role of fi in pak

8/9/2019 Role of FI in Pak

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presentation on mobile softwares 1


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Group Members

Waqas Ishfaq MBC-09-06

Khurram Shahzad MBC-09-08Asif Iqbal MBC-09-37

Presented To:

Mr. Sadiq Shahid


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SAVINGS AND LOAN ASSOCIATIONS:-

Similar to commercial banks but maynot hold demand deposits, and obtain funds from

savings .and lend funds primarily to individuals

and businesses for real estate mortgage funds.

Credit unions:-

It mainly deals in transfer of

funds between the consumers. Membership is

generally based on some common bond such as

working for a given employer. Housing finance,car financing are its examples.


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LIFE INSURANCE COMPANY:

The largest type of financial intermediary deals with

saving attain by premium payments. Lend funds toindividuals, businesses and governments.

Pension fund:-

It is the fund that is collected for

employees retirement benefits. The employer alsocontribute amount for them.

MUTUAL FUND:

Pool funds of savers and makes them available to

businesses and government demanders. Obtainfund through sale of shares and uses proceeds to

acquire bonds and stock issued by variable

businesses.-


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SECP regulates the securities market and related

institutions like Mutual Funds, Central Depository

Company and Credit Rating Institutions. Secondly,

it administers Company Law. It also regulates

some non-banking financial institutions likeleasing companies and modarabas (funds

operating on basis of Islamic economic

principles).


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The Commission will be responsible forfollowing:

Regulating the issue of securities;

Regulating the business in stock exchanges and

any other securities markets;Registering and regulating workings of stock

brokers, sub-brokers, share transfer agents,

bankers to an issue, trustees of trust deeds,

registrars to an issue, underwriters, portfoliomanagers, investment advisers and such other

intermediaries who may be associated with

the securities markets in any manner;


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Proposing regulations for the registration and workings of collective investment

schemes, including unit trust schemes;

Promoting and regulating self-regulatory organizations in the securities industry and

related fields such as stock exchanges and associations of mutual funds, leasing

companies and other non bank financial institutions;

Prohibiting fraudulent and unfair trade practices relating to securities markets

Regulating the merger and takeover of companies .

All foreign firms interested in an issue or offering of securities to the public in Pakistanor to list such securities on a Stock Exchange in Pakistan also require an approval from

the SEC. .

Supervising and monitoring the activities of any central depository and Stock Exchange

clearing house.

Promoting investors education and training of intermediaries of securities markets.

Conducting investigations in respect of matters related to this Act and the Ordinance

and in particular for the purpose of investigating insider trading in securities andprosecuting offenders.

Encouraging the organized development of the capital market and the corporate sector

in Pakistan.

Considering and suggesting reforms of the law relating to companies and bodies

corporate, securities markets, including changes to the constitution, rules and

regulations of companies and bodies corporate, Stock Exchanges or clearing houses


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Pakistan Industrial Credit & InvestmentCorporation (PICIC)

Industrial Development Bank of

Pakistan(IDBP)

Agriculture Development Bank of

Pakistan(ADBP)

Investment Corporation of Pakistan(ICP)

Small Business Finance Corporation(SBFC)House Building Finance Corporation(HBFC)

National Investment Trust(NIT)


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Established in Oct-1957

Head Office in Karachi

Provides long & Medium term Finance to

private industrial sectorsManaged by Board of Directors(20 Members)

Lends money for 7-15 years

Interest Charge on rupee loan 8.5% to 12.5%

Interest Charge on Foreign Currency loan

10.5% to 11.5%.

Paid up capital Rs. 150 crores.

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Established in Aug-1961. Member of board of Director is 9.

Provides financial assistance by way of term loans for

establishing new industrial units.

Emphasize on development of small and mediumscale enterprises in the private sector.

Provide loan both in local and foreign currencies

Bank Lends for maximum period of 15 years against

the mortgage of industrial asset.

Interest Charge on rupee loan 3% to 4%

above Bank rate.

Interest Charge on Foreign Currency loan 11%.

Paid up capital Rs. 50 crores.

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Established in Feb-1961Now it is known as Zarai Tarakiati Bank

Member of board of Director is 12

Provides Short term loans which are

repayable within 18 months

Medium term loans to be repaid between 18

months to 5 years

Long term loans are repaid in more than 5years

Interest Charge12%.

Authorized capital Rs. 40 crores.

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Established in Feb-1966Purpose is to broaden the base investment &

develop capital market

Member of board of Director is 11

Provides financial assistance to many public

limited Companies by underwriting the public

issue of their shares and debentures.

In 2002 ICP was wound up & its closed upmutual funds , were privatized.

Authorized capital Rs. 20 crores.

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Established in 1972.Major objective is to finance cottage and

small scale industries.

Member of board of Director is 7.

Period of loans ranges between three and five

years. It may be extended up to eight years.

Now it is converted into SME Bank.

Authorized capital Rs. 100 million.Paid up capital Rs. 70 million.

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role of fi in pak

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