SecurityClearance/NOC InpursuanceofNotification 1.BoardofInvestment(BOI)inconsultationwithSecuritiesandExchangeCommissionofPakistan (SECP)hasdevisedtheundermentionedprocedureforprocessingthecasesofforeignandlocal companiesdealtwithbytheSECPwhicharerequiredtoobtainSecurityClearanceforwhichthey arereferredbySECPtoBOI: i. DefinitionofForeignCompaniesrequiringsecurityclearance:Forthispurposeforeign companiesrequiringsecurityclearance,aredefinedasallentitiescoveredunderSection 450oftheCompaniesOrdinance1984 ii.

i. Situation/changes of Foreign Companies requiring security clearance: All Foreign Companiesarerequiredtoobtainsecurityclearanceuponregistrationorincaseofany changewhichoccursinparticularsofPrincipalOfficer(s),Director(s),ChiefExecutive(s) or Authorized Person(s) having authority to accept services on behalf of a foreign companypriortoaffectingthechange. iii. DefinitionofLocalCompaniesandSituation/changesrequiringsecurityclearance:for this purpose Local Companies are defined under Section 2 (7) of the Companies Ordinance 1984. All Local Companies are required to obtain security clearance in the eventofthefollowing: a. UponregistrationintheeventthatthereareForeignDirector(s),ForeignChief ExecutiveoraForeignentityisasubscribertotheequityoftheproposedLocal Company. b. c. d. Upon appointment of a Foreign Director(s) or Foreign Chief Executive in an existingLocalCompany. Upon induction of a foreign national or foreign entity as a share holder in a LocalCompany. Uponchangeinthestatusofanyoftheaboveoccurringsubsequentlywhere changeinstatusinvolvestheinductionofanotherforeignpersonorentityas thecasemaybe.

2.

TheproceduretobefollowedbySECP/BOIforprocessingthecasesregardingmandatorysecurity clearanceisgivenbelow: i. ii. iii. iv. v. SECP will examine the documents received from the companies and send four legible setsofdocumentsinorderasperchecklistplacedatAnnexA. On receipt, Board of Investment (BOI) will circulate these documents to the Agencies concerned. Incompletedocumentswillnotbeentertainedforfurtherprocessing. Security clearance will be obtained, in all such cases, within 4 weeks subject to availabilityofallinformationrequiredtobeobtainedbytheagenciesinthisregard. On receipt of the security clearance, Board of Investment (BOI), Islamabad will immediatelyissueNOCinfavorofthecompanyorotherwisetotheSECP.

 Already registered foreign companies Change of 1) Principal Officer (in case, he is foreigner) and Change in particulars of directors/ Chief Executive or authorized 2) persontoacceptservicesonbehalfofaforeigncompany. 3) Copy of Charter/ Stature/Memorandum (AnnexI) Copy of valid Passport of Principal Officer/ Directors/ChiefExecutive(AnnexII) Copies of Form40/ Form41/ Form42 (AnnexIII) 4) Anyotherrelevantdocuments(AnnexIV).

(ii) Alreadyregisteredlocalcompanies Appointmentof 1) foreigndirectors/ChiefExecutive;and 2) 3)

Memorandum and Articles of Association (AnnexI); CopyofForms21&29(AnnexII); Copiesofbiodataofallforeigners(Annex III); 4) Copies of valid passports of all foreigners (AnnexIV);and 5) Anyotherrelevantdocuments(AnnexV). CopyofFormA/Form3(AnnexI); Copy of Form 29 (in case of new director) (AnnexII); Copiesofbiodataofallforeigners(Annex III); Copies of valid passports of all foreigners (AnnexIV); Relevantdocumentsoftheforeignentities (in case of foreign entity is made shareholdersofalocalregisteredcompany) (AnnexV);and 6) Anyotherrelevantdocuments(AnnexVI).

(iii)Already registered local companies Foreign 1) equity/foreignloans.(Inductionsofforeignnational/ 2) foreignentitiesasshareholders) 3) Note: In case, if foreign company is subscriber of any local company or shares are transferred or 4) allotted to foreign entity than all particulars of thatforeigncompanyanditsdirectorsaretobe 5) forwarded.