NBP-Fund using ‘NBP’s Wheel Logo’ without registering with IPO-Pakistan

FIA is investigating this case. SECP, NBP-Fund so far failed to prove it, IPO-Pakistan confirmed NBP-Fund  application is pending,

KARACHI: Pakistan’s biggest Mutual Fund ‘NBP-Funds’, which is one of subsidiary of the National Bank of Pakistan (NBP) in Mutual Fund Industry, is using Logo of NBP without registering from the Intellectual Property Organization – Pakistan (IPO-Pakistan) nor it’s using an approved name.

According to the documents, the name of NBP-Fund has not been approved and it is still pending in (Trademark) IPO-Pakistan.

However, the Copyright department of Intellect Property of Pakistan has claimed in a letter that National Bank has applied the name of NBP-Aitemaad, which was approved and registered by it only for National Bank of Pakistan. 

The National Bank of Pakistan had only registered itself with a separate Logo of ‘NBP Aitemaad’ with the Copyright department of Intellect Property of Pakistan, but in contrary to it the company NBP Fund Management Limited is using the name of NBP-Funds to deceive to investors, documents available with Treasure Magazine said.

In April 2018, NBP Fullerton Asset Management Limited has been renamed as NBP-Fund Management Limited as the country’s only National Bank ‘NBP’ made around 54 per cent investment, while a foreign investor Baltoro Growth Fund has made 36 per cent and Dr Amjad Waheed CEO of the Fund has just only 10 per cent. Despite the lowest shareholding Dr Amjad Waheed is the head of this Fund for last several years without any approval of NBP’s Board of Directors, the sources claimed.

At that time, Saeed Ahmed was the President of the National Bank of Pakistan (NBP) who was the main player of Prime Minister Nawaz Sharif at that time. According to the inside source, “NBP-Fund has been created during a short period of Saeed Ahmed’s service.” 

Since adopting new and recently attained name “NBP-Funds” by the company NBP Fund Management Limited, it became an attraction among common investors leading to deception that the Fund is part of National Bank of Pakistan not only by its resemblance in name and logo but otherwise too. The company being linked to National Bank of Pakistan is not approved having such permission to apply this name and logo as acclaimed by company. Somehow NBP-Funds could not justify it that it is using this Logo legally and with the approval of the National Bank of Pakistan and related concerned authorities.

The Securities and Exchange Commission of Pakistan (SECP) is still confused over it and despite several queries, it did not reply to the questions raised by the investor and the media, while it said, “NBP-Fund is registered as a separate unlisted public limited company with the name of ‘NBP Fund Management Limited’. It is a mutual fund and said to be a subsidiary of the National Bank of Pakistan.”

The company is using the name NBP-Fund and same Wheel Logo of NBP illegally in contrast to Companies Act 2017 under which it is regulated by SECP .The act says “that no company shall be registered by a name identical with or resemble or similar to the name of a company”.

According to the documents, the company is registered as NBP Fund Management Limited with SECP but using the words NBP-Fund as name and Wheel logo is publically used by the company which is unauthorized. Neither NBP Funds nor any other logo like NBP-Funds Aitemaad as claimed by the company NBP Fund Management Limited is not yet approved. Using the name NBP Funds by the company is widely creating mistrust over the leading handle National Bank of Pakistan for the future investors from all walks of life.

NBP is considered the most trusted bank of the country after State Bank of Pakistan and deals in government’s expenditures etc.

An investor of the Fund said “as a professional doctor, I have a lot of trust on NBP, the Logo on the form has deceived me and I have invested my whole hard-earn money in this Fund, but unfortunately, I lost major amount of my total investment because of unprofessional attitude of mutual fund officials who are blaming Pakistan Stock Market for all these losses and not their own reckless decisions over my investments for which they are not taking any responsibility.” “The company is blaming me here and blaming Pakistan Stock Exchange there but keeping itself safe from any acquisition. If such reliable bank can allow its subsidiary to practice its own set of rules then how can we ever trust Government owned bank after such revelation!” Since that she is following her case in SECP tribunal,” she further said.

All the government machineries, including SECP and the management of Pakistan Stock Exchange (PSX), are striving hard to enhance the investors at PSX, but on the other side such big mutual funds of the state treasury are unable to protect the interest of investors, she claimed.

“This Fund is earning for itself from small investor’s money, but not for the small investors,” she insisted.

NBP-Funds since its establishment had changed its names multiple time finally leading to this particular name and logo which attracted investors .It has expanded many folds in its own income but it did pay proper profit on investments to its small investors who trusted them with their earnings .There is no science needed to understand if company grew its assets but their investors got deprived of their money .It’s simple to understand.

The case is reported in Ministry of Finance, State Bank of Pakistan, National Bank of Pakistan and Security and Exchange Commission of Pakistan to know what lacunas where left unattended to give permission to such company where transparency in its practices is questionable and is not in accordance with the investor’s investment interest.

The Corporate Crime Circle of the Federal Investigation Agency (FIA) is underway investigating NBP Fund Management Limited for the last ten months over fraudulent, negligent mishandling of Investments and levying of unfair charges.

The Magazine try to approach State Bank of Pakistan, SECP, and officials of NBP several times over this issue but they did not respond on our questions.

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