SECURITIES AND

EXCHANGE
COMMISSION OF
PAKISTAN
Industry Government Administration
The Securities and Exchange Commission of
Pakistan (SECP) is a government agency Type Government Agency
whose purpose is to develop a modern and
efficient corporate sector and a capital Status Operating
market based on sound regulatory Company 2,000 employees
principles, in order to foster economic Size
growth and prosperity in Pakistan Website http://www.secp.gov.pk

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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

A BRIEF DESCRIPTION ABOUT THE

REGULATORY AUTHORITYOF CAPITAL MARKET
IN PAKISTAN

SUBMITTED TO SUBMITTED BY

MA’AM SADIA _________ ROSHAN AISHA

BS 2007

Dated: 18 august 2010

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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

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 Parents…They 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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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

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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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

PREAMBLE
The Securities and Exchange Commission of Pakistan is regulated under the act of
Securities 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 good
governance 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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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

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
• Authorized surveying • Company
officers • Stock exchange
• Non banking financial • Insurance company
companies • Central depository authority
• REITs • Clearing houses
• Modaraba • Agents and broker
• Maintenance of Modaraba
• Insurance brokers
• Takaful
• Professional service
• Credit rating companies providers
• Special purpose vehicle

STRUCTURE OF COMMISSION
• Securities division is formed to safe the interest of investor of security market and
making sure that all the rules and regulations regarding security dealings are
enforced.

• Specialized companies division is responsible for regulation of non banking

financial companies. Its functions include licensing, regulatory compliance and
enforcement of all applicable law.

• Company law division is consent wit the responsibility of integrating all

companies and enforcing Companies Ordinance and other statutes and
regulations in all companies.

• Insurance division is consent for regulating the insurance sector. It would

exercise powers authorize by the law , and will manage the law of insurance,

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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

covering licensing and supervision of insurers and other regulated body under
that law.

• Law division is authorized to make sure that all the services are provided
according 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 different
entities 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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