Group Members
‡ Hassan Abbas ‡ Hafiz Islam Aslam ‡ Muhammad Suleman

Presentation Outline
‡ ‡ ‡ ‡ ‡ ‡ ‡ What is SECP History SECP Mandate ‡ Commission (Formation) Organizational Structure of SECP Data and Information at SECP‡ Division of SECP ‡ International Relationship Status Users of SECP Data SECP and 18th Amendment ‡ Policy Board ‡ Members ‡ Powers and Functions of Commission of Policy Board ‡ Powers and Function of Policy Board

.Introduction ‡ The SECP is a government agency falls under Ministry of Finance ‡ Its purpose is to develop a modern and efficient ± corporate sector and a capital market based on sound regulatory principles. ± to foster economic growth and prosperity in Pakistan.

‡ CLA was restructured under the Capital Market Development Plan of the Asian Development Bank (ADB).History ‡ The Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority (CLA). . ‡ Act becomes operational on January 1 1999. ‡ A Securities and Exchange Commission of Pakistan Act was passed by the Parliament and promulgated in December 1997.

SECP¶s Mandate ‡ Commission's mandate includes         Investment Financial Services. Venture Capital Investment. Leasing Companies.  Rating Agencies. etc. Housing Finance Services. Real Estate Investment Companies and Asset Management Services. Investment Advisory Services. Discounting Services. . ‡ The Commission also regulates various external service providers  Chartered Accountants.

Organization Structure of SECP .

Enforcement 3. 1. Securities Market & Surveillance 4.Data and Information at the SECP ‡ SECP holds data and information of over 57.689 registered companies registered with SECP up to December 31st. Finance & Administration . ‡ Nature and type of information being compiled and stored is largely inline with needs and requirements of SECP and its major departments.2010. NBFC 5. Registration 2. Insurance 6.

Company Registration and Compliance System ± Registration Department 2. ‡ Some examples of the systems in place are: 1.Insurance 5. Enforcement & Monitoring System ± Enforcement Department 3. and promote IT use. Regulatory System for Insurance . Regulatory and Compliance System for NBFCs .Data and Information at the SECP ‡ Various types of IT applications have been implemented and are under development by the SECP to capture data/information. Brokers and Agents Registration and Management System ± Securities Market 6.NBFC 4. CRCS Company Registration and Compliance System for Online registration and filing system .

7. 3. 5.Users SECP Data ‡ Users and stakeholders of SECP data range from 1. 6. 4. Government organizations and ministries Private companies State Bank of Pakistan FBR Federal Bureau of Statistics Credit Rating Agencies Students for Research . 2.

it is expected that the SECP will be disbanded once the 18th amendment becomes law .Status after 18th amendment to the 1973 constitution of Pakistan ‡ 18th amendment¶s concurrent legislative list. registration and regulation. subject 6 to 11 and 26 to 28 of the list deal with corporate law.


The Divisions are: ‡ ‡ ‡ ‡ ‡ ‡ Securities Market Division Specialized Companies Company Law Administration Division Enforcement Division Insurance Division Support Services Division . each of which is headed by an Executive Director and divided into Wings for effective administration.Division of SECP ‡ The work of the Commission has been distributed amongst its six divisions.

Brokers and registration Market Monitoring and Surveillance Investor Complaints Beneficial Ownership Capital Issues Stock Exchange .Division of SECP ‡ Securities Market Division The Securities Market Division (SMD) is responsible for regulation ‡ ‡ ‡ ‡ ‡ ‡ of all aspects of the securities market.

Investigation and Prosecution ‡ Licensing. Approvals and Appeals .Division of SECP ‡ Enforcement and Monitoring Division ‡ Accounts ‡ Investigation ‡ Compliance and Prosecution ‡ Company Law Administration Division ‡ Coordination and Liaison ‡ Regulation and Compliance ‡ Enforcement.

Division of SECP ‡ Insurance Division ‡ Actuarial Services ‡ Life Insurance Prudential Supervision ‡ Non-life Insurance Prudential Supervision ‡ Market Conduct Supervision ‡ Enforcement and Prosecution ‡ Support Services Division ‡ Human Resource ‡ Administration ‡ Finance and Accounts .

Its functions include licensing. modarba companies. monitoring. ‡ Leasing ‡ Modarba companies ‡ Mutual funds and other specialized companies . regulatory compliance and enforcement of all applicable laws.Division of SECP ‡ Specialized Companies Division The Specialized Companies Division (SCD) is responsible for regulation of leasing companies. mutual funds and other specialized companies (except insurance companies).

International Status ‡ SECP has been playing an active role in the activities of International Organization of Securities Commissions ‡ 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 .

Securities and Exchange Policy Board Main objective of the Policy Board is to provide guidance to the Commission in all matters Relating to its functions and to formulate policies in consultation with the Commission Policy Board is also responsible for advising the Government on matters falling within the purview of the Act and other corporate laws .

Secretary. Secretary. Law and Justice Division. Commerce Division. Finance Division. and Deputy Governor of the State Bank of Pakistan (SBP) .Policy Board Members ‡ Policy Board consist of a maximum of nine members appointed by the Federal Government ‡ Five ex-officio members and four from the private sector ‡ Ex-officio members are ‡ ‡ ‡ ‡ ‡ Secretary. Chairman of the Commission.

Commissioners 1. The Commissioners ‡ Shall consist of not less than five and more than seven ‡ The majority shall always be of private sector persons ‡ Conduct its proceeding in accordance with the regulation made by the commission ‡ Shall be paid remuneration and allowances determine & approved by the board . Establishment of Commission 2.

CEO of the commission ‡ Responsible for day to day affairs of the commission.Commissioners (cont¶d) 3. The Chairman ‡ One of the commissioner as chairman and not more than two consecutive terms. . 4.


‡ Functions: ± Work or operate in a proper or particular way is known as functions. .Powers and Functions ‡ Powers: ± The ability to do something or act in a particular way is called powers.

± May control issue of securities by law. ± Commission have power to control all the corporate bodies and cancel registration of any body with legal reason. ± The Commission may check all matters time to time.Powers of Commission ‡ Commission shall have all the powers which are necessary to perform its duties. identify the matters requiring the Board to make polices and decisions. .

± Regulating the business in Stock Exchanges and any other securities markets. ± supervising and monitoring Stock Exchange. clearing house.Functions of Commission ± Regulating the issue of securities. . ± supervising and monitoring the activities of any central depository.

share transfer agents. underwriters. .Professional Functions of Commission buyer and sellers ± Registering and regulating the working of stock brokers. exchange but acts on behalf of ± Proposing regulationsa stock-broker registration and for the as an regulating the working agent Collective Investment of schemes. A collective investment scheme is a way of investing money with others to participate in a wider range of investments. sub-brokers. and such other intermediaries who may Person not being a be associated with the securities markets in any member of a stock manner.

± Promoting investors education and training of intermediaries of securities markets.Functions of Commission ± Commission also conduct investigations in respect of matters related to the Ordinance. . ± Considering to reforms law and commission also give suggestions to make changes in rules relating to companies and bodies corporate.

All bodies incorporate outside of Pakistan and already listed in stock exchange of Pakistan and want to issue additional securities. All public companies incorporate in Pakistan and want issue their securities outside of Pakistan. 3. 2. . 1. Companies incorporate outside of Pakistan and want to issue their securities in Pakistan.Functions of Commission ± Encouraging the organized development of the capital market and the corporate sector in Pakistan. ± Commission give approvals if.

Commission Board Federal Government . Board also make policies for commission and pass it from Federal Government and impose on commission.Board Commission Board: Board is the selected members of the commission appointed by the Federal Government.

‡ Establish the policy of the Commission and monitor and oversee its implementation.Powers and Functions of Board ‡ Board after consultation with the Commission Advice to the federal government. ‡ Express its opinion in writing on any policy matter referred to it by the Federal Government or the Commission .

The Commission¶s resources are utilized economically and efficiently. The Commission is operated in accordance with principles of board or federal government. The Commission fulfils its statutory obligations and properly discharges its functions . 2. 1.Powers and Functions of Board ‡ Monitor and oversee the Commissioner¶s management of the Commission ensuring that. 3.

. instructed by Federal Government. prepared and submitted to the Federal Government .‡ Approve (with or without modification) the budget for each financial year of Commission. ‡ And perform all the instruction.

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