NAME:

ARIBA AHMED 832 FMS/BSAF/F22

SARA SAEED 936 FMS/BSAF/F22
SHEHZEEN NASEER 887 FMS/BSAF/F22
MOAZMMA MIR 922 FMS/BSAF/F22
SUBJECT: CORPORATE LAW
PROJECT: SECP VISION AND MISSION
SUBMITTED TO: MAM SEHRISH SABA
 SECP MISSION AND VISION
SECP stands for Securities and Exchange Commission of Pakistan, which is the primary regulator of the securities
market in Pakistan.

Vision: SECP wants to create a modern, efficient, and transparent system for regulating the stock market and
companies in Pakistan.

Mission: SECP's goal is to protect investors, promote a fair and transparent market, and support economic growth.

KEY OBJECTIVES

1. Protect investors' interests

Protecting investors' interests involves safeguarding their rights, ensuring fair treatment, and preventing
fraudulent activities. This includes providing accurate and timely information, preventing insider trading, and
enforcing disclosure requirements. The goal is to ensure investors make informed decisions and maintain trust in
the market.

2. Promote market integrity and transparency

Promoting market integrity and transparency means ensuring the market operates fairly, efficiently, and with
accountability. This involves monitoring trading activities, enforcing rules, and providing clear information about
market operations. Transparency helps investors make informed decisions and maintains public trust.

3. Foster a competitive and vibrant capital market

Fostering a competitive and vibrant capital market encourages innovation, efficiency, and growth. This involves
promoting fair competition, reducing barriers to entry, and encouraging new listings and products. A vibrant
market provides opportunities for companies to raise capital, invest, and create jobs.

4. Support economic growth and development

Supporting economic growth and development involves creating a regulatory environment that encourages
investment, innovation, and job creation. This includes promoting access to capital, supporting small businesses
and entrepreneurs, and facilitating foreign investment. The goal is to contribute to the overall economic well-being
of the country.

5. Enhance regulatory framework and enforcement

Enhancing the regulatory framework and enforcement involves regularly reviewing and updating rules, guidelines,
and laws to ensure they remain effective and relevant. This includes strengthening enforcement mechanisms,
improving supervisory capabilities, and collaborating with international regulatory bodies to address emerging
risks and challenges.

STRATEGIC PRIORITY
1. Develop a robust regulatory framework

Developing a robust regulatory framework involves creating a clear, consistent, and comprehensive set of rules
and guidelines that govern the financial market. This includes reviewing and updating existing regulations, closing
loopholes, and introducing new measures to address emerging risks and challenges. A robust framework provides
clarity and certainty for market participants, protects investors, and promotes market integrity.

2. Enhance investor protection and awarenes

Enhancing investor protection and awareness involves implementing measures to safeguard investors' interests,
educate them about market risks and opportunities, and empower them to make informed decisions. This includes
introducing investor education programs, strengthening disclosure requirements, and enforcing strict standards for
market conduct and intermediaries.

3. Promote financial inclusion and literacy

Promoting financial inclusion and literacy involves expanding access to financial services, promoting financial
education, and empowering underserved segments of society to participate in the financial market. This includes
initiatives such as financial literacy programs, microfinance schemes, and inclusive banking initiatives that cater to
the needs of marginalized communities.

4. Support small and medium enterprises (SMEs

Supporting SMEs involves creating a conducive environment for them to grow, innovate, and access capital. This
includes initiatives such as simplified listing requirements, tax incentives, and access to alternative funding sources
like venture capital and crowdfunding. SMEs are the backbone of the economy, and supporting them can create
jobs, stimulate innovation, and drive economic growth.

5. Strengthen enforcement and compliance

Strengthening enforcement and compliance involves enhancing the regulatory body's capabilities to monitor,
detect, and prosecute market misconduct, fraud, and other violations. This includes investing in technology,
building expertise, and collaborating with international regulatory bodies to share best practices and address
cross-border challenges. Effective enforcement and compliance help maintain market integrity, protect investors,
and promote trust in the financial system.

Is SECP's vision and mission aligned with Pakistan's economic growth goals?

SECP's vision and mission are aligned with Pakistan's economic growth goals in the following ways ¹ ²:

- Shielding the economy: One of SECP's objectives is to shield the economy, which aligns with Pakistan's goal of
achieving sustainable and inclusive growth.

- Boosting economic growth: A strong corporate sector can boost sustained and shared economic growth, which
can withstand economic shocks.

- Developing modern and efficient corporate sector and capital market: SECP aims to develop a modern and
efficient corporate sector and capital market, based on sound regulatory principles, which can provide impetus for
high economic growth.

- Promoting Islamic Finance: SECP's ultimate objective is to create a standardized and harmonized regulatory and
supervisory framework for Islamic Finance, which can contribute to Pakistan's economic growth goals.

Are SECP's objectives and strategic priorities effective in protecting investors and promoting market
integrity?

SECP's objectives and strategic priorities are effective in protecting investors and promoting market integrity in the
following ways:

- Investor Protection: SECP's objectives prioritize investor protection through measures like enhancing investor
awareness, strengthening regulatory oversight, and enforcing strict standards for market conduct and
intermediaries.
- Market Integrity: SECP's strategic priorities aim to promote market integrity by developing a robust regulatory
framework, enhancing enforcement and compliance, and promoting financial inclusion and literacy.

- Risk-based approach: SECP adopts a risk-based approach to regulation, focusing on high-impact areas and
emerging risks, ensuring proactive measures to mitigate potential threats to investors and market integrity.

- Collaboration and international cooperation: SECP collaborates with international regulatory bodies, sharing
best practices and addressing cross-border challenges, further enhancing investor protection and market integrity.

- Regulatory reforms and updates: SECP regularly reviews and updates regulations to address emerging issues,
closing loopholes and ensuring the regulatory framework remains effective and relevant.

However, like any regulatory body, SECP faces challenges and limitations, such as:

- Limited resources

- Evolving market dynamics

- Emerging risks and challenges

To further enhance its effectiveness, SECP could consider:

- Strengthening enforcement and compliance capabilities

- Enhancing investor education and awareness initiatives

- Fostering greater collaboration with market stakeholders

- Continuously reviewing and updating regulations to address emerging issues

Overall, SECP's objectives and strategic priorities provide a solid foundation for protecting investors and promoting
market integrity, and with continuous improvement and adaptation, can effectively address evolving challenges
and market dynamics.

How can SECP improve its regulatory framework and enforcement to support economic development?

SECP can improve its regulatory framework and enforcement to support economic development by:

1. Streamlining regulations: Simplify and rationalize regulations to reduce compliance costs and facilitate ease of
doing business.

2. Risk-based approach: Adopt a risk-based approach to regulation, focusing on high-impact areas and emerging
risks.

3. Enhancing enforcement capabilities: Strengthen enforcement and compliance capabilities through technology,
training, and resources.
4. Collaboration and international cooperation: Collaborate with international regulatory bodies, sharing best
practices and addressing cross-border challenges.

5. Regular review and updates: Regularly review and update regulations to address emerging issues, closing
loopholes and ensuring the regulatory framework remains effective and relevant.

6. Stakeholder engagement: Foster greater collaboration with market stakeholders, including investors, issuers,
and intermediaries, to ensure regulations are effective and responsive to market needs.

7. Technology adoption: Leverage technology to enhance regulatory efficiency, improve compliance monitoring,
and facilitate data-driven decision-making.

8. Capacity building: Invest in human capital development, training, and capacity building to ensure regulators are
equipped to address emerging challenges.

9. Whistleblower protection: Establish a robust whistleblower protection framework to encourage reporting of

market misconduct and fraud.

10. Economic growth focus: Prioritize initiatives that support economic growth, such as facilitating access to
capital, promoting financial inclusion, and supporting SME development.

By implementing these measures, SECP can create a more effective and efficient regulatory framework that
supports economic development, promotes market integrity, and protects investors.

SECP strategies to achieve key objectives,:

1. Protect investors' interests:

- Implement robust disclosure requirements

- Enforce strict standards for market conduct and intermediaries

- Establish an investor compensation fund

- Promote investor education and awareness

2. Promote market integrity and transparency:

- Implement a robust surveillance system

- Enforce strict insider trading regulations

- Promote transparency through regular disclosure

- Establish a whistleblower protection framework

3. Foster a competitive and vibrant capital market:

- Simplify listing requirements

- Encourage innovation and new products

- Foster a culture of entrepreneurship and innovation

- Promote competition among market intermediaries

4. Support economic growth and development:

- Facilitate access to capital for SMEs and start-ups

- Promote financial inclusion and literacy

- Support infrastructure development

- Encourage foreign investment

5. Enhance regulatory framework and enforcement:

- Regularly review and update regulations

- Strengthen enforcement capabilities

- Implement a risk-based approach to regulation

- Foster international cooperation and collaboration

By pursuing these strategies, SECP can effectively achieve its key objectives and promote a vibrant and inclusive
capital market that supports economic growth and development.

Difference between mission and vision of SECP

Mission of SECP:
- Protect investors' interests

- Promote market integrity and transparency

- Foster a competitive and vibrant capital market

- Support economic growth and development

- Enhance regulatory framework and enforcement

- Protect investors' interests:

- Ensure fair treatment of investors

- Prevent fraudulent activities

- Provide accurate and timely information

- Encourage investor education and awareness

- Promote market integrity and transparency:

- Enforce strict standards for market conduct

- Prevent insider trading and market manipulation

- Promote transparency through regular disclosure

- Encourage whistleblowing and reporting of market misconduct

- Foster a competitive and vibrant capital market:

 - Encourage innovation and new products

- Promote competition among market intermediaries

- Support infrastructure development

- Encourage foreign investment and participation

- Support economic growth and development:

- Facilitate access to capital for SMEs and start-ups

- Promote financial inclusion and literacy

- Support infrastructure development

- Encourage foreign investment and participation

- Enhance regulatory framework and enforcement:

- Regularly review and update regulations

- Strengthen enforcement capabilities

- Implement a risk-based approach to regulation

- Foster international cooperation and collaboration

Vision of SECP:

- To be a leading regulatory body that promotes a vibrant and inclusive capital market

- To be a catalyst for economic growth and development

- To be a champion for investor protection and market integrity

- To be a model for regulatory excellence and innovation

- To be a partner for international cooperation and collaboration

- o be a leading regulatory body:

- Set high standards for regulatory excellence

- Encourage innovation and best practices

- Foster a culture of continuous improvement

- To be a catalyst for economic growth and development:

- Support infrastructure development

- Encourage foreign investment and participation

 - Promote financial inclusion and literacy

- To be a champion for investor protection and market integrity:

- Ensure fair treatment of investors

- Prevent fraudulent activities

- Encourage investor education and awareness

- To be a model for regulatory excellence and innovation:

- Implement cutting-edge regulatory technologies

- Foster a culture of innovation and experimentation

- Encourage international cooperation and collaboration

- To be a partner for international cooperation and collaboration:

- Collaborate with international regulatory bodies

- Share best practices and expertise

- Participate in global regulatory initiatives

INVESTOR PROTECTION:
1. INVESTOR EDUCATION AND AWARENESS PROGRAMS:

Investor education and awareness programs are crucial for empowering individuals to make
informed financial decisions. These initiatives typically provide resources, workshops, and
materials to help people understand investment options, risks, and strategies.

2. COMPLAINT HANDLING AND RESOLUTION MECHANISM:

A complaint handling and resolution mechanism is essential for maintaining trust and integrity in
any organization. It involves having clear procedures in place for customers or clients to raise
concerns or issues they encounter, and a structured process for addressing and resolving those
complaints in a timely and fair manner.

3. INVESTOR COMPENSATION FUND:

An investor compensation fund is a safety net established by regulatory authorities to protect

investors in case of financial loss due to the insolvency or misconduct of a financial institutions.
The fund is typically funded by contributions from the financial industry and serves as a crucial
layer of protection to enhance investor confidence in the financial markets.
 4. ENFORCEMENT ACTIONS AGAINST FRAUDULENT ACTIVITIES:

Enforcement actions against fraudulent activities are essential for maintaining the integrity and
stability of financial markets. Regulatory agencies and law enforcement authorities investigate
and prosecute individuals or entities engaged in fraudulent practices such as insider trading,
market manipulation, and securities fraud.

MARKET DEVELOPMENT :
1. PROMOTING LISTING AND TRADING OF SECURITIES:
Promoting the listing and trading of securities is crucial for fostering liquidity, efficiency, and
transparency in financial markets. This involves initiatives by stock exchanges, regulatory bodies,
and financial institutions to encourage companies to list their securities for public trading.
These initiatives may include:

1. Providing a streamlines listing process with clear requirements and guidelines.

2. Offering incentives such as reduced listing fees or access to capital raising opportunities.

3. Engaging in marketing and outreach efforts to attract potential issuers.

2. DEVELOPMENT OF DEBT AND EQUITY MARKETS:

The development of debt and equity markets is crucial for a robust and dynamic financial
system.

1. DEBT MARKETS:

These markets facilitate the buying and selling of debt instruments such as bonds, loans, and
other fixed income securities.

1. EQUITY MARKET:

Equity markets enable the buying and selling of ownership stakes in publicly traded companies.
They provide a platform for companies to raise capital by issuing shares to investors.

2. INTRODUCTION OF NEW FINANCIAL INSTRUMENTS:

The introduction of new financial instruments is a key driver of innovation and growth in the
financial industry. These instruments can take various forms, including derivatives, structured
products.

3. MARKET DEMAND:
The development of new financial instruments often begins with identifying unmet needs or
market inefficiencies.

4. REGULATORY APPROVAL:
 Before new financial instruments can be introduced to the market, they must often undergo
regulatory review and approval.

5. PRODUCT DESIGN:
Once a market opportunity is identified, financial instruments that address specific investor
needs or market gaps.

6. ENCOURAGING FOREIGN INVESTMENT:

Encouraging foreign investment can boost economic growth, create job opportunities, and
foster innovation.

ENFORCEMENT AND COMPLIANCE:

1. MONITORING AND INSPECTION OF REGULATED ENTITIES:

Monitoring and inspection of regulated entities involves routine evaluations. Authorities
conduct audits, site visits, and review reports to verify adherence to standards, identify
violations, and enforce corrective actions.

2. ENFORCEMENT ACTIONS AGAINST NON COMPLIANCE:

Enforcement actions against non-compliance include:
1. Issuing warnings or citations.
2. Imposing fines or penalties.
3. Mandating corrective actions.
4. Implementing injunctions to halt operations.

3. REGULATORY SANDBOX FOR INNOVATION AND TESTING:

A regulatory sandbox enables businesses to test innovative products, services, or business
models in a controlled environment under regulatory supervisions. It allows for real-world
experimentation while ensuring compliance with legal standards.

INTERNATIONAL COOPERATION:
1. MEMBERSHIP OF INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS (IOSCO):
The international organization of securities commissions is a global cooperative of securities
regulatory agencies. Its membership includes regulatory bodies form over 115 jurisdictions,
covering more than 95%of the world’s securities markets.

2. COLLABORATION WITH REGIONAL AND INTERNATIONAL REGULATORY BODIES:

 Collaboration with regional and international regulatory bodies involves sharing information,
harmonizing standards, and coordinating enforcement actions.

3. IMPLEMENTATION OF INTERNATIONAL BEST PRACTICES:

The implementation of international best practices involves adopting globally recognized
standards and procedures to enhance regulatory frameworks and operational efficiency.
1. BENCHMARKING:
Assessing current practices against international standards set by organization like IOSCO, Basel
committee.
2. REGULATORY HARMONIZATION:
Aligning local laws and regulations with global norms to ensure consistency and compliance.

CONCULATION:
SECP’S mission focuses on protecting investors, promoting markets integrity, fostering a vibrant
capital market, supporting economic growth, and enhancing regulatory framework and
enforcement. Meanwhile, its vision is to be a leading regulatory body that promotes a vibrant and
inclusive capital market, acts as a catalyst for economic growth and development, champions
investor protection and market integrity, serves as a model for regulatory excellence and
innovation, and partners for international cooperation and collaboration. While the mission
outlines specific objectives and actions, the vision sets broader aspirations and long term goals for
SECP.