ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) conducted a consultative roundtable to seek feedback on Draft Employees Provident Fund (Investment in Listed Securities) Rules, 2016 (Rules) from market participants. The said rules are aimed at regulating the investment made from the employees’ provident fund by companies/institutions and important to safeguard the employee’s savings. A large number of stakeholders from corporate sector, professional associations, and members of bar associations attended the roundtable. Roundtable was chaired by Tahir Mahmood, Commissioner (Company Law Division) of SECP. Mahmood presented an overview of regulatory regime of SECP and highlighted importance of consultative process beneficial for development of regulatory framework. The Companies Ordinance, 1984 prescribes requirement regarding investment of provident funds maintained by the companies. Owing to market dynamics and in order to encourage provident funds to make investments in listed securities in order to earn better returns, Employees Provident Fund (Investment in Listed Securities) Rules, 1996 were introduced back in 1996. With continuous innovation in equity markets and development of new products introduced by Non-Banking Finance Companies for better returns, Provident Funds have better choice now available in market. As risk and return go together, therefore, in order to protect savings of employees of the companies, SECP has drafted new rules for the purpose. During the consultative session participants discussed issues about risk management practices for investments in equity securities, low returns on bank savings and government securities, limits to be prescribed in the Rules and role of trustees of the Provident Funds. Valuable feedback of the participants shall be taken care of while finalising the proposed Rules.