presentation on SECP

7/28/2019 presentation on SECP

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Presentation

SECURITY AND EXCHANGE

COMMISION OF PAKISTAN (SECP).


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Group Members..

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


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Fida Hussain 115


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History

The Securities and Exchange Commission of Pakistan wascreated to succeed the Corporate Law Authority (CLA) an attached Department of the Ministry of Finance

process of restructuring the Authority was initiated in 1997under the Capital Market Development Plan of the (ADB).

SECP was passed by the Parliament and promulgated inDecember 1997

Act gave the administrative authority and financialindependence to carry out the reform program of Pakistanscapital market with the assistance of (ADB)
http://en.wikipedia.org/wiki/1997http://en.wikipedia.org/wiki/1997


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Continued.

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, realestate 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.


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Introduction

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 theconstitution and structure, powers, and functions of the SECP

Operational in Jan 1999


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S.Ishfaq ali shah 103


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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 operationalunits 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


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Continued..

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


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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


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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 inPakistan.


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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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Location

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


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Muhammad Tariq 136


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International Memberships

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 developmentof domestic markets

to unite their efforts to establish standards and an

effective surveillance of international securities

transactions


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The Establishment of the Commission

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.


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Continued.

Over time, its mandate has expanded to includesupervision and regulation of insurance companies,

non-banking finance companies and privatepensions.

The SECP has also been entrusted with oversight ofvarious external service providers to the corporate

and financial sectors, including charteredaccountants, credit rating agencies, corporatesecretaries, brokers, surveyors etc.

The challenge for the SECP has amplified manifoldwith its increased mandate.


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Umer Nasir 109


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SERVICES

Laws and Policies

Registration Licensing

Facilitation

Monitoring & Compliance

Development Protection

Corporate Laws


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Regulations

Corporate sector Capital market

Insurance

Non Banking sector

Pensions

Professional services


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Abdur rashed 114


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Responsibilities of SECP

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 stockbrokers, sub brokers, share transfer agents, bankers to

an issue, trustees of trust deeds, registrars to an issue,

underwriters, portfolio managers


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Continued

Promoting and regulating self-regulatoryorganizations including securities industry andrelated organizations such as Stock Exchanges andassociations of mutual funds, leasing companies andother NBFIs

Promoting investors education and training ofintermediaries of securities markets

Regulating substantial acquisition of shares and themerger and take-over of companies

Encouraging the organized development of thecapital market and the corporate sector in Pakistan

Conducting research in respect of any of the mattersset out in this sub-section


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Role of SECP in the economy

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 boostinvestment 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 domesticstock exchanges.


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Continued

It was also decided in the meeting that in

consultation with the FBR, joint proposals will be

submitted to the federal government to seek somesort 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 toroad shows and seminars to be conducted by the

SECP regarding its planned investors awareness

campaigns.


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Asghar khan 107


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Continued

SECP announces the

establishment of Shariah

advisory board


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Continued

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.


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Continued

Accordingly, the Commission has given its formalassent on the formation of Shariah Advisory Board

(the SAB of SECP) pursuant to Section 9 of theSecurities and Exchange Commission of Pakistan Act1997.

The (9) members of, the SAB of the SECP shallinclude prominent Shariah Ulemas, a jurist, anaccountant and representatives of the Commission.Each member of the SAB shall be a qualifiedindividual with in-depth knowledge and experience ofIslamic accounting, finance, economics and Shariah

law.


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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.


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Key function of SAB

To validate the products of IFIs and to ensure their compatibility

with the Shariah principles.

Recommend guidelines on the criteria for investment by IslamicCapital 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.


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presentation on SECP

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