Securities and

Exchange Commission
of Pakistan(SECP)

The Team
1.Chairman

Mr.Zafar Hijazi
(19 Dec

2014)

Chartered Accountant (CA)

by profession
Previously serving as a
commissioner in SECP

Cont.

2.The Policy Board

Secretary, Finance Division;

Secretary, Law and Justice Division;

Secretary, Commerce Division;

Chairman of the Commission; and

a Deputy Governor of the State Bank

of Pakistan (SBP).

Cont.
3.The Commission

The Commission is a collegiate body with

collective responsibility.

Operational and executive authority of the

Commission is vested in the Chairman who is the
Commission's Chief Executive Officer (CEO).

He is assisted by the Commissioners, particularly

to oversee the working of various operational
units as may be determined by him.

Organizational Structure

Functions

These are the some following functions:

regulating the issue of securities.

regulating the business in Stock Exchanges and

any other securities markets

proposing regulations for the registration and

regulating the working of collective investment
schemes, including unit trust schemes;

prohibiting fraudulent and unfair trade

practices relating to securities markets

Cont.

promoting investors education and training of

intermediaries of securities markets.

encouraging the organized development of the

capital market and the corporate sector in
Pakistan

conducting inquiries and audits of the Stock

Exchanges and intermediaries and selfregulatory organizations in the securities
market.

Cont.

regulating substantial acquisition of shares and

the merger and take-over of companies

regulating professional organizations

connected with the insurance business.

approve all public companies incorporated in

Pakistan which intend to issue or offer for sale
securities in markets outside Pakistan or to list
such securities on a Stock Exchange outside
Pakistan.

SECP Division

The SECP is divided into the following four divisions:

Law Division
Objective:
Growth of enterprise, protection of investors and
creditors, promotion of investment and
development of economy
Law division divided into three departments:

1.Registration Department

Its primary functions

are registration of
companies, monitoring
the corporate
compliance and
regulating their statuary
functions.

2.Enforcement Department

Enforcement Department is
responsible for ensuring the
listed corporate sectors
(excluding NBFCs, Moradabad
and insurance companies).

3.Management Team

Mr. Abdul Rehman Qureshi,

Commissioner heads the
CLD. In managing the
Registration Department,
he is assisted by a
Director, a Registrar of
Companies and an
Additional Registrar

Securities Market Division

Objective:
Protection of investors, regulation of markets
dealings in securities
It has two department:

i.Policy, Regulation and

Development Department:
It consists of following wings.

Stock Exchanges, Depository and Clearing

House Wing: (SEDC).
The SEDC is responsible for formulating the regulatory
framework of the three stock exchanges.

Commodities and Derivatives Wing: (CC).

The CC is presently responsible for formulating the
regulatory framework and for continuously reviewing the
existing regulatory framework of the Pakistan Mercantile
Exchange Limited (PMEX) for improved risk management,
good governance , investor protection .

Cont.

Capital Issues Wing: (CIW).

The Capital Issues Wing (CIW) deals with the cases regarding approval of
prospectuses for public issue/offer of securities.
CIW also processes cases regarding issue of securities outside Pakistan
under Section 62-A of the Companies Ordinance, 1984.

ii.Market Supervision and

Registration Department:
It consists of following wings.

Compliance and Inspection Wing:

This Wing ensures the compliance of relevant
rules and regulations by the Stock Exchanges and
other market intermediaries to strengthen the
market.

Cont.

Brokers Registration and Investor

Complaints Wing:

The Wing is entrusted with registration of brokers

and agents and handling investor complaints.
To ensure investor protection it works in close
coordination with stock exchanges.

3.Specialized Companies Division

Objective:

To provide a regulatory environment

for the development and promotion
of a Non-Bank Financial (NBF) sector.

Protect the interests of shareholders,

depositors and policyholders under
the relevant laws.

Cont.

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.

i.Policy, Regulation and

Development Department
(PRD):

PRD performs the

functions of licensing,
registration, provision of
comprehensive
regulatory framework
and granting necessary
regulatory approvals to
the NBF sector.

ii.Supervision and
Enforcement Department:

Supervision and
Enforcement
Department is
primarily responsible
for centralized
functions of On- site
Inspection, Off-site
Surveillance

4. Insurance Division.

The

main objectives includes:

Regulates

and monitors the

Insurance Sector through

Insurance Ordinance, 2000 and the Companies

Ordinance, 1984

Restructuring of SECP
insurance division
Restructuring
of
the
division:

Policy
reforms
Registratio
n
Reinsuranc
e
Litigation
Advisory

Policy,
Regulatio
n and
Develop
ment

Insurance
Division

Supervisio
n

On-Site
Inspections

Off-Site
surveillance
Enforcement

SECP- Capital Market

Development Plan(CMDP)

The proposed plan would focus on

five areas:

1.

Investor Education and Expanding Capital Market to Masses

2.

Encouraging new Listings

3.

Introduction of new Products

4.

Improving coordination with various Regulators and Government

Bodies

5.

Revamping Legal Framework

1.Investor Education and

Expanding Capital Market to
Masses:

SECP coordination with stock exchanges

and other stakeholders
to organize
road shows.

Investor
Awareness
Generation
Committee to create Capital Market
Hubs in small cities.

2.Encouraging New Listing

Processes of book building and initial

public offering would be streamlined to
make them more efficient and less
cumbersome.

Separate boards for facilitating SME.

Safeguard investors from investing in

defaulting companies.

3.Introduction of New
Products

Reviewing
existing
products and market
segments,
including
development of Islamic
Products.

E-Dividend and E-Voting

facilities.

4.Improving coordination with

various Regulators and
Government Bodies:

Improving coordination
with relevant
ministries, nongovernmental and
foreign institutions to
improve Pakistan's
image/ranking in the
global index providers
like the MSCI, FTSE,
etc.

5.Revamping Legal
Framework

Redesigning of legal framework in order to

make it easier for small and private
companies.

Difference
International
Monetary
Fund
(IMF)
VS

World
Bank

IMF-International Monitory
Fund

Abbreviation

IMF

Formation

27December 1945

Membership

188 countries

Headquarter

Washington DC.

Biggest Borrowers

Greek, Portugal, Ireland

Cont.

Roles Of IMF:

Tracks global economic trends and performance

Alerts its member countries

Provides a forum for policy dialogue

Provides policy advice and financing to members

Objectives:

To provide the global public good of financial stability

Facilitate the growth of international trade, thus promoting job creation,

economic growth, and poverty reduction

Promote exchange rate stability and an open system of international

payments

Lend countries foreign exchange when needed, on a temporary basis

and under adequate safeguards, to help them address balance of
payments problems

WB-World Bank

Abbreviation

WB

Formation

July 1944

Membership

188 countries (IBRD)

172 countries (IDA)

Headquarter

Washington DC.

Biggest Borrowers
Turkey

Mexico, Brazil,

Cont.
Role of World Bank:

Granting reconstruction & development loans

Providing loans to governments & private concerns

Promoting foreign investment

Providing technical, economic and monetary advice

Encouraging industrial development

OBJECTIVES OF WB:

Reduce poverty

Reduce illiteracy

Reduce diseases

Reduce corruption

Difference Between IMF &

World Bank

The International Monetary Fund

Oversees the international monetary system

World Bank

Promotes exchange stability and orderly

exchange relations among its member countries

Seeks to promote the economic development of the

world's poorer countries

Assists developing countries through long-term financing

of development projects and programs

Assists all members--both industrial and

developing countries--that find themselves in
temporary balance of payments difficulties by
providing short- to medium-term credits

Provides to the poorest developing countries whose per

capita GNP is less than $865 a year special financial
assistance through the international development
association (IDA)

Draws its financial resources principally from the

quota subscriptions of its member countries

Acquires most of its financial resources by borrowing on

the international bond market

Has at its disposal fully paid-in quotas now

totaling SDR 145 billion (about $215 billion)

Has a staff of 2,300 drawn from 182 member

countries

Has an authorized capital of $184 billion, of which

members pay in about 10 percent

Has a staff of 7,000 drawn from 180 member countries

Cooperation between IMF &

WB
Although the Bank and IMF are distinct
entities, they work together in close
cooperation:

This cooperation has become more

prominent since the 1970s.

The Bank and the IMF have distinct

mandates that allow them to contribute,
each in its own way, to the stability of the
international monetary and financial system
and to the fostering of balanced economic
growth throughout the entire membership.

Cont.

The bedrock of cooperation

between the Bank and IMF is the
regular and frequent interaction of
economists and loan officers who
work on the same country.

both institutions encourage other

lenders, both private and official,
to join with them in co financing
projects and in mobilizing credits
to countries that are in need.