Final of Secp

8/8/2019 Final of Secp

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SECURITIES ANDEXCHANGECOMMISSION OFPAKISTAN

The Securities and Exchange Commission ofPakistan (SECP) is a government agencywhose purpose is to develop a modern andefficient corporate sector and a capitalmarket based on sound regulatoryprinciples, in order to foster economicgrowth and prosperity in Pakistan

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Industry Government Administration

Type Government AgencyStatus Operating

CompanySize

2,000 employees

Website http://www.secp.gov.pk
http://www.linkedin.com/companyDir?searchByInd=&ind=75&degDist=net&trk=copro_industryhttp://www.linkedin.com/redirect?url=http%3A%2F%2Fwww.secp.gov.pk&urlhash=lU6rhttp://www.linkedin.com/companyDir?searchByInd=&ind=75&degDist=net&trk=copro_industryhttp://www.linkedin.com/redirect?url=http%3A%2F%2Fwww.secp.gov.pk&urlhash=lU6r


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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

A BRIEF DESCRIPTION ABOUT THE

REGULATORY AUTHORITYOF CAPITAL MARKETIN PAKISTAN

SUBMITTED TO SUBMITTED BY

MAAM SADIA _________ ROSHAN AISHA

BS 2007

Dated: 18 august 2010

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ACKNOWLEDGEMENTS

I wish to express my thanks to Al-Mighty Allah firstly with whose

blessings I have become capable enough to gain knowledge

Secondly my ParentsThey have always been so supportive and

encouraged me to follow the practices made in my educational

institutions

In fine, I offer my heartiest gratitude to my teacher whose welcoming

attitude made me learn more

This report contains all the contents that were important to make a

comprehensive report...

Online encyclopedia which I refer to is

www.seco.gov.pk


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CONTENTS

Acknowledgements pg#3

Preamble pg#5

Vision statement pg#5

Mission statement pg#5

Strategy pg#5

Organization of the commission pg#6

Area of work pg#7

Structure of the commission pg#7

Services rendered by SECP pg#8

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PREAMBLE

The Securities and Exchange Commission of Pakistan is regulated under the act ofSecurities and Exchange Commission of Pakistan, 1997. This act provides policies

pertaining to all issues necessary for the regulation of SECP.

It starts working in 1999. Earlier its area of operation includes only corporate sector and

capital market. Later it widened to the administration and regulation of insurance

companies, non-banking finance companies and private pensions. Its scope of services

also includes supervision of various peripheral service providers to the corporate and

financial sectors, together with chartered accountants, credit rating agencies, corporate

secretaries, brokers, surveyors etc. The contractual obligation for the SECP has greater

than before because of diverse authorization.

VISION STATEMENT

The development of modern and efficient corporate sector and capital market,

based on sound regulatory principles, that provide impetus for high economic growth

and foster social harmony in the Country.

MISION STATEMENT

To develop a fair, efficient and transparent regulatory framework, based on

international legal standards and best practices, for the protection of investors and

mitigation of systemic risk aimed at fostering growth of a robust corporate sector and

broad based capital market in Pakistan.

STRATEGY

To develop an efficient and dynamic regulatory body that fosters principles of goodgovernance in the corporate sector, ensures proper risk management procedures in the

capital market, and protects investors through responsive policy measures and effective

enforcement practices.

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ORGANIZATION OF THE COMMISSSION

The board is organized through three different units:

The policy board

According to the 1997 act the commission has its own board which will cover all matters

concerning with the functions of commission and originate policies in confer with the

Commission. The policy board also gives advices to the government regarding the issues

which are covered by 1997 Act and sometimes the government itself proposes some

issues to it.

According to the Act, the Policy Board should consist of a maximum of nine members

appointed by the Federal Government, including five ex-officio members and four from

the private sector.

The ex-officio members are:

(i) Secretary, Finance Division

(ii) Secretary, Law and Justice Division

(iii) Secretary, Commerce Division

(iv) Chairman of the Commission

(v) A Deputy Governor of the State Bank of Pakistan (SBP).

The commission

It is a young organization whose authority consist of

Chairman: known as the chief executive officer

Commissioners: who assist the CEO and are responsible for the functions of

different operational

The commission secretariat

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This unit is responsible for performing the duties of secretary as well advisor to the

commission.

AREA OF WORK

STRUCTURE OF COMMISSION

Securities division is formed to safe the interest of investor of security market andmaking sure that all the rules and regulations regarding security dealings areenforced.

Specialized companies division is responsible for regulation of non bankingfinancial companies. Its functions include licensing, regulatory compliance andenforcement of all applicable law.

Company law division is consent wit the responsibility of integrating allcompanies and enforcing Companies Ordinance and other statutes andregulations in all companies.

Insurance division is consent for regulating the insurance sector. It wouldexercise powers authorize by the law , and will manage the law of insurance,

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Company

Stock exchange

Insurance company

Central depository authority

Clearing houses

Agents and broker

Insurance brokers

Professional service

providers

Authorized surveying

officers

Non banking financial

companies

REITs

Modaraba Maintenance of Modaraba

Takaful

Credit rating companies

Special purpose vehicle


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covering licensing and supervision of insurers and other regulated body underthat law.

Law division is authorized to make sure that all the services are providedaccording to the mandate of SECP Act of 1997.

SERVICES RENDERED BY SECP

Laws and policy: It formulates different statute, rules, regulations, guidelines,

orders, directives, repeal and lapse rules and policies for different divisions.

Registration: It provides guideline to different members of corporate sector and

financial market that how they can register themselves in proper manner which is

required by law to avoid any inconvenience during their course of work.

Licensing: SECP also grant insurance surveyors, Association not for profit and

NBFCs license for its registration.

Facilitation: Being the facilitator SECP tries to create a supportive environment

which helps enterprises to prosper by providing preferential tax exemptions,

E-services and etc.

Monitoring and compliance: The SECP keeps an eye on the affair of differententities to safeguards the interest of stakeholders, investors and depositors.

Winding up: SECP also provides guidance to entities regarding the issues of

winding up of different entities.

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Protection: SECP tries to create awareness among potential investors regarding

the issues like fraudulent business activities and fake companies. It also arranges

road shows to aware general public that how can made investment in capital

market.

Corporate law review: SECP made different amendments according to the need of

the economy of Pakistan in Companies Ordinance 1984.

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Documents

Final of Secp