SECURITY AND EXCHANGE COMMISION OF PAKISTAN (SECP).

Presentation

S.Fida hussain B09-115 Syed Ishfaq Ali Shah B09-103 Muhammad Tariq B09-136 Umer Nasir B09-109 Abdur rashed B09-114 Asghar Khan B09-107

Group Members..

Fida Hussain 115

 The Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority (CLA) an attached Department of the Ministry of Finance process of restructuring the Authority was initiated in 1997 under the Capital Market Development Plan of the (ADB). SECP was passed by the Parliament and promulgated in December 1997 Act gave the administrative authority and financial independence to carry out the reform program of Pakistans capital market with the assistance of (ADB)

History

 The scope of the authority of the SECP has been extensively widened since its creation. The insurance sector, non-banking financial companies, and pension funds have been added to the purview of the Commission . Now the SECP's mandate includes investment financial services, leasing companies, housing finance services, venture capital investment, discounting services, investment advisory services, real estate investment trust and asset management services, etc. The SECP also regulates various external service providers that are linked to the corporate sector, like chartered accountants, rating agencies, corporate secretaries and others.

Continued.

 The Securities and Exchange Commission of Pakistan (SECP) is an organization whose purpose is to develop a modern and efficient
Corporate sector and a capital market based on sound regulatory principles, in order to foster Economic growth and prosperity in Pakistan.

SECP Act 1997

Published by authority Islamabad, Friday , Dec 26, 1997 This Act institutionalized certain policy decisions relating to the constitution and structure, powers, and functions of the SECP Operational in Jan 1999

Introduction

S.Ishfaq ali shah 103

 The SECP is a collegiate body with collective responsibility. Operational and executive authority of the SECP is vested in the Chairman who is the SECP's Chief Executive Officer (CEO). He is assisted by four (4) Commissioners, particularly to oversee the working of various operational units as may be determined by him. The SECP is divided into the following five divisions: Company Law Division Securities Market Division Specialized Companies Division Insurance Division Law Division

Organization

 It was concerned with the regulation of:

Corporate sector and capital market Insurance Companies Non-Banking finance companies Private pensions

Vision Statement Mission Statement Strategy

Continued..

 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

Vision 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.

Mission Statement

 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.

Strategy

 The SECP's head office is located in the NIC Building on Jinnah Avenue in the Blue Area of Islamabad, Pakistan's capital It also has regional offices called Company Registration Offices (CROs) in Karachi, Lahore, Multan, Peshawar, Sukkur, Faisalaba d and Quetta

Location

Muhammad Tariq 136

 SECP has been playing an active role in the activities of International Organization of Securities Commissions (IOSCO) to cooperate together to promote high standards of regulation to exchange information on their respective experiences in order to promote the development of domestic markets to unite their efforts to establish standards and an effective surveillance of international securities transactions

International Memberships

 The Securities and Exchange Commission of Pakistan (SECP) was set up in pursuance of the Securities and Exchange Commission of Pakistan Act, 1997. This Act institutionalized certain policy decisions relating to the constitution and structure, powers, and functions of the SECP, thereby giving it administrative authority and financial independence in carrying out its regulatory and statutory responsibilities. The SECP became operational in January 1999 and has come a long way since then. It was initially concerned with the regulation of corporate sector and capital market.

The Establishment of the Commission

 Over time, its mandate has expanded to include supervision and regulation of insurance companies, non-banking finance companies and private pensions. The SECP has also been entrusted with oversight of various external service providers to the corporate and financial sectors, including chartered accountants, credit rating agencies, corporate secretaries, brokers, surveyors etc. The challenge for the SECP has amplified manifold with its increased mandate.

Continued.

Umer Nasir 109

Laws and Policies Registration Licensing Facilitation Monitoring & Compliance Development Protection Corporate Laws

SERVICES

Corporate sector Capital market Insurance Non Banking sector Pensions Professional services

Regulations

Abdur rashed 114

 Regulating the issue of securities Regulating the business in Stock Exchange and any other securities markets; Supervising and monitoring the activities of any central depository and stock exchange clearing house registering and regulating the working of stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, underwriters, portfolio managers

Responsibilities of SECP

 Promoting and regulating self-regulatory organizations including securities industry and related organizations such as Stock Exchanges and associations of mutual funds, leasing companies and other NBFIs Promoting investors education and training of intermediaries of securities markets Regulating substantial acquisition of shares and the merger and take-over of companies Encouraging the organized development of the capital market and the corporate sector in Pakistan Conducting research in respect of any of the matters set out in this sub-section

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 In pursuance of its mandate to encourage and facilitate investment in the country through listing on the stock exchanges, Imtiaz Haider, the SECP Commissioner for Securities Market, met Saleem H. Mandviwalla, Chairman, Board of Investment (BoI) and compared notes on encouraging investment in the country. The BoI Chairman appreciated the SECP initiative, saying that being a regulator of the capital market and corporate sector it can play important role in the development of the economy. He stated that investor-friendly policies and behaviour can boost investment in the country which may help development of the capital market through public participation. It was agreed that coordinated efforts shall be made for, encouragement of investment in the country through public participation, development of the capital market and encouragement of new listing on the domestic stock exchanges.

Role of SECP in the economy

 It was also decided in the meeting that in consultation with the FBR, joint proposals will be submitted to the federal government to seek some sort of tax incentives for listed companies. Moreover, the SECP and its policies for facilitation of investors will be given appropriate projection in BoIs various publications, seminars and conferences. Similarly, the BoI will be invited to road shows and seminars to be conducted by the SECP regarding its planned investors awareness campaigns.

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Asghar khan 107

SECP announces the establishment of Shariah advisory board

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 Considering the need for Islamic Financial Institutions (IFIs) and Islamic Capital markets (ICMs) to innovate and operate within the purview of Shariah principles and to ensure that aforesaid organizations business dealings are in line with Islamic principles, the Securities and Exchange Commission of Pakistan deemed it necessary to have a central advisory body to guide their transactions in accordance with the principles of Shariah.

Continued

 Accordingly, the Commission has given its formal assent on the formation of Shariah Advisory Board (the SAB of SECP) pursuant to Section 9 of the Securities and Exchange Commission of Pakistan Act 1997. The (9) members of, the SAB of the SECP shall include prominent Shariah Ulemas, a jurist, an accountant and representatives of the Commission. Each member of the SAB shall be a qualified individual with in-depth knowledge and experience of Islamic accounting, finance, economics and Shariah law.

Continued

 Apart from acting as a reference body and advisor to the Securities and Exchange Commission of Pakistan (SECP) on Shariah matters, the SAB of the SECP shall be entrusted with the ascertainment of Islamic law for the purpose of development and promotion of Islamic Financial Institutions (IFI) which includes Islamic Mutual Funds, Islamic Pension Funds, Takaful Operators and other financial institutions which are based on Shariah principles and are supervised and regulated by the SECP.

Continued

 To validate the products of IFIs and to ensure their compatibility with the Shariah principles. Recommend guidelines on the criteria for investment by Islamic Capital Institutions. Advise on reporting & auditing standards. Undertake educational activities for understanding of Shariah principles. And the introduction and implementation of new models and products based on international research. The SAB of SECP shall also endeavor to foster the growth and development of Islamic Financial Market and provide guidelines for devising new products and services.

Key function of SAB

Group B