secp law presentation

Securities and Exchange Commission of Pakistan

PRESENTED BY: ZARGHAM AWAN

SECP Introduction

SECP stands for Security and Exchange Commission of Pakistan

Financial Regulatory Agency in Pakistan Setup under the Act 1997 This Act may be called as the Securities and Exchange

Commission of Pakistan Act, 1997. It extends to the whole of Pakistan. Save for section 43, the Act shall come into force at

once and section 43 shall come into force on such date as the Federal Government may, by notification in the official Gazette, appoint.

Establishment of commission

The SECP was set up in pursuance of the SECP Act 1997

And become operational in January 1999 It was initially concerned with the regulation of

corporate sector and capital market. Over time, its mandate has expanded to include

supervision and regulation of insurance companies, non-banking finance companies and private pensions.

Definition

The SECP is the financial regulatory agency in Pakistan whose objective is to develop a modern and efficient corporate sector

In order to encourage investment and foster economic growth and prosperity in Pakistan.

Vision, Mission and strategy

Its VISION is the development of modern and efficient corporate sector and capital market, based on sound regulatory principles.

MISSION is to develop a fair, efficient and transparent regulatory framework, based on international legal standards and best practices

STRATEGY is to develop an efficient and dynamic regulatory body , ensures proper risk management procedures in the capital market, and protects investors through responsive policy measures and effective enforcement practices.

Functions

These are the some following functions: Regulating the issue of securities Regulating the business in Stock Exchanges and any

other securities markets Prohibiting fraudulent and unfair trade practices

relating to securities markets Supervising and monitoring the activities of any

central depository and Stock Exchange clearing house

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

Certificates issued by SECP SECP issues these type of Certificates regarding the corporation

Objectives

It was initially concerned with the regulation of corporate sector and capital market.

Now it also concern with the supervision and regulation of insurance companies, non-banking finance companies and private pensions.

The SECP has also been entrusted with oversight of various external service providers to the corporate and financial sector.

SECP Division

The SECP is divided into the following four divisions:

Securities Market DivisionCompany Law DivisionSpecialized Companies DivisionInsurance Division

Law Division

Objective:Growth of enterprise, protection of investors and

creditors, promotion of investment and development of economy

Law division divided into three departments:

RegistrationDepartment

Enforcement Department

Management Team

Securities Market Division

Objective:Protection of investors, regulation of markets

dealings in securities It has two department:

Market Supervision and Capital Issues Department.

Policy, Regulation and Development

Department.

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.

.

4. Insurance Division.

The main objectives includes: Regulates and monitors the

Insurance Sector through Insurance Ordinance, 2000 and the Companies

Ordinance, 1984

Thank you