TOPIC:

SECURITIES AND EXCHANGE

COMMISSION OF PAKISTAN

PRESENTED BY:
AMMARA AHMAD
ROLL NO.:20541
M.BA(BANKING&FINANCE)
SEMESTER 3RD (M)
WHAT TO DISCUSS:
 INTRODUCTION
 ABOUT SECP
 HISTORY
 OBJECTIVES
 FUNCTIONS OF SECP
 ORGANIZATIONAL STRUCTURE
 SECP DIVISIONS
INTRODUCTION
 The securities and exchange commisson of Pakistan (SECP) is the Financial
regulatory agency in Pakistan.

 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 was passed by Parliament in December 1997.

• became operational on January 1 1999.

• It was concerned with the regulation of:

Insurance companies
Private pensions
Corporate sector and capital market
Non-banking finance companies
Continued;

• 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.

• Mission 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.
ABOUT SECP
 Mr. Zafar Hijazi took over as the Chairman of the
Securities and Exchange Commission of Pakistan
on December 19, 2014.

 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, Faisalabad and Quetta.
HISTORY:
 SECP is the successor of the erstwhile Corporate Law Authority
(CLA),

 A Securities and Exchange Commission of Pakistan Act.

 scope of the authority of the SECP.

OBJECTIVES OF SECP
Objective is to develop a;
Modern and efficient corporate sector
Capital market.
Based on sound regulatory principles in order to
 encourage INVESTMENT and
foster ECONOMIC GROWTH and PROSPERITY
in Pakistan.
FUNCTIONS OF SECP:

The regulatory functions of SECP fall under following four broad

categories
Registration and licensing
Supervision(prudential and regulatory)
Appellate bench
Investor awareness and education
Administration of professional like chartered accountants, cost
accountants and corporate secretaries.
Organization:

 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.
SECP DIVISION

COMPANY
LAW
DIVISION

SECURITIES
MARKET SECP Specialized
DIVISION companies division
DIVISION

Insurance division
1.COMPANY LAW DIVISION:
 The company law division(CLD) has two departments

company law division

1. corporatization and 2. corporate supervision

compliance department division
Corporatization and compliance department is
responsible for administration of the 1984 Companies Ordinance, and
the rules and regulations made under it, along with other relevant
laws.
 its primary functions include registration of companies, regulating
their statutory functions, and monitoring of corporate compliance
through examination of statutory returns and accounts.
 These functions are performed by the eight regional offices of the
SECP called the Company Registration Offices (CROs). The
department supervises, coordinates and monitors the working of the
CROs.
Corporate supervision department is responsible for
regulation and enforcement of companies listed on stock exchanges,
public unlisted companies, private companies having paid-up capital
of Rs100 million and above and companies formed under section 42
and 43 of the 1984 Companies Ordinance (except insurance
companies, non-banking finance companies and modarabas) with
relevant laws and applicable accounting standards through review of
accounts, investigation, and prosecution.
2.Securities market division
 The Securities Market Division (SMD) is responsible for
monitoring, regulating, and developing the securities market.

 The division has three departments:

Policy, Regulation and Development Department
Licensing and Capital Issues Department
Surveillance, Supervision and Enforcement Department
3.Specialized companies ordinance
 The SCD strives to provide a regulatory environment which is
conducive for development and promotion of a robust Non-Bank
Financial (NBF) Sector.
• The major functions performed by SCD for the NBF Sector include:
licensing, registration, regulation, on-site inspection, off-site
surveillance and enforcement.
• For operational ease and enhanced efficiency, the SCD has been
divided into two main Departments:
Policy, Regulation and Development Department (PRD)
Supervision and Enforcement Department
4.Insurance division

 The Securities and Exchange Commission of Pakistan has been

regulating the Insurance industry, since January 2001.
 The SECP regulates and monitors the Insurance Sector in the
country through powers vested in the Insurance Ordinance, 2000
and the Companies Ordinance, 1984.
 To strengthen SECP’s role as an effective facilitator for sound
development of the insurance and takaful industry and to
achieve the underlying objective of raising the insurance
penetration level, the following key areas have been in focus of
SECP’s efforts:
Protection of the interest of insurance policyholders.
Amendments in the regulatory framework to strengthen SECP’s
role as an apex insurance regulator.
Insurance Awareness Programs.
Enhanced public image of the insurance industry.

Insurance Division has been divided into two

main departments:
Policy, Regulation and Development Department
Supervision Department