You are on page 1of 69

DEFINITIONSOFDIFFERENTTERMSUSEDINVARIOUSLAWS,RULES,REGULATIONS ANDGUIDELINESGOVERNINGFINANCIALSECTORFALLINGUNDERTHE REGULATORYJURISDICTIONOFTHESECP. AbridgedProspectus "Abridged Prospectus" means the condensed form of the full Prospectus.

[Guidelines for the Issue of Term Finance Certificates (TFCs) to the General Public] AcceptreTakaful Accept reTakaful includes risks from Takaful pools or reTakaful pools managed by other Takaful or reTakaful operators for inclusion in Takaful pools managedbytheTakafuloperator; Accountingperiod [TakafulRules2005] "Accounting period" means the period ending on an accounting date and commencingfromtheestablishmentofthepensionfundorfromtheendofthe lastaccountingperiod,asthecasemaybe; Acquirer [VoluntaryPensionSystemRules,2006] "Acquirer" means any person who, directly or indirectly, acquires or has proceeded to acquire voting shares in the target company, or acquires or has proceededtoacquirecontrolofthetargetcompany,eitherbyhimselforthrough anypersonactinginconcert; [ListedCompanies(SubstantialAcquisitionofVotingSharesandTakeovers) Ordinance,2002] Actuary "Actuary" means a person possessing such actuarial qualifications as may be prescribed; [InsuranceOrdinance,2000] Adjudicating authority "Adjudicating authority" means a Commissioner or an officer exercising the powersoftheCommissioninconsequenceofdelegationundersection10ofthe ActoranyotherlawbeingadministeredbytheCommission; [Securities & Exchange Commission of Pakistan (Appellate Bench Procedure) Rules,2003]

Administrator

"Administrator" means a personappointed by theCommission to manage the affairs of a closedend fund or venture capital fund upon cancellation of such licensegrantedtotheNonBankingandFinanceCompaniesbytheCommission tooperateasinvestmentadviserortomanagetheventurecapitalfund,subject tosuchtermsandconditionsasmaybedeemedappropriatebytheCommission; [NonBankingandFinanceCompaniesRules,2003]

Advanceelectronic signature

"Advanced electronic signature" has the same meaning as given in section 2(1)(e)oftheElectronicTransactionsOrdinance,2002; [InternetTradingGuidelines,2005]

Advisor

"Advisor" means a Scheduled Bank, Registered Corporate Broker or an Investment Finance Company appointed by the issuer to provide advice on the structuring,placementandissueofthecommercialpaper. [GuidelinesforissueofCommercialPaper]

Advocate

"Advocate" meansanadvocateenteredinanyrollundertheprovisionsofthe LegalPractitionersandBarCouncilsAct,1973(XXXVof1973). [Companies(AppointmentofLegalAdvisers)Act,1974]

Agent

(i)"Agent"meansapersonappointedbyamembertoactonhisbehalfforthe purposesrecognizedbyastockexchange; [SecuritiesandExchangeOrdinance,1969] (ii)"Agent"meansapersonappointedbyamemberofaStockExchangetoact onhisbehalfforthepurposerecognizedbyastockexchangeandincludesasub brokerorheadofabranchoffice;[LeasingCompanies (EstablishmentandRegulation)Rules,2000]

Alternatenominee "Alternate nominee director" means an individual nominated by a single Director member to act as nominee director in case of nonavailability of nominee director;[SingleMemberCompaniesRules,2003] Annuity Appellant "Annuity"meansaseriesofpaymentsofsetfrequency; [FederalPublicService Rules,2006] "Appellant" means a person who prefers an appeal before the Appellate Bench; [Securities and Exchange Commission of Pakistan (Appellate Bench Procedure)Rules,2003]

Appellatebench

"AppellateBench" eans an Appellate Bench constituted by the Commission m undersection33; [SecuritiesandExchangeCommissionofPakistan(AppellateBenchProcedure) Rules,2003]

Application

"Application"includesanapplication,petitionorappeal; [Companies(GeneralProvisionsandForms)Rules,1985]

Appointedactuary "Appointed actuary" means the actuary required to be appointed by a life insurer pursuant to the provisions of section 26 of this Ordinance; [Insurance Ordinance,2000] Approvedauditors "Approved auditor" means an auditor approved by the Commission for the purpose of performingthe functions assigned to auditors under this Ordinance; [InsuranceOrdinance,2000] Approvedsecurities Approved securities means Government securities and any other security charged on the revenues of the Federal Government or of a Provincial Government, or guaranteed fully as regards principal and profit or return (however called or designated) by the Federal Government or a Provincial Government; and any debenture or other security for money issued under the authorityofanyActoftheFederalLegislatureoranyProvincialLegislaturebyor onbehalfofthetrusteesoftheportofKarachi;anysecurityissuedunderthe authorityofanyActofParliamentorofaProvincialAssembly;andanysecurity specified as an approved security for the purpose of this Ordinance by the FederalGovernmentbynotificationintheofficialGazette; [InsuranceOrdinance,2000] Approvedsecurities"Approved securities" means shares of listed companies and government securities deposited as margin and approved by the Stock Exchange for the purposeofmargintradingandfinancing; [MarginTradingRules,2004] Approvedsecurities"Approved Securities" meansthesecuritiesapprovedbytheBoardwiththe priorapprovaloftheCommissionforthepurposeoftheseRegulations. [ContinuousFundingSystemRegulations,2005] Articles "Articles"meansthearticlesofassociationofacompanyasoriginallyframedor asalteredinaccordancewiththeprovisionsofanypreviousCompaniesAct,orof this Ordinance, including, so far as they apply to the company, the regulations

containedinTableAintheFirstSchedule; [CompaniesOrdinance,1984]

Assetmanagement "Asset management company" means a company which offers investment Company schemesundertrustdeedsandissuesredeemablesecurities; [SecuritiesandExchangeOrdinance,1969] Assetmanagement "Asset management company" means a company which has been licensed company by the Commission under rule 5 of the NonBanking Finance Companies Rules, 2003, to offer investment schemes under trust deeds and to issue redeemable securities; [VoluntaryPensionSystemRules2005] AssetManagement Company Asset Management Company means an NonBanking and Finance Companies licensedbytheCommissiontoprovideassetmanagementservices; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008] Assetmanagement services "Assetmanagementservices"meantheservicesprovidedformanagementof openended schemes and include offering of investment schemes under trust deedsandissueofredeemablesecurities; [NonBankingandFinanceCompaniesRules,2003] Assets "Assets"meanpropertiesofallkindsincludingshares,securities,deposits,right andbonusshares,cash,bankbalances,profits,dividends,fees,commissions,all receivables, claims, contracts, licenses, privileges, accrued or accruing or contingent, the beneficial ownership of which vests in the shareholders of an investmentcompanyorcertificateholdersofacloseendschemeorunitholders ofopenendedschemes; [NonBankingandFinanceCompaniesRules,2003] Associate "Associate"meansanypartner,employee,officerordirectorofamember; [SecuritiesandExchangeOrdinance,1969] Associated companies "Associatedcompanies"includeassociatedissuer,associatedclient,companies and associated, undertakings as defined in subsection (2) of section 2 of the Ordinance; [NonBankingandFinanceCompaniesRules,2003]

Associatedcompanies "Associated companies and associated undertakings" mean any twoor more andassociated undertakings Companies or undertakings, or a company and an undertaking, interconnected witheachotherinthefollowingmanner,namely: i. ifapersonwhoistheownerorapartnerordirectorofacompany or undertaking, or who, directly or indirectly, holds or controls sharescarryingnotlessthantwentypercentofthevotingpowerin such company or undertaking, is also the owner or partner or director of another company or undertaking, or directly or indirectly,holdsorcontrolssharescarryingnotlessthantwentyper centofthevotingpowerinthatcompanyorundertaking;orifthe companies or undertakings are under common management or controloroneisthesubsidiaryofanother;or ii. if the undertaking is a modaraba managed by the company; and a personwhoistheowneroforapartnerordirectorinacompanyor undertaking or, who so holds or controls shares carrying not less thantenpercentof iii. thevotingpowerinacompanyorundertaking,shallbedeemedto be an "associated person" of every such other person and of the person who is the owner of or a partner or director in such other companyorundertaking,orwhosoholdsorcontrolssuchsharesin such company undertaking, or undertaking: Provided that shares shallbedeemedtobeowned,heldorcontrolledbyapersonifthey are owned, held or controlled by that person or by the spouse or minorchildrenoftheperson: a) Provided further that directorship of a .person or persons by virtue of nomination by the Federal Government or a Provincial Governmentorafinancialinstitutiondirectlyor ownedorcontrolledbysuchGovernment;or b) shares owned by the National Investment Trust or the InvestmentCorporationofPakistanorafinancialinstitutiondirectly or indirectly owned or controlled by the Federal Government or a Provincial Government; or shares registered in the name of a indirectly

central depository', where such shares are beneficially owned by the central depository; shall not be taken into account for determiningthestatusofacompany,undertakingorpersonasan associatedcompany,associatedundertakingorassociatedperson; [CompaniesOrdinance,1984] Associatemember ''Associatemember"means "a NonMemberBanking company, a Non Banking FinancialInstitution,InvestmentCompany,UniTrustScheme,PakistanInsurance Corporation, National Insurance Corporation and State Life Insurance Corporation,admittedasaMemberoftheClearingHouseoftheExchangeonly forthepurposeofexecutingtheirdeliveriesandsettlementobligationsinrelation totheirCOTTransactionsconducted.ThroughaMemberOftheExchange". [RegulationsGoverningAssociateMembershipofKarachiStockExchange Clearing House] Associatedperson "Associated person" means any partner, employee, officer or director of a broker; [RegulationsforProprietaryTrading2004] Atbest "Atbest"ordermeansanordertobuyorsellasecurityassoonaspossibleatthe bestavailablemarketprice; [RegulationsforProprietaryTrading,2004] Audit "Audit"meanstheSystemAuditofbrokersconductedaspertheseRegulations. [RegulationsgoverningSystemAuditofBrokers] AuditCommittee Auditcommittee"meanstheAuditCommitteeoftheBoard. [RegulationsGoverningsystemauditofbrokers] Auditor "Auditor" means a person qualified under the provisions of section 254 of the Companies Ordinance, 1984 (XI,VII of 1984), to act as an auditor of companies; [InsuranceOrdinance,2000] Authority "Authority" means the Corporate Law Authority constituted under the CompaniesOrdinance,1984(XLVIIof1984); [SecuritiesandExchangeCommissionofPakistanAct,1997] Authorized "Authorizedrepresentative"means, i. inrelationtoacompany,apersonwhoiseitherthechiefexecutive oradirectororsecretaryofthecompanyoranadvocateentitledto appear before High Court or a member of Institute of Chartered

Accountants of Pakistan or Institute of Cost and Management Accountantsandisdulyauthorizedbythecompanytoappear,plead andactonitsbehalfbeforetheAppellateBench; ii. in relation to the adjudicating authority or any other officer of the Commission, an officer not below the rank of a Deputy Director of theconcerneddivisionoranyofficerauthorizedbytheadjudicating authoritytoappear,pleadandactbeforetheAppellateBench;and iii. inrelationtoanyotherappellantorrespondent,apersonwhoisan advocate of High Court, or a member of Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants and is duly authorized by the appellant or respondent toappear,pleadandactonhisbehalfbeforetheAppellateBench; or iv. inrelationtoadirectorofthecompany,inadditiontosubclause(iii) adirectorrepresentingfellowappellantsorrespondentsandisduly authorizedbytheappellantorrespondenttoappear,pleadandact onhisbehalfbeforetheAppellateBench; [Securities and Exchange Commission of Pakistan(Appellate Bench Procedure)Rules,2003] Authorizedperson "Authorizedperson"means,inthecaseofacompany,adirector,includingthe chiefexecutive,(bywhatevernamecalled),orinthecaseofinsurersbeingbodies corporateincorporatedoutsidePakistanandcontinuingbusinessassuchafterthe commencement of this Ordinance, the closest comparable equivalent thereto, underthelawsoftheplaceofincorporationofsuchforeignbodycorporate; [InsuranceOrdinance2000] Balloter "Balloter" means a person who provides services to an issuer for selecting the requirednumberofapplicantsofpublicissuethroughacomputerdraw; [SecuritiesandExchangeOrdinance,1969] Bankchallan "Bank challan" means an original receipt issued by one of the several bank branches which are for the time being authorized by the Commission for collectionofreceiptsorotherservicestotheaccountoftheCommission; [Securities and Exchange Commission of Pakistan (Appellate Bench Procedure)Rules,2003]

Blanksale

"BlankSale"means"asalebyapartythatdoesnotownsharesorthesaledoes notconstituteasalewithpreexistinginterestorisasalebyapartythathasnot entered into a contractual borrowing arrangement to meet delivery requirements". [RegulationsforShortSellingunderReadyMarket,2002]

Bankersacceptance "Bankers acceptance" means a draft drawn on a commercial bank by an individual or firm ordering the drawee bank to pay to the order of a certain personaspecifiedsumofmoney,eitherondemandoratsomefuturespecified date,andacceptedbythedrawee; [NonBankingandFinanceCompaniesRules,2003] BankersAcceptance BankersAcceptancemeansaninstrumentdrawnonascheduledbankbya personorderingandacceptedbythedraweebanktopaytotheorderofaperson aspecifiedsumofmoney,eitherondemandoratafuturespecifieddate; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008] Bankerscommittee "Bankers Committee" means the Committee constituted by the State Bank of Pakistan comprising Heads of banks and financial institutions to implement the recommendationsoftheStateBankofPakistanCoordinationCommittee relating totherevivalofsickunits; [Companies(RehabilitationofSickIndustrialUnits)Rules,1999] Bankingcompany "Banking company" has the meaning assigned to the term in clause (a) of section 2 of the Banking Companies (Recovery of Loans, Advances, Credits and Finances)Act,1997(XVof1997); [InsuranceOrdinance,2000] Bankingcompany "Banking company" means a banking company as defined in the Banking Tribunalsordinance,1984(LVIllof1984); [Companies(InvitationandAcceptanceofDeposits)Rules,1987]

Baserate

"Base rate" means theeffective annual rate implied by the most recent repurchase rate that is published from time to time in a circular issued by the Securities Department of the State Bank of Pakistan for six months Pakistan TreasuryBills,or,ifsuchrateisnotavailable,themostrecentrepurchaseratefor sixmonthsShortTermFederalBonds,or,ifneitherofsuchratesisavailable,the mostrecentrepurchaserateforanyothershorttermpaperissuedbytheFederal Government of an approximately similar tenor, whether in addition to or in substitutionforanyoftheforegoing; [InsuranceOrdinance,2000]

Bidprice

Bid price means the price for which a Market Maker is willing to pay for the purchaseofaCompany'ssecurity. [TheRegulationsGoverningOverTheCounter(OTC)Market]

Board

"Board" means the Securities and Exchange Policy Board established under section12; [SecuritiesandExchangeCommissionofPakistanAct,1997]

Board

"Board"meanstheBoardofDirectorsoftheKarachiStockExchange(Guarantee) LimitedasdefinedintheArticlesofAssociationoftheExchange. [KarachiAutomatedTradingSystemRegulations]

Bodycorporate

"Body corporate" or "corporation" includes a company incorporated outside Pakistan,butdoesnotinclude i. a corporation sole; or a cooperative society registered under any lawrelatingtotheregistrationofcooperativesocieties;or ii. any other body corporate, not being a company as defined in this Ordinance, which the Federal Government may notification in the officialGazette,specifyinthisbehalf, [CompaniesOrdinance,1984]

Bookandpaper

"Book and paper", "book or paper" or "books of accounts" include accounts, deeds,vouchers,registers,writingsanddocuments; [CompaniesOrdinance,1984]

Bookentrysecurity

"Bookentry security" in relation to a central depository, means a security whichistransferablebybookentryinthecentraldepositoryregisterpursuantto adeclarationmadebythecentraldepositoryundersubsectioniiofsection4and whichis: i. inthecaseofasecuritytransferablebyregistration,registered

inthenameofthecentraldepositoryorissuedtothecentral depositorypursuanttosection14;or ii. in the case of a security transferable by delivery or endorsement, deposited with or transferred by endorsement to the central depository [CentralDepositoriesAct,1997] Borrower "Borrower"hasthemeaningassignedtotheterminclause(c)ofsection2ofthe BankingCompaniesRecoveryofLoans,Advances,CreditsandFinances)Act,1997 (XVof1997); [InsuranceOrdinance,2000] Borrower BorrowerincludesapersononwhomanNonBankingandFinanceCompanies hastakenanExposureduringthecourseofitsbusiness; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008] Branchoffice "Branch office" means an office, branch or shop opened and maintained by a member within or outside the premises of a stock exchange for conducting the businessandtradingofsharesandsecurities; [StockExchangeMembers(InspectionofBooksandRecord)Rules,2001] Broker "Broker"meansanypersonengagedinthebusinessofeffectingtransactionsin securitiesfortheaccountofothers; [SecuritiesandExchange Ordinance,1969] Broker "Broker"meansanypersonengagedinthebusinessofeffectingtransactionsin securities for the account of others and is registered with the Commission; [MarginTradingRules,2004] Broker "Broker" means any member of the Exchange engaged in the business of executing transactions in securities for the account of others and is registered withtheCommissionforthispurpose. Broker [ContinuousFundingSystemRegulations2005] "Broker" meansany brokerregisteredwiththeCommissionunderBrokersand Agents Registration Rules, 2001 or under the Commodity exchange and Future ContractsRules,2004; [InternetTradingGuidelines,2005] Capitaladequacy "Capitaladequacy"means"TradingLimitsassignedtothemembersequivalent to25timesoftheirrespectivecertifiedNetCapitalbalance"; [MarginTradingRegulations]

Centraldepository

"Central depository" means a central depository as defined in clause (cc) of section 2 of the Securities and Exchange Ordinance, 1969 (XVII of 1969), and registeredwiththeAuthorityundersection32AofthatOrdinance;

Centraldepository

[CentralDepositoryAct,1997] "Central depository" means a company formed to establish and operate a system for the central handling of securities, whether or not listed on a stock exchange,wherebysuchsecuritiesaredepositedwithandheldincustodyby,or registered in the name of, the company as a nominee for the depositors and dealingsinrespectofsuchsecuritiesareeffectedbymeansofentriesinsecurities accountswithoutthephysicaldeliveryofscraps." [SecuritiesandExchangeOrdinance1969]

Centraldepository companies regulations

"Central Depository Companies Regulations" means the regulations of a central depository company registered with the Commission under the Central DepositoryCompanies(EstablishmentandRegulation)Rules,1996; [StockExchangeMembers(InspectionofBooksandRecord)Rules,2001]

Centraldepository company

"Central depository company" means a company formed to establish and operateasystemforthecentralhandlingofsecurities,whetherlistedornotona stockexchange,wherebysuchsecuritiesaredepositedwithandheldincustody by, or registered in the name of, the company as a nominee for the depositors and dealings in respect of such securities are effected by means of entries in securities accounts without the physical delivery of scrips and which has been registered under section 32A of the Securities and Exchange Ordinance, 1969 (XVIIof1969); [VoluntaryPensionSystemRules,2006] 7

Centraldepository register

"Central depository register" means a computerized electronic register maintainedbyacentraldepositoryinrespectofbookentrysecurities; [CentralDepositoryAct,1997]

Centraldepository system

"Central depository system" means central depository system established undersection4; [CentralDepositoryAct,1997]

CentralShariah Board

Central Shariah Board means the Central Shariah Board constituted by the SecuritiesandExchangeCommissionofPakistanunderrule33; [TakafulRules2005]

Certificate

"Certificate" means a certificate of definite denomination issued by the Modaraba to the contributory acknowledging the receipt of money contributed by him under these guidelines on the basis of arrangement described herein [Guidelinesforissueofcertificatesofmusarakasformodarabas]

Certificateholders

"Certificateholders"meansholdersofModarabaCertificates [ModarabacompaniesandModarabaRules,1981]

Certificateof investment

"Certificate of investment" means a certificate of investment issued by a leasingcompanyundertheserules; [LeasingCompanies(EstablishmentandRegulation)Rules,2000]

Certificateof

"Certificate of Investment or Deposit" means a certificate of investment or

investmentordepositcertificate of deposit issued by NonBanking and Finance Companies, duly licensedbytheCommissiontoundertakeleasingorinvestmentfinanceservices or housing finance services ices and the permission to issue certificates of investment or deposit has been obtained by such NonBanking and Finance CompaniesfromtheCommissionintermsofsubrule(2)ofrule12; [NonBankingandFinanceCompaniesRules,2003] CertificateofDeposit CertificateofDepositmeansacertificateofinvestmentoracertificateof depositissuedforraisingfundsforaspecifiedtimebyaLeasingCompany, InvestmentFinanceCompanyoraHousingFinanceCompany; (NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008) Certified "Certified" inrelationtoanycopyortranslationofadocumentrequiredtobe furnishedbyoronbehalfofaninsurermeanscertifiedbyanauthorizedperson on behalf of such insurer to bea true copy ora correct translation, as the case maybe;[InsuranceOrdinance,2000] CFS "CFS"meansContinuousFundingSystem. [ContinuousFundingSystemRegulations,2005] Chairman "Chairman"meanstheChairmanoftheCommission; [SecuritiesandExchangeCommissionofPakistanAct,1997] Charge "Charge" includes a mortgage, an interest created in consequence of an agreement for redeemable capital, term finance, participation term certificate, musharika,leaseorhire,hirepurchaseoranyothersimilarinterestintheassets ofacompany; [Companies(GeneralProvisionsandForms)Rules,1985]

CharteredAccountant"CharteredAccountant"meansapersonwhoisacharteredaccountantwithin themeaningoftheCharteredAccountantsOrdinance,1961(Xof1961); [SecuritiesandExchangeRules,1971] Chiefexecutive "Chiefexecutive",inrelationtoacompanymeansanindividualwho,subjectto the control and directions of the directors, is entrusted with the whole, or substantially the whole, of the powers of management of the affairs of the company,andincludesadirectororanyotherpersonoccupyingthepositionofa chief executive, by whatever name called, and whether under a contract of serviceorotherwise; [CompaniesOrdinance,1984] Civilservant "Civilservant"meansacivilservantasdefinedinsection2oftheCivilServants Act,1973(LXXIof1973); [SecuritiesandExchangeCommissionofPakistanAct,1997] Classofbusiness "Class of business" means a classification of insurance business having similar characteristics, into which life insurance or nonlife insurance may be divided; [InsuranceOrdinance,2000] Clearingand settlementfund Clearingday "Clearing and settlement fund " meansthefundcreatedpursuanttorule12; [ClearingHouses(RegistrationandRegulation)Rules,2005] "Clearing Day" means the clearing day fixed by the Exchange from time to time; [Regulations for Futures Trading in Provisionally Listed Companies (FTPLC), 2002] Clearingfund contribution "Clearingfundcontribution"meansthecontributionrequiredtobemadebya clearingmembertotheclearingandsettlementfund; [ClearingHouses(RegistrationandRegulation)Rules,2005] Clearinghouse "Clearing house" means a clearing house by whatever name or designation established or arranged to be established by a Stock Exchange for the registration of dealing in securities or settlement of trading in futures contracts;[SecuritiesandExchangeCommissionofPakistanAct,1997] Clearinghouse "Clearinghouse"meansaclearinghouseasdefinedinclause(f)ofsection2 oftheSecuritiesandExchangeCommissionofPakistanAct; [ClearingHouses(RegistrationandRegulation)Rules,2005]

Clearinghouse

"Clearinghouse"means"theClearingHouseoftheKarachiStockExchange operatingundertheClearingHouseProcedureManual. [Regulations governing Associate membership of Karachi Stock Exchange ClearingHouse]

Clearingmember

"Clearingmember"meansapersonwhoisadmittedasaclearingmemberfor clearing and settlement on his own behalf as well as on behalf of other brokers,undertheregulations; [ClearingHousesRegistrationandRegulation)Rules,2005]

Client

"Client" means a person who executes margin agreement to borrow money from a broker to buy securities as specified by the Stock Exchange for the purposeofmargintrading;

Closerelative

[MarginTradingRules,2004] "Closerelative"includesspouseandminorchildren; [NonBankingandFinanceCompaniesRules,2003]

Closedendscheme

"Closedend scheme" means a scheme constituted by way of trust to raise funds through issue of certificates to the public for investing in securities including money market instruments for a definite or indefinite period but which does not continuously offer certificates entitling the holder of such certificates, to receive, on demand, his proportionate share of the net assets oftheclosedendscheme; [NonBankingandFinanceCompaniesRules,2003]

Closedendfund

"Closedend fund" means an investment company or a closedend scheme; [NonBankingandFinanceCompaniesRules,2003]

Collectiveinvestment "Collective investment scheme" includes a closedend fund and an scheme openendedscheme; [NonBankingandFinanceCompaniesRules,2003] Commercialpaper "Commercialpaper"meansanunsecuredpromissorynotewithamaturityof notlessthan30daysandnotmorethanoneyear [GuidelinesforIssueofCommercialPaper] Commission "Commission" means the Securities and Exchange Commission of Pakistan established under section 3 of the Securities and Exchange Commission of PakistanAct,1997(XLIIof1997); [ListedCompanies(SubstantialAcquisitionofVotingSharesandTakeovers) Ordinance,2002

Commissioner

"Commissioner"meansaCommissioneroftheCommissionandshallinclude theChairmanthereof, [SecuritiesandExchangeCommissionofPakistanAct,1997]

Committee Commodity exchange

"Committee"meansacommitteeoftheBoardconstitutedundersection157 [SecuritiesandExchangeCommissionofPakistanAct,1997] "Commodity Exchange" has thesame meaning as given in section 2(1)(cc) oftheSecurities&ExchangeOrdinance,1969; [InternetTradingGuidelines,2005]

Company

"Company" meansa company formedandregisteredunder this Ordinance oranexistingcompany; [CompaniesOrdinance,1984]

Company

"Company"meansacompanyformedandregisteredundertheCompanies Act,1913(VIIof1913),butdoesnotincludeacompanythepaidupcapital ofwhichislessthanfivelakhrupeesoracompanylimitedbyguaranteeor an association registered under section 26 of that Act;

[Companies(AppointmentofLegalAdvisers)Act,1974] Company "Company" means a life insurance company or an asset management companyregisteredasaPensionFundManager; [VoluntaryPensionSystemRules2005] Company "Company" means "a company applying for listing under these regulations". [KarachiStockExchangeListingRegulations] Companylimitedby "Company limited by guarantee" means a company having the liability of guarantee its members limited by the memorandum to such amount as the members may respectively thereby undertake to contribute to the assets of the companyintheeventofitswindingup: [CompaniesOrdinance,1984] Companylimitedby "Company limited by shares" means a company having the liability of its shares memberslimitedbythememorandumtotheamount,ifany,unpaidonthe sharesrespectivelyheldbythem; [CompaniesOrdinance,1984] Company "Company Registration Office" means an office established by the

RegistrationOffice Commissionundersubsection(1)ofsection466;

[Company(RegistrationOffices)Regulations,2003] Compensation committee "Compensation Committee" means a Compensation Committee

constitutedunderrule4; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Connectedperson

"Connectedperson",inrelationtoacompanyregisteredasaPensionFund Managermeans; i any person or company beneficially owning, directly or indirectly, ten

percentormoreofordinarysharecapitalofthatcompany,orbeingableto exercise, directly or indirectly, ten per cent or more of the total voting powerinthatcompany; ii. any person or company controlled by a person who or which meets

oneorboth,ofthedescriptionsgiveninsubclause(i); iii. anymemberofthegroupofwhichthatcompanyformspart;or iv. any director, officer and employee of that company or of any of their connected persons as specified in subclauses (i), (ii) and (iii) or any body providing service or exercising power of that company; Explanation. The words director, officer and employee shall include their spouse, lineal ascendantsanddescendants,brothersandsisters; [VoluntaryPensionSystemRules,2006]

Connectedperson

"Connected person" in relation to a NonBanking and Finance Companies , means, i. anypersonorcompanybeneficiallyowning,directlyorindirectly,ten per cent or more of ordinary share capital of the NonBanking and Finance Companies or the closedend fund being managed by it, or being able to exercise,directly or indirectly, ten per cent or more of thetotalvotingpowerinthatNonBankingandFinanceCompaniesor theclosedendfundbeingmanagedbyit; ii. any person or company controlled by a person who or which meets oneorboth,ofthedescriptionsgiveninsubclause(a); iii. iv. anymemberofthegroupofwhichthatcompanyformspart;or anydirectororofficerofthatNonBankingandFinanceCompanies, or the closedend fund being managed by it, or of any of their connectedpersonsasspecifiedinsubclauses(a),(b)and [NonBankingandFinanceCompaniesRules,2003]

Connectedperson

"Connectedperson"inrelationtoacompanymeans, i. anypersonorcompanybeneficiallyowning,directlyorindirectly,ten per cent or more of the share capital of that company or able to exercise directly, or indirectly, ten per cent or more of the voting rightsinthat ii. anypersonorcompanycontrolledbyapersonwhomeetsoneorbothof thedescriptionsgiveninsubclause(i);or iii. iv. anymemberofthegroupofwhichthatcompanyformspart;or any director or officer of that company or of any of its connected personsspecifiedinsubclauses(i),(ii),or(iii); [Companies(AssetBackedSecuritization)Rules,1999]

Connectedperson

"Connectedperson"meansanypersonwho a. isadirector,asdefinedinclause(13)ofsubsection(1)ofsection2ofthe

CompaniesOrdinance,1984;or b.occupiesthepositionasanofficeroranemployeeofthecompanyorholds a position involving a professional or businessrelationship between himself and the company and who may reasonably be expected to have an access to

unpublishedpricesensitiveinformationinrelationtothatcompany; [ListedCompanies(ProhibitionofInsidersTrading)Guidelines] Constitutive Documents ConstitutiveDocumentsmeansthetrustdeed,OfferingDocumentandother principaldocumentsgoverningtheformationofaClosedEndSchemeoranOpen EndScheme,includingallrelatedmaterialagreements; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008] Constitutive document "Constitutive document" means the principal document governing the formationofthepensionfund,andincludesthetrustdeedofapensionfundand allmaterialagreements; [VoluntaryPensionSystemRules,2006] Constitutive documents "Constitutive documents" mean the principal documents governing the formation of a closedend scheme or an openended scheme and all related materialagreements; [NonBankingandFinanceCompaniesRules,2003] Constitutive documents "Constitutive documents" means the principal documents governing the formationofaSpecialPurposeVehicle; [Companies(AssetBackedSecuritization)Rules,1999] Continuousdisability "Continuous disability contract" means a contract under which a benefit is contract payableintheeventof: a. thedeath,byacausespecifiedinthecontract,ofthepersonwhoselifeis.

insured(the"insured");or b. c. injuryto,ordisabilityof,theinsuredasaresultofaccidentorsickness;or theinsuredbeingfoundtohaveaspecifiedmedicalconditionordisease;

[InsuranceOrdinance,2000] Contribution Contribution means Takaful charge or installment payable by a participant; [TakafulRules2005]

Contribution

"Contribution" means an amount as may be voluntarily determined by an individualpayableannually,semiannually,quarterly,ormonthlytooneormore PensionFundManagersandheldinoneormoreindividualpensionaccountsofa participant,subjecttoanyspecifiedminimumlimit;

ContributoriesFund

[VoluntaryPensionSystem Rules, 2006] "Contributories Fund" means the amount contributed by the Contributories throughtheCertificatesissuedundertheseGuidelines. [GuidelinesforIssueofCertificatesofMusharakaforModarabas]

Contributory

"Contributory"meanstheholderofavalidCertificate. [GuidelinesforIssueofCertificatesofMusharakaforModarabas]

Control

"Control" includes the right to appoint majority of directors or to control managementorpolicydecisions,exercisablebyapersonindividuallyorthrough any person acting in concert, directly or indirectly, whether by virtue of his shareholding,managementright_.shareholdersagreement,votingagreementor otherwise; [Listed Companies (Substantial Acquisition of Voting Shares and Takeavers) Ordinance,2002]

ConsumerFinancing

ConsumerFinancingmeansthefinancingallowedtoindividualsformeeting theirpersonal,familyorhouseholdneedsandincludes: (a)creditcardsmeancardswhichallowacustomertomakepayments oncreditandsupplementarycreditcardsshallbeconsideredpart oftheprincipalborrower;and (b)personalloansobtainedbyindividualsforthepaymentofgoods, servicesandexpenses; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

ContingentLiabilities

ContingentLiabilitiesmean, (a)apossibleobligationthatarisesfrompastevents,theexistenceof whichwillbeconfirmedonlybytheoccurrenceornonoccurrence ofoneormoreuncertainfutureeventsnotwhollywithinthe controloftheentity;or (b)apresentobligationthatarisesfrompasteventsbutisnotrecognizedonthe books of the NonBanking and Finance Companies and Collective Investment Schemebecause: (I)itisnot probablethatanoutflowofresourcesembodyingeconomicbenefits

willberequiredtosettletheobligation; or (II)theamountoftheobligationcannotbemeasuredwithsufficientreliabilityand includeslettersofcredit,lettersofguarantee,bidbondsorperformancebonds, advancepaymentguaranteesandUnderwritingCommitments; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008 CostAuditor "Costauditor"meansacostauditorappointedunderrule3. [(AuditCostAccounts)Rules,1998] COTTransaction "COT transaction" means transactions as defined under the Carry Over TransactionsRegulationsexecutedthrough.KarachiAutomatedTradingSystem". [Regulations governing Associate member of Karachi Stock Exchange Clearing House] Court "Court" means the principal civil Court of original jurisdiction in a District, and includesaHighCourtinexerciseofitsordinaryciviljurisdiction;andinrelationto Part IX and Part XVIII, shall have the meaning as in section 7 of the Companies Ordinance,1984(XLVIIof1984); [InsuranceOrdinance,2000] Creditratingcompany "Creditratingcompany"meansacompanywhichintendstoengageinorisso engagedprimarilyinthebusinessofevaluationofcreditriskthrougharecognized andformalprocessofassigningratingtopresentorproposedloanobligationsof anybusinessenterprise; [CreditRatingCompaniesRules,1995] Custodian "Custodian" means a banking company within the meaning of the Banking Companies Ordinance, 1962 (LVII of 1962), or a central depository company approvedbytheCommission,whichisappointedtobeacustodianunderthese rules; [NonBankingandFinanceCompaniesRules,2003] Customer "Customer"hasthemeaningassignedtotheterminclause(d)ofsection2ofthe Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997(XVof1997); [InsuranceOrdinance,2000]

Dealers

"Dealers"meansInvestmentFinanceCompanies,RegisteredCorporateBrokeror Banking Companies who buys commercial paper and resell to investors [GuidelinesforissueofCommercialpaper]

Dealinginsecurities

"Dealinginsecurities"meansmakingorofferingtomake,whetherasprincipalor agent,withanypersonorinducingorattemptingtoinduceanypersontoenter intoortooffertoenterinto i.anyagreementfororwithaviewtoacquiring,disposingof,subscribingforor underwritingsecurities,or ii.anyagreementtheapparentorostensiblepurposeofwhichistosecureaprofit toanyofthepartiesfromtheyieldofsecuritiesorbyreferencetofluctuationsin thevalueofsecurities; [SecuritiesandExchangeCommissionofPakistanAct,1997]

Dealinginsecurities

"dealinginsecurities"meansanactofbuying,sellingoragreeingtobuy, sellordealinanysecuritiesbyanypersoneitherasprincipaloragent; [ListedCompaniesOrdinance(ProhibitionofInsidersTrading)Guidelines]

Debenture

debenturemeansadebentureasdefinedinclause(12)ofsubsection(1) ofsection2oftheCompaniesOrdinance,1984(XLVIIof1984),andincludesa debentureissuedbyanissuerotherthanacompany;[CentralDepositoryAct, 1997]

Defaulterscounter

"defaultersCounter"meansaSeparatecountersetupbytheExchangeinthe trading hall for trading of listed securities for such listed companies who have committedirregularitiesmentionedinPara(a)to(g)ofRegulationNo.32(1),and towhomanopportunityofbeingheardhasbeengiven [ListingRegulationsofKarachiStockExchange]

Deposit

"Deposit" means any deposit of money with, and includes any amount borrowed by, a company, but shall not include a loan raised by issue of debenturesoraloanobtainedfromabankingcompanyorafinancialinstitution; [Companies(InvitationandAcceptanceofdeposits)Rules,1987]

Depositor

"Depositor" includesanyperson,otherthanabankingcompanyorafinancial institution,whohasgivenaloanorprovidedfinanceotherthan; I)financebywayofcontributiontowardssharecapital;or II) finance by way of redeemable capital on contribution to debentures issued bythecompanytoacompany. [Companies(InvitationandAcceptanceofdeposits)Rules,1987]

DFIs

"DFI"meansanyinstitutionasnotifiedundersection3AofBankingCompanies Ordinance1962(LVIIof1962); [MarginTradingRules,2004]

DFIs

"DFIs" means any institution as defined in State Bank of Pakistan's (SBP's) GuidelinesonCommercialPaperorassubsequentlydefinedbySBPfromtimeto time; [GuidelinesforissueofCommercialpaper]

Direct

"Direct",inrelationtothebusinessofinsurance,meansinsuranceotherthan reinsurance; [InsuranceOrdinance,2000]

Director

"Director" includes any person occupying the position of a director, by whatevernamecalled;

[CompaniesOrdinance,1984] DiscretionaryPortfolio Discretionary Portfolio means a portfolio of securities managed by an Non BankingandFinanceCompaniesunderanagreemententeredintowithaclient on a duly notarized stamp paper of applicable value and whereby investment decisions are made and executed by the NonBanking and Finance Companies onbehalfofitsclient; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

12

Distributionfunction

"Distribution function" in relation to a NonBanking and Finance Companies licensed to operate as an asset management company, means the functions withregardto, a. b. receivingapplicationandmoneyforunitsfrompersons; issuing receipts in respect of the applications received in accordance

withclause(a); c. issuingcontractnotestotheapplicantsinaccordancewiththetermsof

theopenendedscheme;and d. receiving redemption notices, transfer instructions and conversion

noticesfromtheholdersforimmediatetransmissiontotheassetmanagement companyortheopenendedscheme; [NonBankingandFinanceCompaniesRules,2003] Document "Document"includessummons,notice,requisition,order,otherlegalprocess, voucherandregister [CompaniesOrdinance,1984] Documents "Documents" include vouchers, bills, promissory notes, securities for leases/advances and claims by or against the modaraba and other documents supportingentriesinthebooksoftheModaraba. [PrudentialRegulationsforModarabas] Domesticinsurance Policy "Domestic insurance policy" means a contract of insurance that provides insurancecoverinrespectoflossofordamagetoabuildingusedprimarilyand principallyasaresidenceforthepolicyholder,forpersonswithwhomthepolicy holder has a family or personal relationship, or for both the policy holder and suchpersons,orlossofordamagetothecontentsofsuchabuilding,orboth; [InsuranceOrdinance,2000] Dulyattested "Dulyattested"meansattestedinthemannerrequiredforfinancialorfuture obligationsbyArticle17oftheQanuneShahadatOrder,1984(P.O.10of1984); [InsuranceOrdinance,2000] Electronicdatabase "Electronicdatabase"meansthesystemformaintainingadatabase relatingtocompanyinformationandincludestheCorporateRegistration System, Corporate Compliance and Facilitation System, and Diary System; [Company(RegistrationOffices)Regulations,2003]

Electronicmedia

"Electronicmedia"includestheinternet,radio,television,tapes,cassettes,all formsofelectronicrecordingmediaincludingcomputerdiskettesandCDROMs; [InsuranceOrdinance,2000]

Electronicsignature

"ElectronicSignature"hasthesamemeaningasgiveninsection2(l)(n)ofthe ElectronicTransactionsOrdinance,2002; [InternetTradingGuidelines,2005]

EligibleInvestor

EligibleInvestormeansapersonofferingminimumoffivemillionrupeesfor investmentandwhofurnishesanundertakingtotheNonBankingandFinance Companies that such investor understands the risks involved in the managementofportfolioondiscretionaryornondiscretionarybasis: Providedthatinthecaseofanentitysuchanundertakingshallbemadebythe boardofdirectorsortrusteesasthecasemaybe; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Eligibleperson

"Eligibleperson"meansapersonspecifiedinclauses(a)and(b)ofsubsection (1)ofsection5; [InsuranceOrdinance,2000]

Eligiblepledgee

"Eligiblepledgee"meansanypersonwhoinaccordancewiththeregulations,is recognized by a central depository as eligible for the purpose of receiving any pledgeofbookentrysecurities; [CentralDepositoryAct,1997]

Eligiblesecurity

"EligibleSecurity"meansasecuritywhichtheCDChasdeclaredtobeeligible fordepositwiththeCDS;

Employee

[ListingRegulationsofKarachiStockExchange] "Employee"meansanyofficerorservantoftheCommission; [SecuritiesandExchangeCommissionofPakistanAct,1997]

Employee

"Employee"means i. ii. iii. aregularemployeeofacompanyworkinginPakistanoroutofPakistan; anexecutivedirectorwhoisonpayrollofacompany;or achiefexecutivewhoisonpayrollofacompany;

[PublicCompanies(EmployeesStockOptionScheme)Rules,2001] Employees compensation "Employees compensation" means the total cost incurred by a company towardsgrosssalaryofitsemployees; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Encumbrance

"Encumbrance"inrelationtoanyproperty,movableorimmovable,meansany mortgage, charge (fixed or floating), hypothecation, pledge, assignment or transferbywayofsecurity,oranyotherformofsecurityorownershipinterest lessthanabsolutelegalandbeneficialownership; [InsuranceOrdinance,2000]

EnquiryOfficer

Enquiry officer means any officer of the Commission, or any other person, whoisappointedbythecommissionunderOrdinanceortheAct;[brokersand& Agents Registration Rules, 2001] person, who is appointed by the Commission undertheOrdinanceortheAct; [Brokers&AgentsRegistrationRules,2001]

Equity

"Equity" includes paid up share capital, reserves and inappropriate profits excludingdeferredtaxreserves,SurplusonRevaluationofFixedAssetsAccount asdescribedinsection235oftheOrdinanceandtreasurystocks; [NonBankingandFinanceCompaniesRules,2003]

Equity

"Equity"includespaidupsharecapital,freereserves,inappropriateprofitsand subordinatedloansexcludingdeferredtaxreservesandtreasurystocks; [LeasingcompaniesRules2000]

Equity

"Equity"includesModarabaFund(freeoflosses),reservesandunappropriated profits. [PrudentialRegulationsforModarabas]

EquityoftheBorrower EquityoftheBorrowerincludespaidupcapital,generalreserves,balancein sharepremiumaccount,reserveforissueofbonussharesandretainedearnings or accumulated losses, revaluation reserves on account of fixed assets and SubordinatedLoans: Explanation:Revaluationreserveswillremainpartoftheequityforfirst threeyearsonly,fromthedateofassetrevaluation,duringwhichtimethe BorrowerwillstrengthenitsequitybasetoenableittoavailFacilitywithoutthe benefitofrevaluationreserves; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Equitysecurity

"Equitysecurity"meansanystockortransferableshare(preferredorcommon) or similar security representing ownership; any security convertible, with or withoutconsideration,intosuchasecurity,orcarryinganywarrantorrightto subscribe to or purchase such a security; any such warrant or right itself, and suchothersecurityasmaybeprescribed; [SecuritiesandExchangeOrdinance,1969]

Exercise

"Exercise" means making of an application by an employee to a company for issueofsharesagainstoptionvestedinhiminpursuanceofaScheme; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Exerciseperiod

"Exercise period" means the time period after vesting within which an employeeshouldexercisehisrighttoapplyforsharesagainstanoptionvested inhiminpursuanceoftheScheme; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Exerciseprice

"Exercise price" means the price payable by an employee for exercising an optiongrantedtohiminpursuanceofaScheme; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Existingcompany

"Existing company" means a company formed and registered under any previousCompaniesAct; [CompaniesOrdinance,1984]

Exposure Exposure

"Exposure"wouldincludefundandnonfundbasedfacilities. [PrudentialRegulationsforModarabas] "Exposure" means "at any point in time, scripwise cumulative net unsettled amount of purchases and sales, added together, of a member, under Ready Counter. [Regulations Governing Members Exposure of the Karachi Stock Exchange (Guarantee)Limited]

Exposure

ExposureincludesFacilityandsubscriptiontoorinvestmentinequity securities,debtinstrumentsorsecurities,unitsorcertificatesorsharesofa CollectiveInvestmentScheme,moneymarketplacements,deposits,Certificate of Deposits, Continuous Funding System, forward contracts, derivatives and creditcards,butdoesnotinclude: (a)obligationsunderlettersofcreditand lettersofguaranteetotheextentof cashmarginheldbyanNonBankingandFinanceCompanies; (b)aFacilityprovidedtofinancialinstitutionsthroughREPOtransactions withunderlyingstatutoryliquidityrequirementeligiblesecurities; (c)lettersofcreditestablishedfortheimportofplantandmachinery;and (d)depositsoflessthanninetydays. [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Exposureorfacilities Facilities Facility

"Exposure or facilities" include fund based and nonfund based facilities; [LeasingCompanies(EstablishmentandRegulation)Rules,2000] "Facilities"includeafundbasedandnonfundbasedfacilities. [PrudentialRegulations,forModarabas] "Facility"includesafinancingunderasystemwhichisbasedonparticipationin profit and loss, markup or markdown in price, hirepurchase, lease, rent sharing, bills of exchange, promissory notes or other instruments with or without buyback arrangement by a seller, participation term certificate, musharikaormodarabacertificate,termfinancecertificateoranyothermode, guarantees, indemnities, letters of credit and any other obligation, whether fundbasedornonfundbased;

FamilyTakaful

[NonBankingandFinanceCompaniesRules,2003] Family Takaful means Takaful for the benefit of individuals, groups of individuals and their families as elaborated in the provisions of the Ordinance pertainingtolifeinsurancebusiness;

Finance

[TakafulRules2005] Finance has the meaning assigned to term in clause (e) of section 2 of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997(XVof1997); [InsuranceOrdinance,2000]

Financialinstitution

"Financialinstitution"meansaninstitution,otherthanabankingcompanyas defined in the Banking Companies Ordinance, 1962 (LVII of 1962), notified as such by the Commission either specifically or generally and shall include such otherinstitutionsorcompaniesnotifiedbytheFederalGovernmentasfinancial institutions. [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002]

Financialinstitution

"Financialinstitution"includes: (i) a company or an institution whether established under any special

enactment and operating within or outside Pakistan which transacts the businessofbankingoranyassociatedorancillarybusinessthroughitsbranches; (ii) a modaraba, leasing company, investment bank, venture capital

company,financingcompany,housingfinancecompany,anonbankingfinance company;and (iii) suchotherinstitutionorcompaniesauthorizedbylawtoundertakeany

similarbusiness,astheFederalGovernmentmay,bynotificationintheofficial Gazette,specifyforthepurpose; [Companies(Amendment)Ordinance,2002] Financialinstitution "Financial institution" means a Bank or DFI or NonBanking and Finance Companies [MarginTradingRules,2004] Financialinstitution "Financialinstitution"includes: i. a company or an institution whether established under any special enactmentandoperatingwithinoroutsidePakistanwhichtransacts the business of banking or any associated or ancillary business throughitsbranches; ii. a modaraba, leasing company, investment bank, venture capital company, financing company, housing finance company, a non bankingfinancecompany;and iii. such other institution or company authorized by law to undertake anysimilarbusiness,astheFederalGovernmentmay,bynotification intheofficialGazette,specifyforthepurpose; [CompaniesOrdinance,1984]

Financialinstitution

"Financial institution" means a Bank or DFI or NonBanking and Finance Companies; [MarginTradingRules,2004]

Financialyear

"Financialyear"inrelationtoanybodycorporate,meanstheperiodinrespect ofwhichanyprofitandlossaccountortheincomeandexpenditureaccount,as the case may be, of the body corporate, laid before it in general meeting, is madeup,whetherthatperiodisayearornot; [CompaniesOrdinance,1984]

FSV

FSVmeanstheforcedsalevaluewhichreflectsthepossibilityofprice fluctuations and can be realized by selling the mortgaged, pledged, leased or collaterallyheldassetsinforcedordistressedsaleconditions; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Form

"Form"meansaformsetoutinanyoftheschedulesasprescribed; [CompaniesOrdinance,1984]

Freereserves,

"Free reserves" include any amount which, having been set aside out of the revenue or other surpluses is free in that it is not retained to meet any diminutioninvalueoftheassets,specificliability,contingencyorcommitment ofthatcompanyknowntoexistatthedateofthebalancesheet; [Companies(Invitation&AcceptanceofDeposits)Rules,1987]

Fund

"Fund"meansthefundestablishedundersection23; [SecuritiesandExchangeCommissionofPakistanAct,1997]

Futurereceivables

"Future receivables" includes all such receivables against which income may accrueorariseatafuturedate; [Companies(AssetBackerSecuritization)Rules,1999]

GeneralTakaful

GeneralTakafulmeansTakafulotherthanFamilyTakaful; [TakafulRules2005]

Governmentsecurities "Governmentsecurities"meansGovernmentsecuritiesasdefinedinthe SecuritiesAct,1920(Xof1920); [InsuranceOrdinance,2000]

"Government securities" include such types of Pakistani rupee and foreign

Governmentsecurities currency obligations of the Federal Government or of a Corporation wholly ownedorcontrolled,bytheFederalGovernmentorProvincialGovernmentend guaranteed by the Federal Government as the Federal Government may, by notificationintheOfficialGazette,declaretotheextentdeterminedfromtime totime,tobeGovernmentsecurities; [LeasingCompanies(EstablishmentandRegulation)Rules,2000] Governmentsecurities Government securities include monetary obligations of the Federal Government or a Provincial Government or of a corporation wholly owned or controlled, directly or indirectly, by the Federal Government or a Provincial GovernmentandguaranteedbytheFederalGovernmentandanyothersecurity astheFederalGovernmentmay,bynotificationintheOfficialGazette,declare, totheextentdeterminedfromtimetotime,tobeaGovernmentSecurities; GreenShoeOption (GSO) Group [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008] "Green Shoe Option (GSO)" means a predetermined amount of TFCs to be retainedincaseofoversubscriptionoftheissue. [GuidelinesfortheIssueofTermFinanceCertificates(TFCs)toGeneralPublic] "Group" in relation to contracts of life insurance, including health insurance; means contracts having a term not dependent upon the termination or continuationofhumanlife,underwhichthebenefitsarepayabletoamember ofagroupdefinedinthecontractonthehappeningtothatmemberduringthe term of the contract of a contingency defined in the contract, not being a contingencywhichisboundtohappen; [InsuranceOrdinance,2000] Handling "Handling"withitsgrammaticalvariationsandcognateexpressions,inrelation to a bookentry security, means the transfer of a bookentry security by electronicorsimilarmeans,thepledgingofabookentrysecurityinaccordance with section 12 or the withdrawal from the central depository system of the securityrepresentedbythebookentrysecurity; HOIA HoldingCompany [CentralDepositoryAct,1997] "HOIA"meanstheHeadofInternalAuditoftheExchange. [RegulationsgoverningSystemAuditofBrokers] "Holdingcompany"meansaholdingcompanyasdefinedinsection3; [CompaniesOrdinance,1984]

Hoursofoperation

"HoursofOperation"meansthetimeperiodsoneachdaythattheExchangeis openfortradingduringwhichKarachiAutomatedTradingSystem isavailableto theMembersforautomatedtradingintheExchange. [KarachiAutomatedTradingSystemRegulations]

Housingfinance company Housingfinance company

"Housingfinancecompany"meansacompanylicensedtoprovide housingfinanceservicesasmentionedinrule20; [NonBankingandFinanceCompaniesRules,2003] "Housing finance company" means an NonBanking and Finance Companies licensedbythecommissiontoprovidehousingfinanceservices; [NonBankingFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Housingfinance services

"Housing finance services" means financial services related to development and construction of residential and commercial properties and comprise the servicesasspecifiedinrule20; [NonBankingandFinanceCompaniesRules,2003]

Independentdirector Information

"Independentdirector" meansadirectorofacompany,notbeingawholetime directorandwhoisneitherapromoternorbelongstoapromotergroup; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001] "Information" includes data recorded in a form which can be processed by equipment operating automatically in response to instructions given for a particularpurpose;

Insider

[CentralDepositoryAct,1997] "Insider"means i. a person who is a director, chief executive, managing agent, chief accountant,secretaryorauditorofalistedcompanyorthebeneficial ownerholdingdirectlyorindirectlynotlessthan10%ofthesharesof alistedcompany;or ii. apersonwho,isorwasconnectedwiththecompanyorisdeemedto have been connected with the company, and who is reasonably expected to have access, by virtue of such connection, to unpublishedpricesensitiveinformationinrespectofsecuritiesofthe company who has received or has had access to such unpublished pricesensitiveinformation; [ListedCompanies(ProhibitionofInsidersTrading)guidelines2001]

Insurance

"Insurance" means the business of entering into and carrying out policies or contracts, by whatever name called, whereby, in consideration of a premium received, a person promises to make payment to another person contingent uponthehappeningofanevent,specifiedinthecontract,onthehappeningof which the secondnamed person suffers loss, and includes reinsurance and retrocession:Providedthatacontractoflifeinsuranceshallbedeemedtobea contractofinsurancenotwithstandingthatitmaynotcomplywiththedefinition setoutinthisclause; [InsuranceOrdinance,2000]

Insurancebroker

"Insurance broker" means a person carrying on the business of insurance broking;

Insurancebroking

[InsuranceOrdinance,2000] "Insurance broking" means the arrangement of insurance for reward by a personotherthananagentofaninsurancecompany; [InsuranceOrdinance,2000]

Insurance Ombudsman Insurer

"Insurance Ombudsman" means the officer appointed by the Federal Governmentundersection125; [InsuranceOrdinance,2000] "Insurer"means: i. any company or other body corporate carrying on the business of insurance,whichisacompanyorotherbodycorporateincorporated underanylawforthetimebeinginforceinPakistan;and ii. any body corporate incorporated under the law of any jurisdiction outsidePakistancarryingoninsurancebusinesswhichcarriesonthat businessinPakistan.

Internettrading serviceprovider

[InsuranceOrdinance,2000] "Internettradingserviceprovider"meansanypersonofferingtradingservice insecuritiesthroughtheinternetundertheseGuidelines; [InternetTradingGuidelines,2005]

Investmentadviser

"Investment adviser" includes, person who is, for compensation, engaged in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasingorsellingsecurities,butdoesnotinclude, i. ii. abank; any lawyer, accountant, engineer or teacher whose performance of suchservicesissolelyincidentaltothepracticeofhisprofession; iii. anybroker,jobber,memberorassociatewhoseperformanceofsuch servicesissolelyincidentaltotheconductofhisbusinessasabroker, jobber, member or associate and who receives no separate compensationtherefore iv. thepublisherofanynewspaper,newsmagazine,orotherpublication ofgeneralandregularcirculation;or v. theInvestmentCorporationofPakistan;

Investmentadviser

[SecuritiesandExchangeOrdinance,1984] InvestmentadvisormeansanNonBankingandFinanceCompanieslicensed bytheCommissiontoprovideinvestmentadvisoryservices; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Investmentadvisory services

"Investmentadvisoryservices"meantheservicesprovidedformanagementof closedendfundsandincludethebusinessofadvisingothers,eitherdirectlyor through publications or writings, as to the value of securities or as to the advisabilityofinvestingin,purchasingorsellingofsecuritiesforremuneration; [NonBankingandFinanceCompaniesRules,2003]

Investmentcompany

"Investment Company" means a company engaged principally or wholly in buying and selling securities of other companies and includes a company, not beingaholdingcompany,theinvestmentofwhichinthesharecapitalofother companiesatanyonetimeisofanamountequivalenttoeightypercentofthe aggregate of its own paid up capital and free reserves, but does not include a bankoraninsurancecompanyoracorporationwhichisamemberofaStock Exchange; [SecuritiesandExchangeOrdinance,1969]

Investmentcompany Investmentcontract

"InvestmentCompany"meansacompanyregisteredwiththeCommissionin accordancewiththeseRegulations; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008] "Investmentcontract"meansacontractofinsurance,providingforbenefitsto be paid on death or on a specified date or dates before death where the benefits paid are calculated by reference to either a running account or units underthecontractwhetherornottheminimumvalueofthataccountorthose units is guaranteed and providing for the account to be increased during the currencyofthecontract; [InsuranceOrdinance,2000]

Investmentfinance company Investmentfinance services

"Investmentfinancecompany"meansacompanylicensedbytheCommission toprovideinvestmentfinanceservicesasmentionedinrule14; [NonBankingandFinanceCompaniesRules,2003] "Investmentfinanceservices"includemoneymarketactivities,capitalmarket activities, project finance activities, corporate finance services and general servicesasdescribedinrule14; [NonBankingandFinanceCompaniesRules,2003]

Investmentlinked

"Investment linked" in relation to life insurance means investment contracts, theprincipalobjectofwhichistheprovisionofbenefitscalculatedbyreference tounits,thevalueofwhichisrelatedtothemarketvalueofaspecifiedclassor groupofassetsofthepartybywhomthebenefitsaretobeprovided; [InsuranceOrdinance,2000]

Investor Investor Investors

"Investor" means a person holding any asset backed securities issued bya SpecialPurposeVehicle; [Companies(AssetBackedSecuritization)Rules,1999] "Investor" means a person, not being Member, his agent or representative, who,haspurchasedorsoldanyofthesecuritieslistedattheExchange [InvestorsProtectionFundRegulations) "Investors" means the initial investors or subsequent buyers of commercial paperinthesecondarymarket [GuidelinesfortheIssueofCommercialPaper]

Issuer

"Issuer" means any person, the Federal Government or a Provincial Governmentwhoorwhichhasissuedorproposestoissueanysecurity [CentralDepositoryAct,1997]

Issuer

"Issuer" means a company that intends to raise shortterm finance by issuing commercialpaper [GuidelinesforissueofCommercialpaper]

IssuingandPaying Agent(IPA)

Issuing and Paying Agent (IPA) means a Scheduled Bank, an Investment Finance Company or a DFI having a minimum Credit Rating Grade of A (mediumtolongterm)andA2(shortterm)fromanyratingagency [GuidelinesforissueofCommercialpaper]

Jobberordealer

"Jobber or dealer" means any person engaged in the business of effecting transactions in securities for his own account, through a broker or otherwise, but does not include any person who trades in securities for his own account, either individually or in some fiduciary capacity, otherwise than as a part of a regularbusiness; [SecuritiesandExchangeOrdinance1969]

Jumbocertificates

"Jumbo certificates" mean one or more consolidated certificates of the securities of one kind or class issued by an issuer which are registered in the nameofacentraldepository; [CentralDepositoryAct,1997]

KarachiAutomated TradingSystem(KATS)

"KarachiAutomatedTradingSystem(KATS)"meansthesecuritiesautomated tradingsystemintroducedbytheKarachiStockExchange(Guarantee)Limited. [KarachiAutomatedTradingSystemRegulations]

LastQuotedPrice

"LastQuotedPrice" means"TheClosingPriceasreportedbytheExchange,on eachtradingday,forthepurposesofriskmanagementandcollectionofmarket tomarketdifferences". [MarginTradingRegulations]

LawofInsurance

"Law of Insurance" means the Insurance Ordinance, 2000 (XXXIX of 2000) or anyotherlawinrelationtoinsurance,theadministrationofwhichisvestedin the Commission by the Federal Government by notification in the official Gazette." [SecuritiesandExchangeCommissionofPakistanAct,1997]

Leasekeymoney

"Leasekeymoney"meansleasesecuritydeposit; [LeasingCompanies(EstablishmentandRegulation)Rules,2000]

Leasing

"Leasing" includes financial services provided on operating lease or finance leasebasis,inaccordancewithInternationalAccountingStandard17; [NonBankingandFinanceCompaniesRules,2003]

Leasingcompany

"Leasing company" means a company licensed by the Commission to undertakeleasing; [NonBankingandFinanceCompaniesRules,2003]

Leasingcompany

"Leasingcompany" meansacompanyengagedwhollyinthebusinessofleasing or which invests in such business at any one time an amount equivalent to at least seventy per centof its assets. Provided that cash and bank balances and investment in government securities shall be excluded to calculate investment inleasingbusinessforpurposesofthisdefinition; [LeasingCompanies(EstablishmentandRegulation)Rules,2000]

Legaladviser Lender

"Legal Adviser" means a person appointed as such under section 3; [Companies(AppointmentofLegalAdvisers)Act,1974] "Lender"meansapersoninsideoroutsidePakistancarryingonthebusinessof advancing money byway of loans or finance and includes a banking company; [InsuranceOrdinance,2000]

LifeInsurance Company

"Life insurance company" means a company registered under the Insurance Ordinance, 2000 (XXXIX of 2000), to transact life insurance business, and includestheStateLifeInsuranceCorporationofPakistan; [VoluntaryPensionSystemRules,2006]

Limitorder

"Limit order" means to buy or sell a security at a customer specified price; [RegulationsforProprietaryTrading,2004]

Liquidassets

Liquid assets means the assets which are readily convertible into cash and includes encashment or realizable value of Government Securities, bank deposits, shares of listed companies which are actively traded on the stock exchange, NIT units, certificates or shares of a Closed End Fund, Certificate of DepositissuedbyDFIsorNonBankingandFinanceCompaniesandCertificates of Musharika issued by Modarabas rated at least A by a credit rating agency registered with the Commission, listed TFCs, Sukuks and commercial papers rated at least A by a credit rating agency registered with the Commission, National Saving Scheme securities and units of Open End Scheme for which a duly licensed Asset Management Company quotes daily offer and redemption price; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Liquidnetworth

"Liquidnetworth"meansthebookvalueornetworthofaNonBankingand Finance Companies reduced by its fixed assets and direct investment of more than twenty percent in the paid up capital of client enterprises or a lease or leasesinrespectofitsassetsaggregatingmorethantwentypercentofthetotal assetsoftheenterprise; [NonBankingandFinanceCompaniesRules,2003]

Listed

"Listed"inrelationtosecurities,meanssecuritieswhichhavebeenallowedto betradedonastockexchange; [CompaniesOrdinance,1984]

Listedcompany

"Listedcompany"meansacompanyorabodycorporatewhosevotingshares arelistedonastockexchange; [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002]

Listedcompany

"Listed company" means a company, a body corporate or corporation (including a body corporate or corporation incorporated outside Pakistan) or other body whose securities are allowed to be traded on a stock exchange (insideoroutsidePakistan), [InsuranceOrdinance,2000]

Listedcompany Listedcompany

"Listedcompany" meansacompanyorabodycorporateorotherbodywhose securitiesarelisted: [CompaniesOrdinance,1984] "Listedcompany"meansacompanyorabodycorporateorotherbodywhich has been listed in accordance with the regulations and whose securities are listed and include a provisionally listed company under these regulations for tradinginprovisionallylistedcompaniesoftheExchange; [ListingRegulationsofKarachiStockExchange]

Loan

"Loan" has the meaning assigned to the term in clause (f) of section 2 of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997(XVof1997); [InsuranceOrdinance,2000]

Maintenancemargin

"Maintenance margin" means the minimum amount of margin that must be maintainedbyaclientinamarginaccount; [MarginTradingRules,2004]

Majorshareholder

"Major shareholder" means any person holding five per cent or more of the paidupsharecapital; [LeasingCompanies(EstablishmentandRegulation)Rules,2000]

Makemarket Managertotheoffer Managingagent

"Make Market" means the continuous submission of twoway quotes by a MarketMakerforthepurchaseandsaleoftheCompany'ssecurities". [TheRegulationsGoverningOverTheCounter(OTC)Market] "Managertotheoffer"meansamanagerappointedundersection7ofListed Companies [(SubstantialAcquisitionofVotingSharesandTakeovers)Ordinance,2002] "Managingagent"hasthemeaningascribedtothatterminsection206ofthe CompaniesOrdinance,1984(XLVIIof1984); [InsuranceOrdinance,2000]

Margin

"Margin" means the amount of cash and approved securities deposited as security bya client as a percentage of the current marketvalue of the margin securities held in a margin account for the purpose of margin financing and margintradingasprovidedintheserules, [MarginTradingRules,2004]

Margin

"Margin" means the amount of cash or approved securities deposited by the finance or by the financier as security for the purpose of Continuous Funding SystemasprovidedundertheseRegulations. [ContinuousFundingSystemRegulations,2005]

Marginaccount

"Margin account" means an account maintained with the broker, which recordstransactionsofmargintrading; [MarginTradingRules,2004]

Marginagreement

"Marginagreement"meanstheagreementbetweenthebrokerandhisclient fortheadministrationofmarginaccountforthepurposeofmargintrading; [MarginTradingRules,2004]

Margincall

"Margincall"meansanoticeissuedinwriting byabrokertohisclientinthe form of a letter by courier or registered post or fax or by hand subject to acknowledgementorbyelectronicmail(withtheonusonthebrokertoprove issuance of such notice) requiring the client to provide additional margin in ordertokeepmaintenancemargin;

Marginfinancing

[MarginTradingRules,2004] "Marginfinancing"meansfinancingtotheclientbythebrokerfortidepurpose ofmargintrading; [MarginTradingRules,2004]

Marginloan

"Marginloan"meansaloanmadebyaNonBankingandFinanceCompanies, licensedtoprovideinvestmentfinanceservicestopartlyfinanceinvestmentby theclientinmarketablesecurities,whichshallbeheldbytheNonBankingand FinanceCompaniesascollateral,theamountinvestedbytheclientbeingthe "margin"againsttheloan; [NonBankingandFinanceCompaniesRules,2003]

Margintrading

"Margin trading" means the buying of securities by the broker far his client throughmarginfinancing; [MarginTradingRules,2004]

Marketmaker

"Marketmaker" means"abrokerappointedundertheseRegulationswhoshall MakeMarketfortheCompany'ssecuritiesonacompulsoryacontinuousbasis". [TheRegulationsGoverningOverTheCounter(OTC)Market]

Marketprice

"Marketprice" inrelationtosharesonagivendate,meanstheclosingpriceof the shares on that date on the stock exchange on which the shares of a companyarelisted; Explanation. If the shares are listed on more than one stock exchange, but quotedonlyononestockexchangeonagivendate,thenthepriceonthatstock exchange shall be considered. If the share price is quoted on more than one stockexchange,thenthestockexchangewherethereishighesttradingvolume on that date shall be considered. If share price is not quoted on a given date, thenthesharepriceonthelasttradingdayshallbeconsidered. [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Member

"Member"meansaMemberoftheBoard; [SecuritiesandExchangeCommissionofPakistanAct,1997]

Member

"Member" means a member as defined in clause (21) of subsection (1) of section 2 of the Companies Ordinance, 1984(XLVII of 1984), and includes the registeredownerofanyequitysecurityofanissuerwhichisestablishedunder anyotherlaw [CentralDepositoryact,1997] "Member"means,inrelationtoacompanyhavingsharecapital,asubscriberto thememorandumofthecompanyandeverypersontowhomisallotted,orwho becomes the holder of, any share, scrip or other security which gives him a voting right in the company and whose name is entered in the register of members,and,inrelationtoacompanynothavingasharecapital,anyperson who has agreed to become a member of the company and whose name is so entered, [CompaniesOrdinance,1984]

Member

Member Member

"Member"meansamemberofaStockExchange; [Securities&ExchangeOrdinance,1969] "Member" means "An active Member of the Exchange, who has been duly registeredwiththeSecuritiesandExchangeCommissionofPakistan,under; [BrokersandAgentsRegistrationRules,2001]

Member

'Member'meansamemberoftheReligiousBoardandincludestheChairman [ModarabaCompaniesandModarabaRules,1981]

Memberofthefamily

"Member of the family" in relation to any person, means the husband or a wife, the dependent father, mother, brother or sister, or a minor son or unmarrieddaughterofthatperson; [InsuranceOrdinance,2000]

Memorandum

"Memorandum" means the memorandum of association of a company as originallyframedorasalteredfromtimetotimeinpursuanceoftheprovision ofanypreviousCompaniesActorofthisOrdinance; [CompaniesOrdinance,1984]

Modaraba

"Modaraba" means a business in which a person participates with his money andanotherwithhiseffortsorskillorbothhiseffortsandskillandshallinclude UnitTrustsandMutualFundsbywhatevernamecalled; [ModarabaCompaniesandModaraba(FloatationandControl)Ordinance,1980]

ModarabaCertificate

"Modarabacertificate" meansacertificateofdefinitedenominationissuedto thesubscriberoftheModarabaacknowledgingreceiptofmoney subscribedby him; [ModarabaCompaniesandModaraba(FloatationandControl)Ordinance,1980]

Modarabacompany

"Modaraba company" means a company engaged in the business of floating andmanagingmodaraba; [ModarabaCompaniesandModaraba(FloatationandControl)Ordinance,1980]

Modarabafund

"Modaraba fund" means a fund raised through floatation of modaraba; [ModarabaCompaniesandModaraba(FloatationandControl)Ordinance,1980]

Modarababased contract

ModarabaBasedcontractmeansaTakafulcontractbasedontheprincipleof modaraba; [TakafulRules2005]

Mutualinsurance company

"Mutualinsurancecompany"meansaninsurer,beingacompanyincorporated underthelawofPakistanoranycountryorstateotherthanPakistan,whichhas nosharecapitalandofwhich,byitsconstitution,onlyandallpolicyholdersare members; [InsuranceOrdinance,2000]

NationalInsurance corporation NonBankingand FinanceCompanies

"NationalInsuranceCorporation"meansthecorporationestablishedunderthe NationalInsuranceCorporationAct,1976; [InsuranceOrdinance,2000] "NonBankingandFinanceCompanies"meansanonbankingfinancecompany thatislicensedbytheCommissiontoengageinoneormoreformsofbusiness in terms of rule 5 provided that its memorandum and articles of association permitsittodoso,andincludesassetmanagementcompany,discounthouse, housing finance company, investment adviser, investment finance company, leasing company, venture capital company and such other company or body corporate as the Federal Government may, by notification in the Official Gazette,specifyforthepurpose; [NonBankingandFinanceCompaniesRules,2003]

NBFI

"NBFI" means a nonbanking financial institution includes a development financeinstitution,amodaraba,aleasingcompany,ahousingfinancecompany andaninvestmentbankbutshallnotincludeabankingcompanyasdefinedin clause(c)ofsection5oftheBankingCompaniesOrdinance,1962(LVIIof1962); [SecuritiesandExchangeCommissionofPakistanAct,1997]

NegotiatedDeal

"Negotiated deal" means a deal which has been negotiated between two partiesoutsidetheregularmarket. [KarachiAutomatedTradingSystemRegulations]

Netassetvalue

"Netassetvalue"inrelationtoapensionfund,meanstheexcessofassetsover liabilities of the pension fund, such excess being computed in the manner specified hereunder or as may be specified by the Commission from time to time,namely: i Asecuritylistedonastockexchangeshallbevaluedatitslastsaleprice

onsuchexchangeonthedateasofwhichitisvalued,orifsuchexchangeisnot open on such date, then at its last sale price on the next preceding date on which such exchange was open and if no sale is reported for such date, the securityshallbevaluedatanamountnothigherthantheclosingaskedpricenor lowerthantheclosingbidprice.Wherepriceisnottrulyrepresentativeofthe market value because it is thinly traded or not traded, the trustee with concurrenceoftheauditormayprescribeanalternatemethod; ii aninvestmentpurchasedandawaitingpaymentagainstdeliveryshallbe

includedforvaluationpurposesasasecurityheld,andthecashaccountofthe company shall be adjusted to reflect the purchase price, including brokers' commission and other expenses incurred in the purchase thereof but not disbursedasofthevaluationdate; iii an investment sold but not delivered pending receipt of proceeds shall

bevaluedatthenetsaleprice; iv thevalueofanydividends,bonus,sharesorrightswhichmayhavebeen

declaredonsecuritiesintheportfoliobutnotreceivedbythecompanyasofthe close of business on the valuation date shall be included as assets of the company, if the security upon which such dividends, bonus or rights were declared is included in the assets and is valued exdividend, exbonus or ex rights,asthecasemaybe; v debtsecuritynotlistedorquotedonastockexchangeshallbevaluedat

fairvaluedeterminedtothesatisfactionofthetrustee; vi interestaccruedonanyinterestbearingsecurityintheportfolioshallbe

included as an asset of the company if such accrued interest is not otherwise includedinthevaluationofthesecurity; vii any other income accrued up to the date on which computation was

madeshallalsobeincludedintheassets; [VoluntaryPensionSystemRules,2006]

Netassets

"Netassets"inrelationtoacollectiveinvestmentscheme,meanstheexcessof assets over liabilities of the collective investment scheme, such excess being computedinthemannerspecifiedhereunder,namely a. asecuritylistedonastockexchangeshallbevaluedatitslastsaleprice

on such exchange on the date on which it is valued or if such exchange is not open on such date, then at its last sale price on the next preceding date on which such exchange was open and if no sale is reported for such date the securityshallbevaluedatanamountneitherhigherthantheclosingaskedprice norlowerthantheclosingbidprice; b. aninvestmentpurchasedandawaitingpaymentagainstdeliveryshallbe

includedforvaluationpurposesasasecurityheldandthecashaccountofthe collective investment scheme shall be adjusted to reflect the purchase price including brokers' commission and other expenses incurred in the purchase thereofbutnotdisbursedasofthevaluationdate; c. an investment sold but not delivered pending receipt of proceeds shall

bevaluedatthenetsaleprice; d.thevalueofanydividends;bonusorrightswhichmayhavebeendeclaredon securitiesintheportfoliobutnotreceivedbythecollectiveinvestmentscheme asofthecloseofbusinessonthevaluationdateshallbeincludedasassetsof the collective investment scheme if the security upon which such dividends, bonuses or rights were declared is included in the assets and is valued ex dividend,exbonusorexrightsasthecasemaybe; e. markup accrued on any markupbearing security in the portfolio shall

be included as an asset of the collective investment scheme if such accrued markupisnototherwiseincludedinthevaluationofthesecurity; f. any other income accrued upto the date on which computation was

madeshallalsobeincludedintheassets; g. allliabilities,expenses,taxesandotherchargesdueoraccrueduptothe

date of computation which are chargeable under these rules, other than the paidupcapitaloftheclosedendfund,shallbededucedfromthevalueofthe assets;and h. theremunerationaccrueduptothedateofcomputationpayabletothe

investment adviser or asset management company, as the case may be, for

providingmanagementandotherservicesshallbeincludedasanexpense; i. asecuritynotlistedorquotedonastockexchangeshallbevaluedat

investmentpriceoritsbreakupvalueasperlastauditedaccounts,whicheveris later; [NonBankingandFinanceCompaniesRules,2003] Netcapital "Netcapital"inrelationtoaNonBankingandFinanceCompanieslicensedto operate as an investment adviser, means an amount by which the current assets,i.e.cashinhandorinbank,moneyreceivablewithinaperiodoftwelve monthsfromthedateofthebalancesheetandsuchotherassets,notbeingthe value of securities referred to in clause (b) of rule 33, as are classified under generally accepted accounting principles, exceed the current liabilities, i.e. moneypayablewithinaperiodoftwelvemonthsfromthedateofthebalance sheet and such other liabilities as are classified under generally accepted accountingprinciples; [NonBankingandFinanceCompaniesRules,2003] Netcapital "Netcapital"inrelationtoamemberofstockexchange,meansanamountby which the current assets, namely, cash in hand or in bank, money receivable withinaperiodoftwelvemonthsfromthedateofthebalancesheetandsuch otherassets,notbeingvalueofthemembershipcardofthestockexchange,as are so classified under generally accepted accounting principles, exceed the current liabilities, namely, money payable within a period of twelve months fromthedateoftheBalancesheetandsuchotherliabilitiesasaresoclassified undergenerallyacceptedaccountingprinciples; [SecuritiesandExchangeRules,1971] Nomineedirector "Nomineedirector"meansanindividualnominatedbyasinglemembertoact asdirectorincaseofhisdeath; [SingleMemberCompaniesRules,2003] NonDiscretionary Portfolio NonDiscretionaryPortfoliomeansaportfolioofsecuritiesmanagedbyan NonBanking and Finance Companies under an agreement entered into with theclientonadulynotarizedstamp paperofapplicablevaluewherebyinvestmentdecisionsareexecutedbythe NonBankingandFinanceCompaniesonwritteninstructionsoftheclient; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

NotifiedEntity

NotifiedEntitymeansacompanyorclassofcompaniesorcorporatebodyor trust or any other entity or person notified by the Federal Government in the officialGazette; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Offerperiod

"Offer period" means the period from the date of public announcement of publicoffertothedateofclosureofpublicofferorearlierwithdrawalthereof, [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002]

Offerprice

"Offer price" means "the price for which a Market Maker is willing to sell a Company'ssecurity". [TheRegulationsGoverningOverTheCounter(OTC)Market]

Offeringdocument

"Offeringdocument"meansapublisheddocumentcontaininginformationon aCollectiveInvestmentSchemetoinvitethepublicforpurchaseofcertificates orunitsinthatscheme; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Offeringdocument

"Offering document" means documents containing information on a security calculatedtoinviteoffersforthepurchaseofsuchsecurity; [Companies(AssetBackedSecuritization)Rules,1999]

Officer

"Officer" has the meaning assigned to that expression in clause (24) of subsection(1)ofsection2oftheCompaniesOrdinance,1984(XLVIIof1984); [InsuranceOrdinance,2000].

Officer

"Officer" includes any director, chief executive, managing agent, secretary or other executive of the company, howsoever designated, but, save in sections 205,220to224,260,261,268,351,352,412,417,418,474and482,doesnot includeanauditor; [CompaniesOrdinance,1984] .

Officer

"Officer"inrelationtoanissuerincludesmanagingagents,manager,secretary oraccountantoftheissuerandanyotherpersonwhobyvirtueofhisofficemay be in possession of any material information with regard to the affairs of the issuer; [SecuritiesandExchangeRules,1971]

Officer

"Officer"meansapersonasdefinedinclause(24)ofsubsection(1)ofsection 2 of the Companies Ordinance, 1984 and includes an auditor of the company; [ListedCompanies(ProhibitionofInsidersTradingGuidelines)]

Openendscheme

"Openendscheme"meansaschemeconstitutedbywayofatrustdeedthat continuouslyoffersforsaleitsunitsasspecifiedintheConstitutiveDocument that entitle the holder of such units on demand to receive his proportionate share ofthenetassetsoftheschemelessanyapplicablecharges; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Option

"Option" means a right but not an obligation granted to an employee in pursuanceofaSchemetoapplyforsharesofacompanyatapredetermined price; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Order

"Order" means a valid sale or purchase order placed by a Member through KarachiAutomatedTradingSystem. [KarachiAutomatedTradingSystemRegulations]

Originator

"Originator" means a person who transfers to a Special Purpose Vehicle any assets in the form of present or future receivables as a consequence of Securitization; [Companies(AssetBackedSecuritization)Rules,1999]

OtherFormofSecurity Other Form of Security includes hypothecation of stock (inventory), assignmentofreceivables,leaseRentals,contractreceivables; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008] PakistanInsurance Corporation "PakistanInsuranceCorporation"meansthecorporationestablishedunderthe PakistanInsuranceCorporationAct,1952(XXXVIIIof1952); [InsuranceOrdinance,2000]

Participant

"Participant"means a. b. anaccountholderwhoisamemberofastockexchange;and any other accountholder who meets the qualifications of a participant

prescribedintheregulationsProvidedthatsuchaccountholders I.performservicesforsubaccountholdersinaccordancewiththetermsofan agreement entered into between the central depository and each of the participants; II. transfer any securities to the central depository to the credit of any sub accountsundertheirrespectiveaccounts;and III. handle, on behalf of subaccount holders, the bookentry securities in the subaccountsundertheirrespectiveaccounts [CentralDepositoryAct,1997] Participant "Participant"meansanypersononwhosebehalfcontributionsaremadeinto one or more pension funds and held in one or more identifiable individual pensionaccountsmanagedbyoneormorePensionFundManagers; Participants InvestmentAccount (PIA) Participants InvestmentFund (PIF) Participants membership document(PMD) ParticipantsTakaful Fund(PTF) [VoluntaryPensionSystem Rule 2006] "Participants'InvestmentAccount(PIA)"meanstheinvestmentaccountofthe participantsunderaFamilyTakafulplan; [TakafulRules2005] "Participants'InvestmentFund(PIF)"meansaseparatefundcomprisingofthe underlyingassetsrepresentingtheunitsofthePIAunderaFamilyTakafulplan; [TakafulRules2005] "Participantsmembershipdocuments(PMD)"meansthedocumentsdetailing thebenefitsandobligationsofaparticipant; [TakafulRules2005] "Participants Takaful Fund (PTF)" means a separate risk pool to which the participants' risk related contributions are paid and from which risk related benefitsarepaidout; [TakafulRules2005]

Participating

"Participating" in reference to life insurance business, means contracts of life insurance, other than investmentlinked contracts, health contracts, group life contractsandgrouphealthcontracts,underthetermsandconditionsofwhich the policy holder has an entitlement to participate in distributions by the life insurerofprofitsorsurpluses; Explanation: a benefit paid under a policy is not a distribution of profit or surplus if the benefitisdeterminedaccordingtothetermsandconditionsofthecontractand isnotsubjecttotheexerciseofdiscretionbytheinsurer; [InsuranceOrdinance,2000]

Participatory redeemablecapital

"Participatory redeemable capital" means such redeemable capital as is entitledtoparticipateintheprofitandlossofacompany; [CompaniesOrdinance,1984]

Pensionfund

"Pension fund" means a fund made up of subfunds created from the contributionspaidbytheparticipantsandwouldconsistofalltheassetsforthe timebeingheldordeemedtobeheldbysubfundsandincludesallincomeor investmentreturnsthereonbutexcludesfees,chargesandexpensesrelatedto themanagementoftheinvestmentsofsubfunds; [VoluntaryPensionSystemRules,2006]

Pensionfundmanager

"Pension fund manager" means an asset management company or a life insurancecompanydulyauthorizedbytheCommissiontoefficaciouslymanage thecontributionsmadebyoronbehalfofparticipantsinpensionfundandmeet such other conditions as may be prescribed from time to time by the Commission; [VoluntaryPensionSystemRules,2006]

Permanentcapital fund

"Permanentcapitalfund"meansafundthatisestablishedintherecordsofa lifeinsurancecompanynothavingasharecapital,andwhichcontainsthatpart of the assets and liabilities of a life insurer which is attributed to it and is not attributedtoanystatutoryfundmaintainedbythelifeinsurer; [InsuranceOrdinance,2000]

Person

"Person" includes a Hindu undivided family, a firm, an association or body of individuals, whether incorporated or not, a company and every other artificial juridicalperson; [SecuritiesandExchangeOrdinance1969]

person

"Personisdeemedtobeaconnectedperson"ifsuchperson a. is a company under the same management or group or any subsidiary

company b. isanofficialoramemberofastockexchangeorofaclearing houseof

thatstockexchange,oranyemployeeofamemberofastockexchange; c. is an investment bank, share transfer agent, registrar to an issue,

TrusteeofTermFinanceCertificates,InvestmentAdvisor,InvestmentCompany (closedendmutualfund) oranemployeethereof,or,isamemberoftheBoard ofDirectorsofaninvestmentcompanyoramemberoftheBoardofDirectorsof theAssetManagementofanInvestmentScheme(openendmutualfund)oris anemployeehavingfiduciaryrelationshipwiththecompany; d. isanofficialoranemployeeofaselfregulatoryorganization

recognizedbytheCommission; e. isarelativeofanyoftheaforementionedpersons;orisabankerofthe

company. [ListedCompanies(ProhibitionofInsidersTrading)Guidelines] Personactingin concert "Personactinginconcert"meansapersonwhocooperateswiththeacquirer toacquirevotingsharesorcontrolofthetargetcompany [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002] Policy "Policy"meansacontractofinsurance; [InsuranceOrdinance,2000] Policyholder "Policyholder"meansthepersontowhomapolicyisissuedor,inthecaseofa policy of life insurance, the person to whom the whole of the interest of the policyholderinthepolicyisassignedonceandforall,butdoesnotincludean assignee thereof whose interest in the policy is defeasible or is for the time beingsubjecttoanycondition; [InsuranceOrdinance,2000]

Policyholderliability

"Policyholderliability"inrelationtolifeinsurance,means: a. b. aliabilitythathasarisenunderapolicyoflifeinsurance;or aliabilitythat,subjecttothetermsandconditionsofapolicy,willarise

ontheappendingofanevent,oratatime,specifiedinthepolicy; [InsuranceOrdinance,2000] Prescribed Prescribed "Prescribed"meansprescribedbyrulesmadeunderthisOrdinance; [Listed Companies Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002] "Prescribed"means, a. asrespectstheprovisionsofthisOrdinancerelatingtothewindingupof

companies and other matters requiring to be determined or decided by the Court,prescribedbyrulesmadebytheSupremeCourtinconsultationwiththe HighCourtsor,wheretheSupremeCourtadvisestheFederalGovernmenttodo so,bytheFederalGovernmentinconsultationwiththeHighCourts;and b. asrespecttheotherprovisionsofthisOrdinance,prescribedbyrulesor

regulations made by the Federal Governmentafter previous publication in the officialGazette; [CompaniesOrdinance,1984] Previouscompanies Act "Previous Companies Act" includes any Act or Acts relating to companies in forcebeforetheIndianCompaniesAct,1866(Xof1866),ortheActsrepealed thereby,theIndianCompaniesAct.1866(Xof1866),theIndianCompaniesAct, 1882, (VI of 1882) the Indian Companies Act 1913 (VT1 of 1913), or any law corresponding to any of those Acts and in force in any of the territories now constituting Pakistan before the extension of the Companies Act, 1913 (VII of 1913),tosuchterritories; [CompaniesOrdinance,1984] PrincipalOfficer PrincipalOfficermeansaperson,bywhateverdesignationcalled,appointed by a Takaful operator and charged with the responsibility of managing the affairsoftheTakafuloperator; [TakafulRules2005] PrinciplesofSharia "PrinciplesofSharia"meansthepertinentprinciplesofShariaasinterpretedby theReligiousBoard; [GuidelinesforIssueofCertificatesofMusharakaforModarabas]

Priorcontractual borrowing arrangement

"Prior Contractual Borrowing arrangement" means "shares already borrowed or a contract or agreement to borrow shares needed to make delivery on the settlementdate". [RegulationsforShortSellingunderReadyMarket,2002]

Privatecompany

"Privatecompany"hasthemeaningassignedtoitinclause(28)ofsubsection (1)ofsection2oftheCompaniesOrdinance,1984(XLVIIof1984), [InsuranceOrdinance,2000]

Privatecompany

"Privatecompany"meansacompanywhich,byitsarticles, a. b. restrictstherighttotransferitsshares,ifany; limitsthenumberofitsmemberstofiftynotincludingpersonswhoare

intheemploymentofthecompany;and c. prohibitsanyinvitationtothepublictosubscribefortheshares,ifany,

ordebenturesofthecompanyProvidedthat,wheretwoormorepersonshold one or more shares in a company jointly, they shall, for the purposes of this definition,betreatedasasinglemember; Privatecompany [CompaniesOrdinance,1984] "Private company" means a private company which is not a single member company; [SingleMemberCompaniesRules,2003] Privatemotor propertydamage policy "Private motor property damage policy" means a contract of insurance that providesinsurancecoverinrespectoflossofordamagetoamotorvehicleorof the contents of a motor vehicle used primarily and principally as a means of privatetransportbythepolicyholder,bypersonswithwhomthepolicyholder has a family or personal relationship, or by both the policy holder and such persons, [InsuranceOrdinance,2000] Privatesectorperson "Privatesectorperson"meansapersonwhoisnotintheserviceofPakistanor ofanystatutorybodyoranybodywhichisownedorcontrolledbytheFederal Government or a Provincial Government not including a University or an educationalinstitution; [SecuritiesandExchangeCommissionofPakistanAct,1997]

Promoter

"Promoter"means i ii thepersonorpersonswhoareinoverallcontrolofacompany; the person or persons who are instrumental in the formation of a

companyorthesharesofferingtopublic;or iii the person or persons named in the offer document as directors:

Providedthatadirectororanofficerofacompany,ifheisactingassuchonlyin hisprofessionalcapacity,shallnotbedeemedtobeapromoter; Explanation; Where a promoter of a company is a body corporate; the promotersofthatbodycorporateshallalsobedeemedtobepromotersofthe company. Promoters [PublicCompanies(EmployeesStockOptionScheme)Rules,2001] "Promoters"meanspersonswhoareincontrolofacompanyornamedinany offerdocumentandincludes (a) anyrelativeofapromoter;and

(b)incaseofacompanyorbodycorporate, (i) (ii) asubsidiaryorholdingcompanyofsuchcompanyorbody; anycompanyinwhichthepromoterholdstenpercentormoreofthe

equitycapitalorwhichholdstenpercentormoreoftheequitycapital;or (iii) any company or body corporate wherein a group of individuals or

companiesorbodiescorporateorcombinationsthereofholdstwentypercent ormoreofthecapitalinthetargetcompanyandalsoholdstwentypercentor moreofthecapitalofthepromoter;and (c)incaseofanindividual, (i) anycompanyinwhichtenpercentormoreofthesharecapitalisheld

by the promoter or a relative of the promoter or a firm or Hindu undivided family in which the promoter or his relative is a partner or copartner or a combinationthereof;or (ii) any company in which a company specified in paragraph (i) holds ten

percentormoreofthesharecapital; [Listed Companies (Substantial Acquisition of Voting Shares and Takeover) Ordinance,2002]

Proprietarytrading

"ProprietaryTrading"meanstradingconductedbyabroker,agentoran associatedpersontradingonhisownaccountfordirectgaininsteadof Commission.

Prospectus

[RegulationsforProprietaryTrading,2004] "Prospectus" means any document described or issued as prospectus, and includes any notice, circular, advertisement, or other communication, inviting otters from the pubic for the subscription or purchase or any shares In, or debenturesof,abodycorporate,orinvitingdepositsfromthepublic,otherthan depositsinvitedbyabankingcompanyorafinancialinstitutionapprovedbythe FederalGovernment,whetherdescribedasprospectusorotherwise; [CompaniesOrdinance,1984]

Provisionallylisted companies Publicannouncement

"ProvisionallyListedCompanies"means"Companiesprovisionallylistedunder these Regulations on the Exchange" [Regulations for Futures Trading in ProvisionallyListedCompanies(FTPLC),2002] "Public announcement" means public announcement of offer or intention to be made wider section 5, section 6 or section 8, as the case may be, and includes any announcement of any competitive bid for acquisition of voting sharesofatargetcompany; [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers)

Publiccompany

Ordinance,2002] "Publiccompany"hasthemeaningassignedtothatexpressioninclause(30)of subsection(1)ofsection2oftheCompaniesOrdinance,1984(XIVIIof1984), or an existing company which is not a private company or a subsidiary of a privatecompany; [InsuranceOrdinance,2000]

Publiccompany Publicoffer

"Publiccompany"meansacompanywhichisnotaprivatecompany. [CompaniesOrdinance,1984] "Publicoffer"meansthepublicofferforacquisitionofvotingsharesofatarget companyandincludesanycompetitivebidorbidsmadeforthispurpose. [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002]

Purchase

"Purchase" means purchase by the companies of their own shares. [Companies(BuybackofShares)Roles.1999]

ReadilyRealizableAssetsReadily Realizable Assets include Liquid Assets and stocks pledged with the NonBanking and Finance Companies s and are in their possession, with perfectedliendulysupportedwithcompletedocumentation; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008] Record "Record"includes,inadditiontoarecordinwriting, a.anyphotograph; b.anydisc,tape,soundtrackorotherdeviceinwhichsoundsorotherdata (notbeingvisualimages)areembodiedsoastobecapable(withorwithoutthe aid of some other instrument or machine) of being reproduced there from in audibleorreadableform;and c.anyfilm,tapeorotherdeviceinwhichvisualimagesareembodiedsoastobe capable(withorwithouttheaidofsomeotherinstrument)ofbeingreproduced therefrominvisualform;and d.anyreferencetoacopyofarecordincludes; I. in the case of arecord fallingwithin paragraph (b)butnotparagraph(c)of thisclause,atranscriptofthesoundsorotherdataembodiedtherein II. in the case of a record falling within paragraph (c) but not paragraph (b) of this clause, a still reproduction of the images embodied therein, whether enlargedornot;and III.inthecaseofarecordfallingwithinbothparagraph(b)andparagraph(c)of this clause, the transcript of the sounds or other data embodied therein togetherwiththestillreproductionoftheimagesembodiedtherein; [CentralDepositoryAct,1997] Records Records include ledgers, day books cash books and all other manuals or magneticrecordsusedinthebusinessofaPensionFundManager; [VoluntaryPensionSystemRules,2005]

Redeemablecapital

"Redeemableablecapital" includes finance obtained on the basis of participation terms certificate (PTC), musharika certificate, terms finance certificate(TFC),oranyothersecurityorobligationnotbasedoninterest,other than an ordinary share of a company, representing an instrument or a certificate of specified denomination, called the face value or nominal value, evidencinginvestmentoftheholderinthecapitalofthecompanyontermsand conditions of the agreement for the issue of such instrument or certificate or such other certificate or instrument as the Federal Government may, by notificationintheofficialGazette,specifyforthepurpose; [CompaniesOrdinance,1984],

Registerconcerned

Registrarconcernedmeanstheregistrarinchargeoftheregistrationofficein which the company is registered or in whose territorial jurisdiction the registered office, or, where a company is to be registered, the proposed registeredoffice,issituate; [Companies(GeneralProvisionsandForms)Rules,1985]

Registerconcerned

"Registrar concerned" means additional registrar, joint registrar, deputy registrarorassistantregistrarwhoisinchargeofaCompanyRegistrationOffice inwhichacompanyisregisteredorinwhoseterritorialjurisdictionitsregistered officeissituated; [Company(Registrationoffices)Regulations,2003]

Registerdebenture holders

"Register of debentureholders" means the register of debenture holders referred to in section 149 of the Companies Ordinance, 1984 (XLVII of 1984), and includes the register of holders of any nonequity securities of an issuer otherthanacompany; [CentralDepositoryAct,1997]

Registerofmembers

"Register of members" means the register of members referred to in section 147oftheCompaniesOrdinance,1984(XLVIIof1984),andincludestheregister ofownersofanyequitysecuritiesofanissuerestablishedunderanyotherlaw; [CentralDepositoryAct,1997]

Registeredfirm

"Registeredfirm"meansfirmregisteredunderthePartnershipAct,1932(IXof 1932),allthepartnersofwhichareadvocates. [Companies(AppointmentofLegalAdvisers)Act,1974]

Registrar

"Registrar" means a registrar, an additional registrar, a j joint registrar, a deputy registrar or anassistant registrar, performing under this Ordinance the dutyofregistrationofcompanies;

Registrar

[CompaniesOrdinance,1984] "Registrar" means an officer of the Commission who is appointed as the Registrar of the Appellate Bench and for the purpose of these rules shall also include a Deputy Registrar performing functions of the Registrar under these rules [Securities and Exchange Commission of Pakistan(Appellate Bench Procedure) Rules,2003]

Registrarof companies Regulations reinsurance

"Registrar of companies" means the Registrar posted at headquarters of the Commissionandincludesanadditionalregistrar; [Company(RegistrationOffices)Regulations,2003] "Regulations" means the regulations made by the Board or the Commission; [SecuritiesandExchangeCommissionofPakistanAct,1997] "Reinsurance"meansacontractofinsuranceunderwhichtheevent,specified inthecontract,contingentuponthehappeningofwhich,paymentispromised tobemadetothepolicyholderthereunder,ispaymentbythepolicyholderof a claim or claims made against that policy holder under another contract or contractsofinsuranceissuedbythatpolicyholder;

Relative ReligiousBoard Rental

[InsuranceOrdinance,2000] "Relative"meansspouse,linealascendantsanddescendents [Listed Companies (Substantial Acquisition of Voting Shares and Take overs)Ordinance,2002] "Religiousboard"meanstheBoardconstitutedundersection9; [ModarabaCompanies,andModarabaRules,1981] Rental include lease Rentals, Rentals in respect of housing finance facilities, hire purchase installments or any other amount received by NonBanking and FinanceCompaniesfromBorroweragainstthegrantofaFacility; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

RepealedAct

"RepealedAct"meanstheInsuranceAct,1938(IVof1938);[10,2000]

Responsibleofficer

"Responsibleofficer"inrelationtoacompany,means, a. b. c. d. thechiefexecutiveofthecompany; adirectorofthecompany; thesecretaryofthecompany; anyotherofficerofthecompanywhoisdeclaredbytheCommissionin

writingasaresponsibleofficerofthecompanyforthepurposesoftheserules; e. inthecaseofacompanyinrelationtowhichanadministratorhasbeen

appointed under subsection (1) of section 295, the administrator of such company f. inthecaseofacompanyinliquidation,theliquidatorofsuchcompany.

[Companies(GeneralProvisionsandForms)Rules,1985] ReTakaful ReTakaful means an arrangement consistent with sound Takaful principles forreTakafulofliabilitiesinrespectofrisksacceptedortobeacceptedbythe TakafuloperatorinthecourseofhiscarryingonTakafulbusinessandincludes ccedingrisksfromTakafulpool(s)managedbytheTakafuloperator(s)tooneor morereTakafulpool(s)managedbyanyotheroneormoreTakafuloperator(s) inlinewithTakafulprinciples; [TakafulRules2005] Retrocession "Retrocession" means a contract of reinsurance under which the event, specifiedinthecontract,contingentuponthehappeningofwhich,paymentis promisedtobemadetothepolicyholderthereunder,ispaymentbythepolicy holder of a claim or claims made under another contract or contracts of reinsuranceissuedbythatpolicyholder;[10,2000] Riskassets "Risk assets" mean marketable securities and other assets held by a Non BankingandFinanceCompaniesintheordinarycourseofitsbusiness; [NonBankingandFinanceCompaniesRules,2003] Rules "Rules"meanstherulesmadebytheFederalGovernment. [SecuritiesandExchangeCommissionofPakistanAct1997]

Salewithpreexisting interest

"Salewithpreexistinginterest"means: The squaring up of an earlier purchase on the same exchange in the same settlement. Thesquaringupofanearlierpurchaseonthesameexchangeinadifferent settlementwhichwillsettlepriortothesettlementofthesale. The squaring up of an earlier purchase on another exchange in a different settlementwhichwillsettlepriortothesettlementofthesale. The squaring up of an earlier purchase on another exchange in the same settlement". [RegulationsforShortSellingunderReadyMarket,2002]

Scheduledbank

"Scheduledbank" hasthemeaningassignedtoitinclause(m)ofsection2of the; [StateBankofPakistanAct,1956(XXXIIIof1956);(10,2000)]

Scheme Scheme

"Scheme" means the Employees Stock Option Scheme approved by the Commissionandintroducedundertheserules; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001] "Scheme"meansaunittrustschemeconstitutedbywayofatrustdecdwhich continuouslyoffersforsaleasecuritywhichentitlestheholderofsuchsecurity ondemandtoreceivehisproportionateshareofthenetassetsofthesecurity [AssetManagementCompaniesRules,1995]

Securities and Exchange"Securities and Exchange Commission of Pakistan Act" means the Securities Commission of PakistanandExchangeCommissionofPakistanAct,1997(XLIIof1997);[IO,2000] ACT Secretary "Secretary" means any individual appointed to perform the secretarial, administrative or other duties ordinarily performed by the secretary of a company; [CompaniesOrdinance,1984]

Secured

SecuredmeansExposurebackedbyTangibleSecurityandanyOtherFormof Securitywithappropriatemargins(incaseswheremarginhasbeenspecifiedby the Commission appropriate margin shall at least be equal to the specified margin); [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Securitization

"Securitization" means a process whereby any Special Purpose Vehicle raises funds by issue of Term Finance Certificates or any other instruments with the approval of the Commission, for such purpose and uses such funds by making paymenttotheOriginatorandthroughsuchprocessacquiresthetitle,property or right in the receivables or other assets in the form of actionable claims; [Companies(AssetBackedSecuritization)Rules,1999]

Security

"Security"means a. a security as defined in subclause (i) of clause (1) of section 2 of the

SecuritiesandExchangeOrdinance,1969(XVIIof1969) b. c. d. anyGovernmentsecurity; anyderivativerelatingtoasecurityoraGovernmentsecurity;or any other instrument specified by the Federal Government, by a

notificationintheofficialgazette,tobeasecurityforthepurposesofthisAct; [CentralDepositoryAct,1997] Security "Security" means any share, scrip, debenture, participation term certificate, modarabacertificate,musharikacertificate,termfinancecertificatebond,pre organization certificate or such other instrument as the federal Government may,bynotificationintheofficialGazette,specifyforthepurpose; [CompaniesOrdinance,1984] Share "Share"meansshareinthesharecapitalofacompany; [CompaniesOrdinance,1984] Share "Share" means equity shares and securities convertible into equity shares and shall include American Depository Receipts (ADRs), Global Depository Receipts (GDRs) or other depository receipts representing underlying equity shares or securitiesconvertibleintoequityshares; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Shareholders

"Shareholders fund" means a fund that is established in the records of a life insurancecompanyandwhichcontainsthatpartoftheassetsandliabilitiesofa lifeinsurerwhichisattributedtoitandisnotattributedtoanystatutoryfund maintainedbythatlifeinsurer;[10,2000]

ShariahBoard

ShariahBoard meansaShariahBoardconstitutedbyaTakafuloperatorforits Takafulbusinessunderrule34; [TakafulRules2005]

Shariahcompliant investments

Shariah compliant investments means investment that adhere to principles and injunctions of Islam as laid down in Shariah (i.e., the Quran, Sunnah, Ijma andQiya)andestablishedbypracticeandusageandasapprovedbytheShariah BoardoftheTakafuloperator; [TakafulRules2005]

ShelfRegistration

"Shelf Registration" means the sanctioned amount of TFCs to be issued in tranchesoveraperiodoftimeasspecifiedintheProspectus. [GuidelinesfortheIssueofTermFinanceCertificates(TFCs)toGeneralPublic]

Shortsale

"Shortsale"means"asalebyapartythatdoesnotownsharesorthesaledoes notconstituteasalewithpreexistinginterestbutisasalebyapartythathas entered into a contractual borrowing arrangement to meet delivery requirements". [RegulationsforShortSellingunderReadyMarket,2002]

ShortTermFacilities

ShortTermFacilitiesmeanaFacilitywithmaturitiesuptooneyear; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Singlemember company Smallentrepreneurs

"Single member company" or "Single Member Companies" means a private companywhichhasonlyonemember; [SingleMemberCompaniesRules,2003] "Smallentrepreneurs"meanindividuals,firmsandcompanieshaving fixed assets excluding land and building the value of which is not more than twenty million rupees and includes software exporters, software houses and informationtechnologycompanies; [NonBankingandFinanceCompaniesRules,2003]

Soledirector

"Soledirector"meansthedirectorofasinglemembercompanywhoisforthe timebeingtheonlydirector. [SingleMemberCompaniesrules,2003]

Specialpurpose vehicle Specialresolution

"SpecialPurposeVehicle"meansaspecialpurposevehicleregisteredby theCommissionforthepurposeofSecuritization; [Companies(AssetBackedSecuritization)Rules,1999] "Specialresolution" meansaresolutionwhichhasbeenpassedbyamajorityof notlessthanthreefourthsofsuchmembersentitledtovoteasarepresentin personorbyproxyatageneralmeetingofwhichnotlessthantwentyonedays noticespecifyingtheintentiontoproposetheresolutionasaspecialresolution hasbeendulygiven: Provided that, if all the members entitled to attend and vote at any such meeting so agree, a resolution may be proposed and passed as a special resolutionatameetingofwhichnotlessthentwentyonedaysnoticehasbeen given; [CompaniesOrdinance,1984]

Specialtermsorders Sponsoringmember

"Specialtermsorders"meansanorderwhichhasspecialconditionsfortrading. [KarachiAutomatedTradingSystemRegulations] "Sponsoringmember"means"aCorporateBrokerageHouseofthe ExchangeoraCommercialBankoranInvestmentBankoraDiscountHouseor anyotherfinancialinstitutionapprovedbytheExchangewhichisappointedby the companies seeking listing on the Exchange under these regulations and to performfunctionsasprovidedundertheseregulations".

Spread StateBank

[TheRegulationsGoverningOverTheCounter(OTC)Market] "Spread"means"thedifferencebetweentheBidPriceandOfferPrice". [TheRegulationsGoverningOverTheCounter(OTC)Market] "StateBank"meanstheStateBankofPakistanestablishedundertheStateBank ofPakistanAct,1956(XXXIIIof1956); [CentralDepositoryAct,97]

StateLifeInsurance Corporation StatutoryFund

"State Life Insurance Corporation" means the corporation established under Article11oftheLifeInsurance(Nationalization)Order,1972(P.O.10of1972); [10,2000] "Statutoryfund"means afundthatisestablishedintherecordsofalifeinsurer and whichrelates solely to the life insurance business of that life insurer, or a particularpartofthatlifeinsurancebusiness.[10,2000]

Stockexchange

"Stockexchange"meansanypersonwhomaintainsorprovidesamarketplace orfacilitiesforbringingtogetherbuyersandsellersofsecuritiesorforotherwise performing with respect to securities the functions commonly performed by a StockExchange,asthattermisgenerallyunderstood,andincludessuchmarket placeandfacilities;

Subaccount

[SecuritiesandExchangeOrdinance,1969] "Subaccount" means a subaccount maintained, as part of the account of a participant, in accordance with the regulations by a central depository in the nameofsubaccountholdersoastorecordanybookentrysecuritiesenteredin suchsubaccount; [CentralDepositoryAct,1997]

Subaccountholder

"Subaccountholder"meansapersoninwhosenameasubaccountisopened and maintained by a participant with a central depository and is operated by thatparticipant. [CentralDepositoryAct,1997]

SubordinatedLoan

SubordinatedLoanmeansanunsecuredloanextendedbythesponsorstothe Borrower which is subordinate to the claim of an NonBanking and Finance Companies taking Exposure on the Borrower and documented by a formal subordinationagreementbetweentheprovideroftheloanandtheBorrower; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

SubsidiaryCompany

"Subsidiarycompany" or"subsidiary"meansasubsidiarycompanyasdefinedin section3; [CompaniesOrdinance,1984]

Subunderwriter

"Subunderwriter"meansapersonwhohasmadeacontractwithan underwritertotakeupapartofthesecuritiesnotfullysubscribedbythepublic issue;

Supplementtothe prospectus Surveyor

[SecuritiesandExchangeOrdinance1969] "Supplementtotheprospectus" meansanupdatedcondensedformofthefull prospectus for inviting public subscription through subsequent tranche(s). [GuidelinesfortheissueofTermFinanceCertificates(TFCs)toGeneralPublic] "Surveyor" means a person (by whatever name called) who examines the goods,propertyoranyinterestsinsuredunderacontractofnonlifeinsurance toexpressanindependentopinionastothecause,extent,locationandamount ofanylossincurredorclaimedtobeincurredunderthatcontract;[10,2000]

TFC

TFCmeansdebtinstrumentissuedforthepurposeofraisingfundsintheform ofredeemablecapital; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Takafulbenefit

Takaful benefit includes any benefit, whether pecuniary or not, which is securedbyaTakafulpolicy,andtheword"pay"andotherexpressions,where usedinrelationtoTakafulbenefit,shallbeconstruedaccordingly; [TakafulRules2005]

Takafulbroker

"Takaful broker" means a person who is permitted by the Securities and exchangeCommissiontocarryonTakafulbusinessasTakafulbroker;

Takafulbusiness

[TakafulRules2005] Takaful business means business of Takaful whose aims and operations do notinvolveanyelementwhichisnotinconsonancewiththeinjunctionofIslam aslaiddownintheShariah;

Takafuloperator

[TakafulRules2005] Takaful operator means a person who is permitted by the Securities and ExchangeCommissiontocarryonTakafulbusinessasTakafuloperator;

Takafulpolicy

[TakafulRules2005] TakafulpolicyincludesanycontractofTakafulforFamilyTakafulbusiness or General Takaful business whether or not embodied in or evidenced by an instrumentintheformofaparticipants'membershipdocument,andreferences toissuingapolicyshallbeconstruedaccordingly; [TakafulRules2005]

TangibleSecurity

Tangible Security means Readily Realizable Assets, mortgage of land, plant, building,machineryandanyotherfixedassets;

Targetcompany

[NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008] "Targetcompany"meansalistedcompanywhosevotingsharesorcontrolare directlyorindirectlyacquiredorintendedtobeacquired. [Listed Companies (Substantial Acquisition of Voting Shares and Take overs)Ordinance,2002]

TermFinance Certificate TotalFund

"Term finance certificate" means a debt instrument issued for the purpose to raisefundintheformofredeemablecapital. [GuidelinesfortheissueofTermFinanceCertificates(TFCs)toGeneralPublic] TotalfundmeanstheaggregateofContributionsfundandModarabaFundas definedin(c)and(e)above. [GuidelinesfortheissueofCertificatesofMusharakaforModarabas]

Trader

"Trader"meansanemployeeofamemberwhoisauthorizedbysuchmember toexecutetradeoftheinvestorsthroughtheautomatedtradingsysteminsuch exchange.

Tranche

[MembersAgentsandTraders(EligibilityStandards)Rules,2001] "Tranche"meansanofferofacertainportionoutofthetotalamountofTFCs approvedbytheCommission. [GuidelinesfortheissueofTermFinanceCertificates(TFCs)toGeneralPublic]

Transferagent

"Transfer agent" means a person appointed by the issuer to assist in the maintenance of record for issuance and transfer of securities and to perform functionsofpersonscommonlyknownasRegistrar;

Trust

[SecuritiesandExchange Ordinance1969] "Trust"meansatrustestablishedbyadeedundertheprovisionsoftheTrusts Act,1882(IIof1882); [VoluntaryPensionSystemRules,2006]

Trustee

"Trustee"meansafinancialinstitutionoracentraldepositoryhavinglegaltitle to securities, and holding such securities in trust for the benefit of another personorentityandowesafiduciarydutytothatbeneficiary. [MarginTradingRules,2004]

Trustee

"Trustee"meansacompanyappointedasatrusteeandincludesabank licensedundertheBankingCompaniesOrdinance,1962(LVIIof1962)oratrust company which is a subsidiary of such a bank or a banking institution incorporated outside Pakistan acceptable to the Commission or a central depositorycompanyapprovedbytheCommissionoraNonBankingandFinance Companies carrying out investment finance services provided it has been approvedbytheCommissiontoactastrustee; [NonBankingandFinanceCompaniesRules,2003]

Underwriter

"Underwriter" includes a person who has made a contract with an issuer to subscribeandpayincashforthosesecuritiesasarenotfullysubscribedbythe publicissueorapersonwhohasinitiallyboughtthesecuritiesfromanissuerfor thepurposeofsellingsuchsecuritiesbymeansofapublicoffer; [SecuritiesandExchangeOrdinance1969]

Underwriting Commitments

Underwriting Commitments mean commitments given by NonBanking and Finance Companies s to the limited companies at the time of new issue of equity or debt instrument, that in case the proposed issue of equity or debt instrumentisnotfullysubscribed,theunsubscribedportionwillbetakenupby them(NonBankingandFinanceCompanies); [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

Unit UnlistedDebtSecurity

"Unit"meansanundividedshareinasubfundofthepensionfund [VoluntaryPensionSystemRules,2006] UnlistedDebtSecurity meansadebtsecuritynotlistedorquotedonastock exchange; [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008]

UnlistedEquitySecurity Unlisted Equity Security means an equity security not listed or quoted on a stockexchange. [NonBankingandFinanceCompaniesandNotifiedEntitiesRegulations,2008] Unlistedsecurity "Unlistedsecurity"meansasecuritynotlistedorquotedonastockexchange. [VoluntaryPensionSystemRules,2006] Unpublishedprice sensitiveinformation "Unpublishedpricesensitiveinformation" inrelationtoalistedsecuritymeans anyinformationwhichrelatestothefollowingmattersorisofconcern,directly or indirectly, to a company, and is not generally known or publishes by such companyforgeneral, information,butwhichifpublishedorknown,islikelyto materiallyaffecttheprice,ofsecuritiesofthatcompanyinthemarket: a. financialresults(bothhalfyearlyandannual)ofthecompany;

b.intendeddeclarationofdividends(bothinterimandfinal) c. d. e. f. g. h. issueofsharesbywayofrights,bonus,etc.; anymajorexpansionplansorexecutionofnewprojects amalgamation,mergersandtakeovers; disposalofthewholeorsubstantiallythewholeoftheundertaking; suchotherinformationasmayaffecttheearningsofthecompany;and anychangesinpolicies,plansoroperationsofthecompany.

[ListedCompanies(ProhibitionofinsidersTrading)Guidelines]

Uptick

"Uptick"isthepricewhichisabovethenextprecedingdifferentpriceatwhicha tradeofsuchsecuritywasaffectedonsuchExchange. [RegulationsforShortSellingunderReadyMarket,2002]

Venturecapital company

"Venturecapitalcompany"includesacompanywhichisengaged principally in financing through direct equity investment in another company andprovidesmanagerialexpertisethereto; [SecuritiesandExchangeOrdinance1969]

Venturecapital company

"Venture capital company" means a company licensed by the Commission to invest in venture projects through equity or other instruments whether convertibleintoequityornotandprovidesmanagerialortechnicalexpertiseto venture projects, or acts as a management company for management of venturecapitalfund; [NonBankingandFinanceCompaniesRules,2003]

VentureCapital company

"Venturecapitalcompany"meansacompanywhichisengagedinfinancingany venture project, through equity or other instruments whether convertible into equityornotandprovidesmanagerialortechnicalexpertisetoventureprojects, or acts as a management company for management of venture capital fund [VentureCapitalCompaniesandVentureCapitalFundsRules,2001]

Venturecapitalfund Venturecapitalfund

"Venturecapitalfund"meansafundlicensedunderrule26; [NonBankingandFinanceCompaniesRules,2003] "Venturecapitalfund"meansacompanywhichismanagedbyaventurecapital company and raises funds through private placement of equity and other securities, as specified in these rules and invests its resources in venture projects [FeatureCapitalCompaniesandVentureCapitalFundRules,2001]

Venturecapital investment

"Venturecapitalinvestment"meansfinancingofanyventureprojectbyaNon Banking and Finance Companies licensed to operate as a venture capital companyorbyaventurecapitalfundbeingmanagedbysuchNonBankingand Finance Companies, through equity or other instruments whether convertible intoequityornot. [NonBankingandFinanceCompaniesRules,2003]

Ventureproject

"Ventureproject"meansaprojectwhichisinthestartupphaseofitsbusiness or commercial operations or undergoing expansion or engaged in a service, manufacturing or production activity based on a new process, service or technologyorlocatedinaremoteorunderdevelopedareaofthecountryandis financed by a venture capital fund or a NonBanking and Finance Companies licensedasventurecapitalcompanyandincludesawhollyownedsubsidiaryof the NonBanking and Finance Companies provided it invests in the projects havingtheabovesaidcharacteristics. Provided that the shares of venture project shall not be listed on any of the stock exchanges in Pakistan at the time of investment by the venture capital companyorventurecapitalfundandtheprojectshallnotengageinanyofthe followingbusinessactivity,namely: a. b. c. d. e. f. g. h. i. armsandammunitions; highexplosives; radioactivesubstances; securityprinting,currencyandmint manufactureofalcoholicbeverages; environmentallyhazardousprojects; goldfinancing; realestate;or nonbankingfinancecompanies

[NonBankingandFinanceCompaniesRules,2003] Ventureproject "Venture project" means a company, registered under the Companies Ordinance. 1984 (XLVIl of 1984), or a partnership, or a sole proprietorships which is engaged in a business activity and has such characteristics as may be notified by the Commission, from time to time, to be treated as venture projects. [VentureCapitalCompaniesandVentureCapitalFundsRaffles.2001] Vesting Vestingperiod Vestingmeansexerciseofrighttoapplyforsharesofacompany; [PublicCompanies(EmployeesStockOptionScheme)Rules,2001] "Vesting period" means the period during which the vesting of an option grantedtoanemployeeinpursuanceofaSchemetakesplace. [PublicCompanies(EmployeesStockOptionScheme)Rules,2001]

Votingshares

"Votingshares"meanthesharesinthesharecapitalofalistedcompanyhaving votingrights; [Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance,2002]

Wakalabased contract WindowTakaful operator

Wakala based contract means a Takaful contract based on the principle of Wakala; [TakafulRules2005] Window Takaful Operator means a life insurer registered under the Ordinance and carrying out the business of Family Takaful under window operations within its corporate structure, and follows the rules applicable to otherTakafuloperators. [TakafulRules2005]

Workingcapitallimit

"Workingcapitallimit"meanstheaggregatefundbasedlimitsincludingthose by way of purchase/discount of bills sanctioned by one or more financial institutionstoacompanyformeetingitsworkingcapitalrequirements,andalso includesanyworkingcapitaltermfinancelimits. [GuidelinesfortheissueofCommercialPaper]