COMMISSION of PAKISTAN
(SECP)
By:
Mujtaba Haider (12713)
Introduction
TheSecurities and Exchange Commission of
Pakistan(SECP) is thefinancial regulatory agencyin
Pakistan whose objective is to develop a modern and
efficientcorporatesector and acapital marketbased on
sound regulatory principles, in order to encourage
investment and foster economicand prosperity in Pakistan
Itis thefinancial regulatory agencyin Pakistan whose
objective is to develop a
a) modern and efficientcorporatesector
b) capital marketbased on sound regulatory principles
History
The Securities and Exchange Commission of Pakistan (SECP) is the
successor of the former Corporate Law Authority (CLA), which was an
attached department of theMinistry of Finance.
The process of restructuring the CLA was initiated in 1997 under the Capital
Market Development Plan of theAsian Development Bank(ADB).
A Securities and Exchange Commission of Pakistan Act was passed by the
Parliament and promulgated in December 1997.
It became operational on January 1 1999.
The Act gave the organization the administrative authority and financial
independence to carry out the reform program of Pakistans capital market.
Functions
The primaryfederalregulatory agencyfor thesecuritiesindustry,
whose responsibility is:
To promotefull disclosure.
Toprotectinvestorsagainstfraudulentand manipulative
practices in thesecurities markets.
The securities and Exchange Commission is an independent,
quasi-judiciaryagency(A term referring to decisions made by
administrative tribunals or government officials to which the rules
of natural justice apply.).
SEC is responsible for charting out and implementation of laws, rules
and regulations concerning operations of stock and bond market.
Also rules for trading and participation by brokerages, trading
companies and their client corporations whose bond stocks are listed
and traded at stock exchanges.
Organizational Structure
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 operational units as may
be determined by him.
Divisions in SECP
Company Law Division
Its primary functions include registration of companies, regulating
their statutory functions, and monitoring of corporate compliance.
Responsible for regulation and enforcement of companies listed
on stock exchanges, public un-listed and private companies with
relevant laws and applicable accounting standards through review
of accounts, investigation, and prosecution.
Insurance Division
The SECP, being the apex regulator of the insurance industry, has a
strategic priority and commitment to strengthen and maintain an effective
regulatory environment in which insurance and takaful business can flourish
and prosper.
SECP in action
THE END