, or service lines, electric supply.line or distribution facilities of a licensee for distribution of electric power services so as to abstract, use or consume electricity without passing through the electric meter is said to cause abstraction; or

(b) willfully tampers or attempts to tamper with service line, electric supply-line or distribution facilities for distribution of electric power services, or any other related system and equipment, as the case may be, for distribution of electric power services is said to cause tampering ' with auxiliary or distribution of electric power.

(2) Any person who causes or abets in causing abstraction or commits or abets in committing tampering with distribution of electric power for the purpose:--

(a) theft of electric power; or

(b) disrupting supply of electric power; or

shall be punishable with rigorous imprisonment which may extend to three years or with fine which or may extend to three million rupees or with both.

462-J. Interference, improper use or tampering with electric meter by domestic consumer, etc.--Any person being the domestic consumer who:

(a) unauthorizedly connects any electric meter with any electric line through which electricity is supplied by. a licensee or disconnects the same from any such electric line without the consent of the licensee; or

(b) unauthorizedly reconnects any electric meter with any electric line or other works being the property of a licensee when the said electric line or other works has or have been cut or disconnected without the consent of the licensee; or

(c) tampers with an electric meter, installs or uses a tampered electric meter, current reversing transformer, loop connection or any other device or method, contrivance or artificial means which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in a manner whereby electricity is stolen or wasted; or

(d) uses the energy supplied by a licensee under one method of tariff in a manner for which higher tariff is in force; or

(e) uses energy supplied by a licensee in a manner prejudicial to the safety or efficient working of the electric supply-line or deals with it in a manner so as to interfere with efficient supply of energy to other consumers, or persons; or

(f) abets in the commission of any of the acts mentioned in clauses (a) to (e),

in order to commit theft of electric power, or dishonestly abstract, consume or use electric power or unauthorized distribution or supply of electric power shall be punishable with imprisonment for a term which may be extend to two years or with fine which may extend to one million rupees or with both.

462-K. Interference, improper use or tampering with electric meter by industrial or commercial, etc.--Any person being industrial or commercial who:

(a) unauthorizedly connects any electric meter with any electric line through which electricity is supplied by a licensee or disconnects the same from any such electric line without the consent of the licensee; or

(c) tampers with an electric meter, installs or uses a tampered meter, current reversing transformer, loop connection or any other device or method, contrivance or artificial means which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in a manner whereby electricity is stolen or wasted; or

(d) uses the energy supplied by a licensee under one method of tariff in a manner for which higher tariff is in force; or

(e) lays, or causes to be laid, or connects up any works for the purpose of communicating with any other works belonging to a licensee without consent; or

(f) uses energy supplied by a licensee in a manner prejudicial to the safety or efficient working of the electric supply-line or deals with it in a manner so as to interfere with efficient supply of energy to other consumers, persons; or

(g) abets in the commission of any of the acts mentioned in clauses (a) to (f),

in order to commit theft of electric power, or dishonestly abstract, consume or use electric power or unauthorized distribution or supply of electric power shall be punished with imprisonment which may extend to three years or with fine which may extend to six million rupees or with both.

462-L. Interference, improper use or tampering with electric meter by agricultural consumer, etc.--Any person being agricultural consumer who:--

(c) tampers with an electric me^er, installs or uses a tampered meter, current reversing transformer, loop connection or any other device or method, contrivance or artificial means which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in a manner whereby electricity is stolen or wasted; or

(d) uses the energy supplied by a 1 icensee under one method of tariff in a manner for which higher tariff is in force; or

(e) lays, or causes to be laid, or connects up any works for the purpose of communicating with any other works belonging to a-licensee without consent; or

(g) abets in the commission of any of the acts mentioned in clauses (a) to (f),

in order to commit theft of electric power, or dishonestly abstract, consume or use electric power or unauthorized distribution or supply of electric power shall be punished with imprisonment which may extend to two years or with fine which may extend to two and half million rupees or with both.

462-M. Damaging or destroying or destructing the transmission lines, distribution lines, electric meters etc.--Any person who damages, destroys or destructs any transmission lines, distribution lines, electric meter, apparatus, equipment, or wire or causes or allows any of them to be so damaged, destroyed or destructed by an act of subversion by explosive material or in any other manner so as to disrupt the supply of electric power services or maliciously causes electric power services to be wasted or diverted or cuts off or injures or attempts to cut off or injure any transmission line or distribution line or a service line or electric supply-line shall be punished with rigorous imprisonment which may extend to seven years and with fine which shall not be less than three million rupees.

462-N. Recovery of outstanding amounts from persons involved in Section 462H to 462M offences.--Any person said to commit or to have committed the offence as mentioned in Section 462H to 462M shall also be liable to pay an amount equivalent to the financial loss caused to the Government or the distribution companies concerned. Any such outstanding amount or penalties / fines imposed under this Chapter shall be recoverable as arrears of land revenue.

462-O. Cognizance.--(1) The Court shall try an offence punishable under this Chapter.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 or any other law for the time being in force, the Court shall not take cognizance of an offence under this Chapter except on a complaint made, with reasons to be recorded in writing along with full ul particulars of the offence committed under this Chapter, by duly authorized officer (not below Grade 17) of the Government or the distribution company, as the case may be.

3. Overriding effect.--The provisions of this Chapter shall have effect notwithstanding anything contained in any other law for the time being in force.

4. Amendment of Schedule II, Act V of 1898.--In the Code of Criminal Procedure, 1898 (Act V of 1898),--

(a) in Schedule II, in column I, after Section 462 F and the corresponding entries relating thereto to in columns 1,2,3,4,5,6,7 and 8, the following shall be inserted, namely:--

“CHAPTER XVII-B
OFFENCES RELATING TO ELECTRICITY

462-H	Abstraction or tampering etc. with transmission	May arrest without warrant	A warrant shall not ordinarily issue in the first instance	Not Bailable	Not comp-oundable	Rigorous imprison-ment for three years or with fine upto three million rupees or with both	Court of Session designated as Electricity Utilities Court
462-I	Abstraction of tampering etc. with distribution or auxiliary	Ditto	Ditto	Ditto	Ditto	Rigorous imprison-ment for three years or with fine upto three million rupees or with both.	Ditto.
462-J	Interference, improper use or tampering etc. with electric meter by domestic consumer, etc.	Ditto	Ditto	Ditto	Ditto	Imprison-ment upto two year or fine upto one million rupees or with both.	Ditto.
462-K	Interference, improper use or tampering etc. with electric meter by industrial or commercial, etc.	Ditto	Ditto	Ditto	Ditto	Imprison-ment for three years or with fine upto six million rupees or with both.	Ditto.
462-L	Interference, improper use or tampering etc. with electric meter by agricultural consumer.	Ditto	Ditto	Ditto	Ditto	Imprison-ment for two years or with fine upto two and half million rupees or with both.	Ditto.
462-M	Damaging or destroying the transmission lines, distribution lines, electric meters etc.	Ditto	Ditto	Ditto	Ditto	Rigorous imprison-ment for seven years and with fine not less than three million rupees.	Ditto.

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RULES, 2013

PROTECTION OF PAKISTAN RULES, 2013

[Gazette of Pakistan, Extraordinary, Part-II, 5th December, 2013]

S.R.O. 1037(I)/2013.--In exercise of powers conferred by sub-section (3) of Section 1 of the Protection of Pakistan Ordinance, 2013 (IX of 2013), the Federal Government is pleased to notify the 5th December, 2013 as the date on which all the provisions of the said Ordinance shall come into force.

S.R.O. 1038 (I)/2013.--In exercise of the powers conferred by Section 20 of the Protection of Pakistan Ordinance, 2013 (IX of 2013), the Federal Government is pleased to make the following rules, namely:-

1. Short title, application and commencement.--(1) These rules may be called the Protection of Pakistan Rules, 2013--

(2) They shall apply to every court, authority or agency established under the Protection of Pakistan Ordinance, 2013 (IX of 2013) and to all the persons working thereunder or connected therewith.

(3) They shall come into force at once.

2. Definitions.--In these rules, unless the context otherwise requires,--

(a) "Joint Investigation Team" means the Joint Investigation Team constituted under sub-section (2) of Section 5 of the Ordinance;

(b) "Ordinance" means the Protection of Pakistan Ordinance, 2013 (IX of 2013);

(c) "Police Station" means a police station established by the Government under the Ordinance and includes a police station established by a police force of any Province of Pakistan, Federal Investigation Agency or any other-law enforcing agency especially authorised by the Government in this regard;

(d) "Prosecutor General" means the Prosecutor General appointed under sub-section (1) of Section 11 of the Ordinance for a period specified in sub-rule (3) of Rule 4; and

(e) "Regional Prosecutor General" means an officer to assist the Prosecutor General of the Prosecuting Agency in the performance of his functions and to supervise the work of Public Prosecutors and persons concerned with prosecution working under him.

3. Regional headquarter.--(1) The Government may establish as many regional headquarters as it may direct for the administrative control, supervision and co-ordinated performance of Joint Investigation Teams and may also determine the territorial jurisdiction of a regional headquarter. In this regard the Government if it so deem fit may consult Provincial Government concerned.

(2) The regional headquarter shall discharge its functions and duties under administrative control of the Government and shall also maintain a liaison with office of the Prosecutor General and office of the concerned Regional Prosecutor General.

(3) The Government may appoint an officer of police service of Pakistan not below the rank of DIG to act as incharge of a regional headquarter.

(4) A district police officer or any other gazetted officer upon registration of FIR at a police station under his direct control, relating to the commission of a scheduled offence, shall immediately forward a copy of the said report to the concerned regional headquarter and to office of the concerned Regional Prosecutor General.

(5) The incharge of regional headquarter upon receipt of copy of the FIR relating to commission of scheduled offence or on his own information where the commission of a scheduled offence is suspected shall immediately constitute a Joint Investigation Team.

(6) The members of Joint Investigation Team shall be authorised to exercise in respect of scheduled offences all the powers of a police officer described in the Code.

4. Prosecuting Agency.--(1) The Prosecuting Agency shall consist of Prosecutor General and such number of Regional Prosecutors General and Public Prosecutors as the Government may determine from time to time.

(2) Subject to general control of the Government, the administration of the Prosecuting Agency shall vest in the Prosecutor General.

(3) The Prosecutor General shall be appointed by the Government for a period of three years and Regional Prosecutors General and Public Prosecutors shall be appointed by the Government for a period as the Government may determine. Where considered appropriate, the Government may seek assistance and co-operation of the Provincial Government concerned in the appointment of Public Prosecutors.

(4) The Government may, for reasons to be recorded in writing and after providing him an opportunity of being heard, remove Prosecutor General, Regional Prosecutor General and Public Prosecutor prior to completion of his term on the ground of misconduct, inefficiency or physical infirmity.

(3) The Prosecutor General, Regional Prosecutor General and Public Prosecutor may, by writing under his hand addressed to the Government, resign from his office.

(6) No person shall be appointed as Regional Prosecutor General unless he is not less than forty years of age and is or has been an advocate of a High Court for a period of not less than seven years.

(7) No person shall be appointed as Public Prosecutor unless he is not less than thirty-five years of age and is or has been an advocate of a High Court for a period of not less than five years.

(8) The Government shall determine the salary, allowances and other benefits of the Prosecutor General, Regional Prosecutors General and Public Prosecutors at the time of their appointment.

(9) The Government shall appoint as many persons as it may determine, from time to time, to perform the ministerial functions and duties in the offices of Prosecuting Agency and the Government shall determine their salary, allowances and other benefits.

(10) The head office of Prosecutor General shall be established at Islamabad and the offices of Regional Prosecutors General shall be established at the places determined by the Government.

(11) The Government shall determine the territorial jurisdiction of the Regional Prosecutors General.

(12) The Government may provide professional training courses for the capacity building of Regional Prosecutors General, Public Prosecutors and the members of Joint Investigation Team.

5. Investigation.--(1) Upon receipt of FIR, the Regional Prosecutor General, under intimation to Prosecutor General, shall depute a Public Prosecutor to provide guidance to the Joint Investigation Team constituted on all legal issues.

(2) The Joint Investigation Team may solicit the opinion of the Prosecutor General, the Regional Prosecutor General or the concerned Public Prosecutor at any stage of investigation.

(3) The Joint Investigation Team shall conclude the investigation within thirty days and shall place it before the concerned Public Prosecutor:

Provided that where the investigation is not completed within a period of thirty days, the Joint Investigation Team shall, within three days after expiration of said period, forward through the Public Prosecutor, an interim report under Section 173 of the Code of Criminal Procedure and the Special Court may commence the trial on the basis of such interim report, unless for reasons to be recorded, the Special Court decides that trial may not so commence.

(4) The Public Prosecutor shall scrutinise the report of Joint Investigation Team, examine the evidentiary material available on the record and submit the report to the Regional Prosecutor General and if it is found to be sufficient by the Regional Prosecutor General for the purpose of prosecution, he shall require the Public Prosecutor to submit the report for prosecution before the Special Court and the accused shall also be produced before the Court on the same day:

Provided that the concerned Public Prosecutor or the Regional Prosecutor General may direct the removal of any defect in the report and may issue appropriate instructions for the completion of case file and the Joint Investigation Team shall comply with such directions and instructions:

Provided further that the process of scrutiny and filing of the report before the Special Court shall be completed within a period not exceeding seven days.

(5) The concerned Public Prosecutor or Regional Prosecutor General may send a report to the Prosecutor General complaining against the conduct of any member of Joint Investigation Team for any defective, negligent or inefficient investigation.

(6) The Prosecutor General upon receipt of report under sub-rule (5) may forward a complaint to the Government for disciplinary action against such member of the Joint Investigation Team under the law or rules applicable to him.

6. Ascertainment of identity of a person arrested or detained.--A person arrested or detained whose identity is required to be ascertained by virtue of sub-section (5) of Section 5 of the Ordinance shall be afforded reasonable opportunity of hearing and production of evidence regarding his identity, in rebuttal, if any.

7. Proceedings before Special Court.--(1) On taking cognizance of the case, the Special Court shall provide copies to the accused as required under Section 265-C of the Code of Criminal Procedure on the same day and the case shall be fixed for commencement of the trial not later than seven days and the Special Court shall summon the prosecution witnesses. The Judge of the Special Court shall also on the same day appoint an advocate to defend the accused at State expense and shall also inform the accused that he has a right to engage a counsel of his own choice but no adjournment shall be granted to avail this opportunity:

Provided that no advocate shall be appointed as defence counsel at State expense who is not advocate of a High Court and has not practiced for a period of not less than five years.

(2) The evidence of a prosecution witness, if so requested by the Public Prosecutor, shall be recorded through video link.

(3) The Public Prosecutor shall ensure attendance of the prosecution witnesses and production of the case property.

(4) After commencement of trial, the proceedings shall be conducted on day-to-day basis but if there are compelling reasons the case may be adjourned for a period of not exceeding three days:

Provided that request for adjournment sought shall be made in writing.

(5) The Judge of the Special Court shall conclude the trial within thirty days and shall take all necessary steps to avoid any delay in conclusion of the trial.

(6) The process issued by the Judge of the Special Court or Special Judicial Magistrate to ensure the attendance of a person or production of an article or document shall be transmitted, through the concerned Public Prosecutor, to the incharge of the police force in the district where the process is required to be served or executed.

(7) The District Police Officer shall be responsible for the service and execution of process issued by Special Judicial Magistrate or a member of Joint Investigation Team within his territorial jurisdiction.

(8) The Public Prosecutors shall be responsible for independent and efficient prosecution of the cases.

(9) After pronouncement of the judgement of a case by the Special Court, the Public Prosecutor shall immediately send a copy of the judgement to the office of Regional Prosecutor General alongwith his comments and draft of performa of proposed appeal.

(10) The Government may, in writing, authorise Prosecutor General, Regional Prosecutor General, Public Prosecutor or an advocate of Supreme Court to file an appeal against a judgement or order passed by the Special Court.

8. Withdrawal of a case by the Prosecutor General.--The Prosecutor General may withdraw a case from one special court and submit the same before another special court with the prior approval of the Government or an officer not below the rank of BPS-20 authorised by the Government in writing in this behalf.

9. Protection of Judges, Investigating Officer, Prosecutors and witnesses etc.--(1) The Government may, with the consent of the concerned Provincial Government, declare any central prison as high security prison and the Provincial Government shall take adequate steps for its protection and security.

(2) The Government may establish court rooms within the premises of high security prison and may also provide facility of recording of evidence through video link.

(3) The Government may establish safe houses for the lodgement of prosecution witnesses and if required their families during the period of investigation and trial and if so required post-trial protection may also be extended to a prosecution witnesses if he has supported the charge against the accused for such period as the Government may determine.

(4) The Government may also provide financial assistance to the prosecution witnesses for the period during which they are constrained from perusing their normal course of business.

(5) The Regional Prosecutor General on the report of Joint Investigation Team or on the basis of information or intelligence supplied by any other Governmental agency shall certify to the Government that the witness or his family members face serious threats upon which the Government shall take appropriate steps to protect lives and properties of the said witnesses and their family members.

(6) After close of prosecution evidence in a scheduled offence, the Public Prosecutor shall certify to the Regional Prosecutor General that the witnesses have supported the charge and if a witness deliberately resiles from his evidence the Public Prosecutor Shall immediately report to the concerned Regional Prosecutor General for necessary legal action under the such witness.

(7) The Government shall provide adequate number of security guards to the Judges of Special Court, Special Judicial Magistrates, and Prosecutors and, if so required, to the prosecution witnesses.

(8) The Government may take such other measures which may be necessary for the protection of Judges, Investigation Officers, Prosecutors and witnesses. These measures may include the following, namely:--

(i) proceedings may be held in camera, or under restricted entry of members of the public, where necessary,

(ii) the names of judges, prosecutors, witnesses and persons concerned with Court proceedings may not be published;

(iii) screens may be used during trial to shield Judges, prosecutors and witnesses from public view;

(iv) trial may be held in jail premises or through video link;

(v) video conferencing may be allowed in order to secure the protected person; and

(vi) witness may be allowed to--

(a) establish a new identity (sic) Government shall extend all possible assistance;

(b) conceal his identity by changing his voice or wearing a mask during investigation or trial.

10. Security of tenure for the Judges of Special Courts and the Special Judicial Magistrates.--(1) The Judges of Special Court and the Special Judicial Magistrates shall be appointed for a period of three years.

(2) The Government shall determine the salary, allowances and other benefits for the Judges and the Judicial Magistrates which shall not be varied to their disadvantage during the tenure of their office.

(3) A serving Judge shall not be repatriated without consent of the Chief Justice of High Court concerned.

(4) The Government may appoint as many persons as it may determine from time to time as ministerial staff to the Special Courts and the Regional Headquarters and may also determine their salary, allowances and other benefits.

11. Removal.--No person appointed under the Ordinance shall be removed from service save in accordance with the efficiency and discipline rules applicable to him.

S.R.O. 1039(I)/2013.--In exercise of powers conferred by Section 6 of the Protection of Pakistan Ordinance, 2013 (IX of 2013), the Federal Government is pleased to designate Mr. Muhammad Imtiaz Tajwar, Additional Secretary, Ministry of Interior to be an authorized officer for the purposes of the said section.

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REGULATIONS, 2013

ISSUE OF COMMERCIAL PAPERS
REGULATIONS, 2013

[Gazette of Pakistan, Extraordinary, Part-I, 5^th December, 2013]

S.R.O. 1036(I)/2013, dated 4.12.2013.--In exercise of the powers conferred by sub-section (1) of Section 506A of the Companies Ordinance, 1984 (XLVII of 1984), read with clause (a) of sub-section (4) of Section 20 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997), and having been previously published in the official Gazette vide Notification No. S.R.O.71(I)/2013 dated February 4, 2013 as required by sub-section (1) of Section 506A of the said Ordinance, the Securities and Exchange Commission of Pakistan hereby makes the following Regulations:--

CHAPTER I

PRELIMINARY

1. Short title and commencement.--(1) These Regulations shall be called the Issue of Commercial Papers Regulations, 2013.

(2) They shall come into force at once.

(3) They shall apply to all issues of commercial papers by any company and other body corporate.

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

(a) "Banking Company" shall have the same meaning as assigned to it in the Banking Companies Ordinance, 1962 (LVII of 1962);

(b) "Commercial Paper" means an unsecured instrument with a maturity period as provided in these Regulations;

(c) "Commission" means the Securities and Exchange Commission of Pakistan established under Section 3 of the Securities and Exchange Commission of Pakistan Act, 1997(XLII of 1997);

(d) "Company" shall have the same meaning as assigned to it in the Companies Ordinance, 1984 (XLVII of 1984);

(e) "Credit Rating Company" means a Credit Rating Company registered with the Commission under the Credit Rating Companies Rules, 1995;

(f) "DFI" means a development financial institution as notified by the State Bank of Pakistan from time to time;

(g) "equity" means and includes paid up share capital, reserves, sub-ordinated loans and un-appropriated profits (minus accumulated losses) excluding deferred tax reserves, surplus on revaluation of fixed assets account as described in Section 235 of the Ordinance and redeemable preference shares;

(h) "Financial Institution" means a financial institution as defined in the Financial Institutions (Recovery of Finances) Ordinance, 2001 and the Companies Ordinance, 1984 (XLVII of 1984);

(i) "Investment Finance Company" shall have the same meaning as assigned to it under the Non-Banking Finance Companies and Notified Entities Regulations, 2008;

(j) "Issuer" includes a company or body corporate that intends to raise short-term finance by issuing commercial paper;

(k) "Issuing and Paying Agent" means a Scheduled Bank, an Investment Finance Company or a DFI appointed under these Regulations as an Issuing and Paying Agent and having a minimum Credit Rating grade of "A-" (medium to long term) and "A2" (short term) obtained from any Credit Rating Company;

(l) "Ordinance" means the Companies Ordinance, 1984 (XLVII of 1984);

(m) "Qualified Institutional Buyer" means the persons mentioned in Section 120 of the Ordinance and notified thereunder from time to time as persons to whom any instrument in the nature of redeemable capital can be issued;

(n) "Registered Corporate Broker" means a company registered with the Commission under the Brokers and Agents Registration Rules, 2001;

(o) "Regulations" mean the Issue of Commercial Papers Regulations, 2013;

(p) "Scheduled Bank" means a scheduled bank as defined in the State Bank of Pakistan Act, 1956 (XXXII of 1956);

(q) '"Shelf Registration" means the process through which an issuer raises the total amount of an issue of a Commercial Paper in tranches over a maximum period of one year;

(r) "sub-ordinated loan" means the unsecured loan which does not require repayment (principal and/or markup) before maturity and repayment of the Commercial Paper, is documented by a formal sub-ordination agreement between provider of the loan and the issuer and disclosed in the audited financial reports of the issuer as sub-ordinated loan and/or so verified by the auditors certificate; and

(s) "Working Capital Limit" means the aggregate fund-based limits including those by way of purchase/discount of bills sanctioned by one or more financial institutions to a company for meeting its working capital requirements, and also includes any working capital term finance limits.

(2) All words and expressions used but not defined in these Regulations shall have the same meanings as assigned to them in the Ordinance, the Securities and Exchange Ordinance, 1969 (XVII of 1969) and the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997).

CHAPTER II
ISSUE OF COMMERCIAL PAPER

3. Conditions for issue of Commercial Paper.--Any company or body corporate can issue Commercial Paper if it fulfills the following conditions, namely:--

(a) it is authorized by its Memorandum and Articles of Association, or other constitutive document to issue Commercial Papers;

(b) its equity is not less than Rs. 25 million as per the latest audited balance sheet;

(c) it has obtained the entity credit rating from a Credit Rating Company and such rating is not less than "A-" (medium to long-term) and "A2" (short-term)^and more than six months old;

(d) it has a credit rating contract with its credit rating agency valid till the period not earlier than the date of the maturity of the Commercial Paper; and

(e) it has no overdue loans or defaults in the report obtained from the Credit Information Bureau of the State Bank of Pakistan and the said report is not more than two months old.

4. Period of Commercial Paper.--(1) The Commercial Paper shall be issued for maturities between minimum of 30 days and maximum of one year and the date of maturity shall be reckoned from the first day of subscription.

(2) Where the maturity date happens to be a holiday, the issuer shall make payment on the immediate following working day.

5. Size and Denomination of Commercial Paper.--(1) Size of an issue of Commercial Paper shall not be less than Rs.10 million and denomination of a Commercial Paper shall be its face value.

(2) Where Commercial Paper is issued through private placement it can be issued in denomination of Rs. 100,000 or in multiples thereof and where Commercial Paper is issued to general public it can be issued in denomination of Rs. 10,000 or multiples thereof.

6. Ceiling on amount of issue of Commercial Paper.--The aggregate amount of a Commercial Paper shall be within such limits as may be ' approved by its Board of Directors, provided the total liabilities of the issuer after the issue of such Commercial Paper do not exceed four times of the issuer's equity.

7. Mode of issue and discount rate.--The Commercial Paper shall be issued in scrip less form at such discount to face value as may be determined by the issuer keeping in view the prevailing Karachi Inter Banks Offer Rate (KIBOR) and its credit rating.

8. Issue expenses.--The issuer shall bear all the expenses relating to the issue of the Commercial Paper including the fees payable to the Issuing and Paying Agent and the Credit Rating Company concerned, and the stamp duty payable to the concerned provincial government under the Stamp Act, 1899(Act II of 1899) at the rates prescribed by them and any other relevant charges connected with such issue.

9. Investment in Commercial Paper.--Commercial Paper may be issued by way of public offer and/or through private placement to Qualified Institutional Buyers. In case of public offer approval of the Commission shall be sought under Section 57 of the Ordinance.

10. Procedure for issue of Commercial Paper.--(1) Every issuer shall appoint an Issuing and Paying Agent through an agreement in writing and the agreement executed shall contain all the basic terms and conditions and role and responsibilities of both the parties to the agreement.

(2) The Issuing and Paying Agent appointed under sub-regulation (1) shall not be associated company or associated undertaking of the issuer.

(3) Where the issue of Commercial Paper is through private placement it shall be completed within a period of two weeks from the date on which the issue opens for subscription and any unsold portion of the issue after two weeks of its opening for subscription shall not be issued.

(4) Where the issue of Commercial Paper is through public offer it should be completed within the time period as specified in the Ordinance.

(5) Where the issue of Commercial Paper is through private placement, the initial subscribers of Commercial Paper shall pay through the Issuing and Paying Agent the discounted value of the Commercial Paper by means of crossed cheque or any other mode acceptable to the Issuing and Paying Agent, to the account of the issuer.

(6) The issuer shall intimate in writing to all initial subscribers and all financial institutions, who have provided working capital limits to it, about the amount and tenure of the issue of Commercial Paper and copies of such intimation shall also be provided to the Issuing and Paying Agent.

(7) An issue of Commercial Paper may be underwritten if so desired by the issuer and in case thereof,--

(a) the number of underwriters should not be less than two; and

(b) the underwriters should not be associated companies or associated undertakings of the issuer.

11. Issue of Commercial Paper under Shelf Registration.--Where the issue of Commercial Paper is under Shelf Registration following conditions shall be fulfilled, namely,--

(a) Issuing and Paying Agent for all the tranches shall remain the same;

(b) complete plan for issue of Commercial Paper in tranches under the Shelf Registration (the Shelf Registration Plan) shall be dissiminated to the propsective investors through the websites of Issuing and Paying Agent and the issuer;

(c) change, if any, in the Shelf Registration Plan subsequent to its initial dissimination shall be dissiminated in the same manner as provided in clause (b);

(d) Issuing and Paying Agent, before the issue of first tranche, shall provide copy of the agreement executed with the issuer containing the term sheet and complete Shelf Registration Plan to the Commission; and

(e) Issuing and Paying Agent shall confirm in writing to the Commission before the launch of each tranche that the issuer fulfills all the conditions as mentioned in regulation 3 of the Regulations.

CHAPTER III

DUTIES AND RESPONSBILITIES OF ISSUER, ISSUING AND PAYING AGENT AND CREDIT RATING COMPANY

12. The duties and responsibilities of issuer, Issuing and Paying Agents and Credit Rating Company are set out as follow,--

(1) Issuer:--The issuer shall ensure that,--

(a) the Regulations and procedures laid down for the issuance of Commercial Paper are strictly adhered to;

(b) Issuing and Paying Agent is provided copies of all the investor agreements i.e. the agreements executed with the initial subscribers and the said agreements contain salient features and other terms and conditions of the issue including the following,-

(i) covenants of the issue of Commercial Paper;

(ii) non availability of any recourse to the initial subscribers on the issuer and Issuing and Paying Agent and to the subsequent purchasers on the sellers in the secondary market;

(iii) non availability of any guarantee by any bank on other financial institution;

(iv) default history of the issuer including rescheduling/ restructuring of loan for the last 5 years; and

(v) detailed provisions on rollover, if any.

(c) specimen of the investors' agreement between the issuer and the subscribers containing minimum terms and conditions is placed on its website and on the website of Issuing and Paying Agent for information of the investors;

(d) within five days of the close of subscription list, report to Issuing and Paying Agent and the Commission the following information, namely,--

(i) province and place of issue;

(ii) amount and rate of all Federal and Provincial levies paid if applicable; and

(iii) term sheet containing salient features of the issue.

(e) the Commercial Paper shall be redeemed through Issuing and Paying Agent; and

(f) roll over, if any, shall be made through Issuing and Paying Agent.

(2) Issuing and Paying Agent.--The issuing and Paying Agent shall,--

(a) enter into an agreement in writing with the issuer to act as Issuing and Paying Agent for the issue of the Commercial Paper;

(b) ensure that the issuer has the minimum credit rating as specified in regulation 3 above;

(c) ensure that the quantum of amount proposed to be raised through issuance of the Commercial Paper is within the limit as prescribed in regulation 5 above;

(d) ensure that the issuer has met all the requirements as prescribed in these Regulations before the issuance of Commercial Paper;

(e) verify all the documents submitted by the issuer i.e. copy of Board's resolution etc. and have in custody certified copies of the original document and issue a certificate that documents are in order;

(f) credit, on the issue date, the Commercial Paper to investors against proof of payment and at maturity having received funds from the issuer, it will effect repayment on receipt of the Commercial Paper back from the investors;

(g) make it clear to the initial subscribers in the investor agreement offering document that investors investment is subject to credit and other risks inherent in such instruments and payment will be made to them only if the issuer has made the funds available to Issuing and Paying Agent;

(h) inform the initial subscribers that in case of any default by the issuer, it will not, be in a position to seek recovery from the issuer or initiate any action against the issuer either on its own or on behalf of the investors;

(i) in case of any default by the issuer, be responsible for the immediate notification of such default to the holders of the Commercial Paper and the Commission but not later than three (3) working days of occurrence of such default;

Explanation.--For the purpose of these Regulations the term "default" shall include partial payment of redemption amount.

(j) in case of partial payment by the issuer, distribute the received funds, among all the holders of the Commercial Paper, on pro-rata basis and while doing so it shall take all necessary measures to safeguard its position against any adverse consequences including incorporation of this provision in the agreement executed between the issuer and the Issuing and Paying Agent;

(k) submit a report on the issue to the Commission within fifteen days from the last date for closing of the subscription of the Commercial Paper and the report shall contain all the material facts and figures relating to the issue including those as required under these Regulations to be reported to the Commission; and

(l) obtain from the concerned depository company list of Commercial Paper holders on monthly basis.

(3) Credit Rating Company.--The Credit Rating Company which conducts credit rating of the issuer shall, at the time of rating, clearly indicate',--

(a) the circumstances where the rating shall be due for review; and

(b) circumstances of issue of subsequent tranche(s), fresh issue of securities by the issuer and any other activity undertaken by the issuer which may adversely affect the credit rating of the issuer.

CHAPTER IV

MISCELLANEOUS

13. Payment of Commercial Paper.--On maturity of Commercial Paper, the holder shall present the instrument evidencing deposit of the Commercial Paper in depository account for payment to the Issuing and Paying Agent who, having received funds from the issuer, shall effect repayment through crossed cheque or bank transfer.

14. Periodic Reports.--Issuing and Paying Agent shall submit a report to the Commission on the redemption of Commercial Paper within ten (10) working days of the date of its maturity and the report must be signed by any officer authorized by Issuing and Paying Agent to do so.

15. Transfer of Commercial Paper.--Commercial paper shall be transferable according to the clearing and settlement systems developed for transfer of securities in such form under the stock exchanges, Central Depository Company of Pakistan Limited and National Clearing Company of Pakistan Limited's Regulations.

16. Roll Over and Early Redemption Options.--(1) Commercial Paper may be rolled over at maturity for a maximum of two terms of the same tenor subject to the following conditions, namely,--

(a) the circumstances where a Commercial Paper can be rolled over and full modus operandi for such roll over are provided in the investors' agreement or the offering document;

(b) the option of role over is agreed in writing between the issuer and the Issuing and Paying Agent;

(d) the issuer fulfills all the requirements of regulation 3 at the time of roll over.

(2) The issuer may redeem a Commercial Paper before maturity under a call option and an investor may ask the issuer for early redemption under a put option subject to the condition that such options are provided in the investors agreement or the offering document.

17. Penalty.--Any contravention of these Regulations shall be punishable with a fine which may extend to five hundred thousand rupees and, where the contravention is a continuing one, with further fine which may extend to ten thousand rupees for every day after the first during which such contravention continues.

18. Relaxation of the Regulations.--Where the Commission is satisfied that it is not practicable to comply with any requirement of these Regulations in a particular case or class of cases, the Commission may, for reason to be recorded in writing, relax such requirement subject to such conditions as it may deem fit.

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GILGIT ACT, I OF 2013

GILGIT-BALTISTAN COUNCIL FINANCE (ADAPTATION), ACT, 2013

An Act to adapt and enforce the Finance Act, 2013, as in force in Pakistan and the rules made thereunder, in Gilgit-Baltistan

[Gazette of Pakistan, Extraordinary, Part-I, 18th December, 2013]

No. C-1(2)/2013 GBC, DATED 17.12.2013.--The following Act, passed by the Gilgit-Baltistan Council on 6th December, 2013 and authenticated by the Chairman, Gilgit-Baltistan Council/Prime Minister of Pakistan, is hereby published for general information.