Group 2

Aazam Nawaz Farah Tayaba Hanya Malik Zeshan Iqbal Faiz Aalam Aamir Raza

Before SECP…Corporate Law Authority (CLA)

Before SECP…: Corporate Law Authority was control the

Corporation Sector under the ministry of finance till 1997.

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

Securities and Exchange Commission of Pakistan

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

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…

Mr. Zafar Hijazi Chairman SECP

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

Registered Companies

Registrations till 2014

62178 Companies

Newly Registered in 2015

3588 Companies

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.

Establishment of the Commission

Commission of SECP is consist of Commissioners, including chairman.

Commission is base on 5-7 members.

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.

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.

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.

Term of office of the Commissioners

Term A Commissioners 2-3 years

(Include Chairman)

Term B Commissioners 3-3 years

(Exclude Chairman)

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.

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

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.

Functions of SECP

Standards making, review standard, approved all accounting & auditing standards.

Domestic capital development. Furnished Information Certification of incorporation Rules regulation Over sight

Functions of SECP

It over sight various external service provider to the corporate and financial sector:

Chartered Accountant Credit Rating Agencies Brokers Surveyors etc

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)

Policy board

Base on 9 members. Appoint by the federal government.

Five ex-officio members Four from the private sector

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)

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

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

Company Law Division

The Company Law Division is divided into following two Departments:

Corporatization & Compliance Department Corporate Supervision Department

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.

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)

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.

The Division consists of the below mentioned departments

Policy, Regulation and Development Department

Market Supervision and Registration Department

Market Surveillance and Special Initiative Department

Policy, Regulation and Development Department

Stock Exchanges, Depository and Clearing House Wing

Commodities and Derivatives Wing Debt Capital Market Wing Capital Issues Wing

Market Supervision and Registration Department Beneficial Ownership Wing Compliance and Inspection Wing Brokers’ Registration and Investor

Complaints Wing

Market Surveillance and Special Initiative Department (MSSID) Market Surveillance Wing Special Initiative Wing

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.

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.

Supervision and Enforcement Department Supervision and Enforcement Department

is primarily responsible for centralized functions.

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.

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