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Group Members:. Muhammad Ahmed MBK-06-42 Muhammad Dilshad AliMBK-06-07 Ghulam MusftafaMBK-06-36 Presented to:Sir Javed Iqbal Investment & Portfolio Management MBA (Banking & Finance) 3rd Semester. MUHAMMAD AHMED MBK-06-42. What to Discuss…. History About SECP Organization

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Group Members:

Muhammad Ahmed MBK-06-42

Muhammad Dilshad AliMBK-06-07

Ghulam MusftafaMBK-06-36

Presented to:Sir Javed Iqbal

Investment & Portfolio Management

MBA (Banking & Finance)

3rd Semester


What to Discuss…

  • History

  • About SECP

  • Organization

  • Commission

  • Legal Departments

  • Services Offered by SECP

  • Market Divisions

    • Securities Market Division

    • Specialized company Division

    • Finance & Admin Division

  • Organizational Structure

  • Responsibilities

  • Stakeholders of SECP

  • History

    • The 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 Pakistan’s capital market with the assistance of (ADB)


    • The 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 1997

  • This 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 market

      • Insurance Companies

      • Non-Banking finance companies

      • Private pensions

  • Vision Statement

  • Mission Statement

  • Strategy

  • Organization

    The Policy Board

    • main objective of the Policy Board is to provide guidance to the Commission in all matters

    • relating 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 Government

    • five 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)

    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:





    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 manner

    • The Commission Secretariat is headed by MR. ABDUL REHMAN QURESHI, 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


    • Laws and Policies

    • Registration

    • Licensing

    • Facilitation

    • Monitoring & Compliance

    • Enforcement

    • Development

    • Protection

    • Corporate Laws


    • Corporate sector

    • Capital market

    • Insurance

    • Non Banking sector

    • Pensions

    • Professional 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 Division

    • It 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 Division

    • Regulates and monitors insurance companies, non-banking finance companies, Modarabas and private pensions

    • Specialized 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 Department

      • Administration 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 NBFIs

    • Promoting 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

    Stake Holders

    • Industry Association and Professional Bodies

    • NBFCS

    • Credit Rating Companies

    • Government Ministries & Departments

    • International Organizations

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