“Charge Creation”

Presented By:

Asif Raza

Fakhar Hassan

Nazia Hassan Khan

Aisha Khursheed

What actually CHARGE is..?

“Charge is security for the payment of a debt that does not pass ‘Title of property’ to whom the charge is given..”

Why Charge is Created…?

• Registered companies sometimes create a charge that is registered to the registrar of companies to secure bank’s loan against default.

Procedure of Charge Creation

• Customer goes to the Bank..• Approval of loan..• Then here begins the role of SECP….• SECP asks to fill FORM-10 containing

particulars of charge..• Affidavit to ensure the validity of

instruments (MODTD)• Bank Challan of Rs.5000/ registration fee.

Certificate of Charge..

• Filling of Form-10 reveals that this loan has been recorded at this date…

• Habib Bank corporate branch deals it

Modification of Charge

• Modification is change in Mortgage.

Change in..

• Amount of charge

• Particulars of property

• Variation in Rate of markup

• Extension of time

• Other terms and conditions

Documents required for modification

• Form 16,containing modification in charge

• Certified copy of instrument

• Affidavit that the copies of instrument are true

• Bank Challan of Rs.5000/ filing fee

Acknowledgment of filing

• Company informs the registrar that charge has been paid off

• NOC is obtained from the MORTGAGEE regarding the payment of charge

Continued….

• Company informs the registrar that property has been released or the property no longer belongs to the company

• Company files a memorandum of satisfaction on form 17 along with the payment of Rs.5000/ filing fee

Some queries regarding process..

• TIME taken by SECP to create charge..? Usually one day but not more than 21 days

• What is the least value for the creation of charge..?

SECP has no concern with it. It is as per banks policy

SECP Multan..

• Office located on Abdali Road Multan

• Catering 1856 companies,

• 40 listed companies

• 45unlisted companies

• 3 foreign companies

• 6 SMC( single member companies )

Person we Met

• Mr. Muhammad Azam

Executive Officer