2. Group Members: (G)
Bilal Hussain K1F12MCOM0009
Hafiz Salman K1F12MCOM0015
Arshad K1F12MCOM0050
Kishwar K1F12MCOM0005
Adeel K1F12MCOM0048
Presented to: Sir Hassan Shahzad
Corporate And Commercial Law
M.com
2nd Semester

3. 5

4. Adeel
Reg#0048

5. What to Discuss…
 History
 About SECP
 Organization
 Commission
 Legal Departments
 Services Offered by SECP
 SECP Act 1997
 Organizational Structure
 Responsibilities
 Stakeholders of SECP

6. 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)

7. Introduction
 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

8. Continued….
 It was concerned with the regulation of:
 Corporate sector and capital market
 Insurance Companies
 Non-Banking finance companies
 Vision Statement
 Mission Statement
 Strategy

9. 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

10. 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)

11. 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

12. 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.

13. Hafiz Salman
Reg#0015

14. 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:
 Mr. Tahir Mehmood (Chairman)
 Mr Imtiaz Haider (Companies Division)
 M.Asif Arif (Insurance Division)
 Mr Zafar Abdullah ( Securities Market Division)

15. 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 Ms Bushra Aslam,
Secretary
 It coordinates the overall functioning of the SECP and liaises
with external entities:
 Including government agencies and international
organizations
 In addition, it supervises the internal monitoring function
within the SECP and is responsible for the management

16. SERVICES
 Laws and Policies
 Registration
 Licensing
 Facilitation
 Monitoring & Compliance
 Enforcement
 Development
 Protection
 Corporate Laws

17. Regulations:
 Corporate sector
 Capital market
 Insurance
 Non Banking sector
 Professional services

18. Bilal Hussain
reg#0009

19. SECP ACT 1997
 The SECP act 1997 has been divided into 12
parts which are given below.
 PART I PRELIMINARY
 Short title and commencement
 Definitions
 PART II THE COMMISSION
 Establishment of the Commission
 Head Office The Commissioners
 The Chairman

20. Continued….
 PART III THE BOARD
 The Securities and Exchange Policy Board
 Procedure of the Board
 PART IV CONFLICT OF INTEREST
 Disclosure of interest by Commissioners
 PART V DISQUALIFICATION,
REMOVAL, RESIGNATION AND
VACANCIES
 Disqualification of Members and removal

21. Continued……
 PART VI POWERS AND FUNCTIONS
 Powers and functions of the Commission
 Functions and powers of the Board
 PART VII FINANCE
 The Fund
 Expenditure to be charged on the Fund Annual
report

22. Continued….
 PART VIII ENFORCEMENT AND
INVESTIGATION
 Investigation and proceedings by the
Commission
 Powers of the investigating officers of the
Commission
 Appeal to the Court

23. Continued…..
 PART IX CONFIDENTIALITY OF
INFORMATION
 Obligation of confidentiality
 PART X COGNIZANCE AND
PROSECUTION OF OFFENCES
 Cognizance of offences
 Conduct of prosecution(suit)

24. Continued…
 PART XI RULES AND REGULATIONS
 Power to make rules
 Power to make regulations
 PART XII GENERAL
 Common seal
 Dissolution of the Authority

25. 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.

26. Arshad
reg#0050

27. 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. (Monitoring Behavior Of
mkt)
 To provide for the protection of investors,
regulation of markets and dealings in securities.

28. Specialized Company Division
 Regulates and monitors insurance companies, non-
banking finance companies, Modarabas
 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

29. 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

30. Kishwar
reg#0005

31. Responsibilities of SECP
 Regulating the issue of securities
 Regulating the business in Stock Exchange
 Supervising and monitoring the activities of any
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,

32.  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
Continued…

33. Stake Holders
 Industry Association and Professional Bodies
 NBFCS
 Credit Rating Companies
 Government Ministries & Departments
 International Organizations