Presentation on SECP... Presented by student of Commerce Department BZU Multan.

2. Group 2
 Aazam Nawaz
 Farah Tayaba
 Hanya Malik
 Zeshan Iqbal
 Faiz Aalam
 Aamir Raza

3. Before SECP…
Corporate Law Authority (CLA)
 Before SECP…:
 Corporate Law Authority was control the
Corporation Sector under the ministry of finance
till 1997.

4. The Establishment of the SECP
 The Securities and Exchange Commission of
Pakistan (SECP) was set up in pursuance of the
Securities and Exchange Commission of
Pakistan Act, 1997.
 The SECP became operational in January 1999

5. Securities and Exchange
Commission of Pakistan
 The Securities and Exchange Commission
of Pakistan (SECP) is the financial
regulatory agency in Pakistan.

6. Securities and Exchange
Commission of Pakistan
 SECP is like an Artificial Person.. It have
its own identity.. It have its common seal..
It can sue and be sued.. It can make
contracts of any type of buying and
selling.. It just like an Artificial Person…
and works like an Artificial Person…

7. Mr. Zafar Hijazi Chairman
SECP

8. Objective SECP
Objective is to develop a
 Modern and Efficient corporate sector
 Capital market
based on sound regulatory principles, in
order to encourage
 investment and foster economic growth
and prosperity in Pakistan

9. Registered Companies
 Registrations till 2014
62178 Companies
 Newly Registered in 2015
3588 Companies

10. Initially concerned of SECP
 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
private pensions.

11. Establishment of the
Commission
 Commission of SECP is consist of
Commissioners, including chairman.
 Commission is base on 5-7 members.

12. Commissioners
 Appointed by the Federal Government
 Be fixed by the Federal Government
 Expertise in
Securities market Law
Accountancy Economics
Finance [insurance] Industry
Commissioners shall always be of private sector
persons.

13. Head Office
 The head office of the Commission is in
Islamabad. The Commission may
establish and close down offices at such
other places in Pakistan as it considers
necessary.

14. The Chairman
 The Federal Government shall appoint
one of the Commissioners to be the
Chairman of the Commission.
(2-3 Years)
 The Chairman shall be the chief executive
officer of the Commission.

15. Term of office of the
Commissioners
 Term A Commissioners 2-3 years
(Include Chairman)
 Term B Commissioners 3-3 years
(Exclude Chairman)

16. Appointment of employees of the
Commission
 The Commission may, from time to time,
employ persons to be employees of the
Commission.
 Liable to disciplinary action in accordance
with the procedure laid down by the
Commission with the approval of the
Board.

17. Appointment of advisers and
consultants
The Commission may, employ and pay
consultants and agents and technical,
professional and other advisors
including, without limitation.
Bankers Stock-brokers
Surveyors Valuers
Accountants Lawyers

18. Delegation of the Commission’s
functions or powers
The Commission may, subject to such
conditions and limitations as it may deem
fit to impose, delegate any of its functions
or powers to one or more Commissioners
or any officer of the Commission.

19. Functions of SECP
 Standards making, review standard,
approved all accounting & auditing
standards.
 Domestic capital development.
 Furnished Information
 Certification of incorporation
 Rules regulation
 Over sight

20. Functions of SECP
It over sight various external service
provider to the corporate and financial
sector:
 Chartered Accountant
 Credit Rating Agencies
 Brokers
 Surveyors etc

21. International Memberships
 The SECP has been playing an active role
in the activities of International
Organization of Securities Commissions
(IOSCO).
 SECP is a member of the Emerging
Markets Committee (EMC)
 Working Group-3 (WG3)
 Working Group-2 (WG2)

22. Policy board
 Base on 9 members.
 Appoint by the federal government.
 Five ex-officio members
 Four from the private sector

23. The ex-officio members are:
 Secretary, Finance Division (Dr. waqar Masood Khan)
 Secretary, Law and Justice Division (Mr M Raza
Khan)
 Secretary, Commerce Division (Mr M Shehzad
Arbab)
 Chairman of the Commission (Mr Zafar Hijazi)
 Deputy Governor of the State Bank of
Pakistan (SBP) (Mr Saeed Ahmad)

25. Internal Audit Department
 Conduct independent and objective audits,
evaluations, investigations, and other reviews
of SECP programs and operations
 Prevent and detect fraud, and
mismanagement in SECP programs and
operations
 Offer expert assistance and advice whenever
required to improve SECP programs and
operations

26. Appellate Bench
The Appellate Bench of the SECP is
statutorily mandated to hear appeals filed
against the orders passed either by a
Commissioner or any other officer
authorized by the SECP

27. Company Law Division
 The Company Law Division is divided into
following two Departments:
 Corporatization & Compliance Department
 Corporate Supervision Department

28. Corporatization & Compliance
Department
 Is responsible for administration of the
Companies Ordinance 1984.
 Primary functions include registration of
companies.
 These functions are performed by the
eight regional offices & CRO of the SECP.

29. Corporate Supervision
Department
 The Corporate Supervision Department is
responsible for regulation and
enforcement of companies listed on stock
exchanges, public un-listed and private
companies having paid-up capital of Rs.
7.5 million and above and companies
formed under section 42 of the
Companies Ordinance, 1984 (except
insurance companies, non-banking
finance companies and modarabas)

30. Securities Market Division (SMD)
 The Securities Market Division (SMD) is
responsible for monitoring, regulating, and
developing the securities market.
 It regulates the primary and secondary
markets as well as market intermediaries
through registration, investigation,
enforcement, and rule making, with the
objective of protecting investors interest.

31. The Division consists of the
below mentioned departments
 Policy, Regulation and Development Department
 Market Supervision and Registration Department
 Market Surveillance and Special Initiative
Department

32. Policy, Regulation and
Development Department
 Stock Exchanges, Depository and Clearing
House Wing
 Commodities and Derivatives Wing
 Debt Capital Market Wing
 Capital Issues Wing

33. Market Supervision and
Registration Department
 Beneficial Ownership Wing
 Compliance and Inspection Wing
 Brokers’ Registration and Investor
Complaints Wing

34. Market Surveillance and Special
Initiative Department (MSSID)
 Market Surveillance Wing
 Special Initiative Wing

35. The Specialized Companies
Division
 The SCD strives to provide a regulatory
environment which is conducive for
development and promotion of a robust
Non-Bank Financial (NBF) Sector.

36. Policy, Regulation and
Development Department (PRD)
 PRD performs the functions of licensing,
registration, provision of comprehensive
regulatory framework and granting
necessary regulatory approvals to the
NBF sector.

37. Supervision and Enforcement
Department
 Supervision and Enforcement Department
is primarily responsible for centralized
functions.

38. The Insurance Division
 The Securities and Exchange Commission
of Pakistan has been regulating the
Insurance industry, since January 2001.
 The SECP regulates and monitors the
Insurance Sector in the country through
powers vested in the Insurance
Ordinance, 2000 and the Companies
Ordinance, 1984.

39. Role of SECP in Insurance
Sector
 Protection of the interest of insurance
policyholders.
 Availability of insurance protection to less
privileged segment of the society
(Microinsurance).
 Insurance Awareness Programs.
 Enhanced public image of the insurance
industry