What to Discuss

HistoryAbout SECPOrganizationOrganizational StructureCommissionBoardLegal DepartmentsServices Offered by SECPMarket DivisionsSecurities Market DivisionSpecialized company DivisionFinance & Admin Division

ResponsibilitiesStakeholders of SECP

HistoryThe Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority

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)

IntroductionThe 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 1997This Act institutionalized certain policy decisions relating to the constitution and structure, powers, and functions of the SECP Operational in Jan 1999

Continued.It was concerned with the regulation of:Corporate sector and capital marketInsurance CompaniesNon-Banking finance companiesPrivate pensions

Vision StatementMission StatementStrategy

VisionThe 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.

MissionTo 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.

StrategyTo 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.

OrganizationThe Policy Boardmain objective of the Policy Board is to provide guidance to the Commission in all mattersrelating 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

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

Ex. Officio membersDr. Waqar Masood Khan (finance division)Mr. Tahir Mehmood (acting chairman of SECP)Mr. Zafarullah Khan (law, justice and human rights division)Mr. Qasim M. Niaz (ministry of commerce)Mr. Ashraf Mehmood Wathra (Deputy Governor of SBP)

Members of private sectorMr. Osman Saifullah KhanMr. Javed Aslam CalleaHafiz Mohammad YousafMr. Kamal Hassan Siddiqui

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 development of domestic markets to unite their efforts to establish standards and an effective surveillance of international securities transactions

Memorandum of Understanding between SBP and SECP SBP is entrusted with the responsibility of promoting monetary and financial stability and fostering a sound and dynamic banking system, by regulating and supervising it, to safeguard the interest of stakeholders.SECP has now given the responsibility of regulating the NBFIs, regulation of Corporate sector, capital markets and insurance sector. To share information and work towards the holistic development of the financial sector in supervision of banks/DFIs and NBFCs operating in Pakistan.

The Commission:Commission is a collegiate body with collective responsibility Operational and executive authority of the Commission is vested in the Chairman who is (CEO). The Commission presently consists of three Commissioners including the Chairman:MR. TAHIR MEHMOODMR. IMTIAZ HAIDERMR. MOHAMMED ASIF ARIFMR. ZAFAR ABDULLAH

The Commission Secretariat: To assist the Chairman of the SECP and external entities, in achieving the objectives of the SECP in an efficient and holistic mannerThe Commission Secretariat is headed by MS. BUSHRA ASLAM, Secretary It coordinates the overall functioning of the SECP and liaises with external entities:Including government agencies and multilateral and international organizations In addition, it supervises the internal monitoring function within the SECP and is responsible for the management The internal audit function is headed by the Director

SERVICESLaws and PoliciesRegistrationLicensingFacilitationMonitoring & ComplianceEnforcementDevelopmentProtectionCorporate Laws

Regulations:

Corporate sectorCapital marketInsurance SectorNon Banking sectorPensionsProfessional services

The Legal Department Legal Department is headed by the Executive Director

It operates under the direct guidance of the Chairman

to manage the legal affairs of SECP and provide impartial legal advice to each operational Division and Department of the SECP.

Securities Market DivisionIt is responsible for the regulation of all aspects of the securities market including:licensing and coordination regulation of secondary market public offerings market intermediaries market surveillance. To provide for the protection of investors, regulation of markets and dealings in securities.

Specialized Company DivisionRegulates and monitors insurance companies, non-banking finance companies, Modarabas and private pensionsSpecialized Companies Division seeks to provide a conducive regulatory environment To foster growth in the non-banking financial sector, safeguard the financial system Protect the interests of shareholders, depositors and policyholders under the relevant laws

Finance & Admin Division

Responsible for directing and controlling the areas of accounting, facilitating overall operations of the SECP and ensuring its smooth functioning. division has been organized into the following departments:Finance & Accounts DepartmentAdministration Department

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 stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, underwriters, portfolio managers

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 NBFIsPromoting 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

Continued

Stake Holders

Industry Association and Professional BodiesNBFCSCredit Rating CompaniesGovernment Ministries & DepartmentsInternational Organizations