Group Members

Hassan Abbas Hafiz Islam Aslam Muhammad Suleman

Presentation Outline
What is SECP History SECP Mandate Commission (Formation) Organizational Structure of SECP Data and Information at SECP Division of SECP International Relationship Status Users of SECP Data SECP and 18th Amendment Policy Board Members Powers and Functions of Commission of Policy Board Powers and Function of Policy Board

Introduction
The SECP is a government agency falls under Ministry of Finance Its purpose is to develop a modern and efficient
corporate sector and a capital market based on sound regulatory principles, to foster economic growth and prosperity in Pakistan.

History
The Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority (CLA). CLA was restructured under the Capital Market Development Plan of the Asian Development Bank (ADB). A Securities and Exchange Commission of Pakistan Act was passed by the Parliament and promulgated in December 1997. Act becomes operational on January 1 1999.

SECPs Mandate
Commission's mandate includes
        Investment Financial Services, Leasing Companies, Housing Finance Services, Venture Capital Investment, Discounting Services, Investment Advisory Services, Real Estate Investment Companies and Asset Management Services.

The Commission also regulates various external service providers

 Chartered Accountants,  Rating Agencies, etc.

Organization Structure of SECP

Data and Information at the SECP

SECP holds data and information of over 57,689 registered companies registered with SECP up to December 31st,2010. Nature and type of information being compiled and stored is largely inline with needs and requirements of SECP and its major departments. 1. Registration 2. Enforcement 3. Securities Market & Surveillance 4. NBFC 5. Insurance 6. Finance & Administration

Data and Information at the SECP

Various types of IT applications have been implemented and are under development by the SECP to capture data/information, and promote IT use. Some examples of the systems in place are:
1. Company Registration and Compliance System Registration Department 2. Enforcement & Monitoring System Enforcement Department 3. Regulatory and Compliance System for NBFCs - NBFC 4. Regulatory System for Insurance - Insurance 5. Brokers and Agents Registration and Management System Securities Market 6. CRCS Company Registration and Compliance System for Online registration and filing system

Users SECP Data

Users and stakeholders of SECP data range from 1. 2. 3. 4. 5. 6. 7. Government organizations and ministries Private companies State Bank of Pakistan FBR Federal Bureau of Statistics Credit Rating Agencies Students for Research

Status after 18th amendment to the 1973 constitution of Pakistan

18th amendments concurrent legislative list. subject 6 to 11 and 26 to 28 of the list deal with corporate law, registration and regulation, it is expected that the SECP will be disbanded once the 18th amendment becomes law

HAFIZ ISLAM ASLAM

Division of SECP
The work of the Commission has been distributed amongst its six divisions, each of which is headed by an Executive Director and divided into Wings for effective administration. The Divisions are:
Securities Market Division Specialized Companies Company Law Administration Division Enforcement Division Insurance Division Support Services Division

Division of SECP
Securities Market Division
The Securities Market Division (SMD) is responsible for regulation of all aspects of the securities market. Brokers and registration Market Monitoring and Surveillance Investor Complaints Beneficial Ownership Capital Issues Stock Exchange

Division of SECP
Enforcement and Monitoring Division
Accounts Investigation Compliance and Prosecution Company Law Administration Division Coordination and Liaison Regulation and Compliance Enforcement, Investigation and Prosecution Licensing, Approvals and Appeals

Division of SECP
Insurance Division Actuarial Services Life Insurance Prudential Supervision Non-life Insurance Prudential Supervision Market Conduct Supervision Enforcement and Prosecution Support Services Division Human Resource Administration Finance and Accounts

Division of SECP
Specialized Companies Division
The Specialized Companies Division (SCD) is responsible for regulation of leasing companies, modarba companies, mutual funds and other specialized companies (except insurance companies). Its functions include licensing, monitoring, regulatory compliance and enforcement of all applicable laws. Leasing Modarba companies Mutual funds and other specialized companies

International Status
SECP has been playing an active role in the activities of International Organization of Securities Commissions 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

Securities and Exchange 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 Members

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)

Commissioners
1. Establishment of Commission 2. The Commissioners
Shall consist of not less than five and more than seven The majority shall always be of private sector persons Conduct its proceeding in accordance with the regulation made by the commission Shall be paid remuneration and allowances determine & approved by the board

Commissioners (contd)
3. The Chairman
One of the commissioner as chairman and not more than two consecutive terms.

4. CEO of the commission

Responsible for day to day affairs of the commission.

MUHAMMAD SULEMAN

Powers and Functions

Powers:
The ability to do something or act in a particular way is called powers.

Functions:
Work or operate in a proper or particular way is known as functions.

Powers of Commission
Commission shall have all the powers which are necessary to perform its duties,
The Commission may check all matters time to time, identify the matters requiring the Board to make polices and decisions. May control issue of securities by law. Commission have power to control all the corporate bodies and cancel registration of any body with legal reason.

Functions of Commission
Regulating the issue of securities. Regulating the business in Stock Exchanges and any other securities markets. supervising and monitoring the activities of any central depository. supervising and monitoring Stock Exchange, clearing house.

Professional Functions of Commission buyer and sellers

Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, underwriters, and such other intermediaries who may Person not being a be associated with the securities markets in any member of a stock manner. exchange but acts on behalf of Proposing regulationsa stock-broker registration and for the as an regulating the working agent Collective Investment of schemes.
A collective investment scheme is a way of investing money with others to participate in a wider range of investments.

Functions of Commission
Commission also conduct investigations in respect of matters related to the Ordinance. Considering to reforms law and commission also give suggestions to make changes in rules relating to companies and bodies corporate. Promoting investors education and training of intermediaries of securities markets;

Functions of Commission
Encouraging the organized development of the capital market and the corporate sector in Pakistan. Commission give approvals if,
1. 2. 3. All public companies incorporate in Pakistan and want issue their securities outside of Pakistan. Companies incorporate outside of Pakistan and want to issue their securities in Pakistan. All bodies incorporate outside of Pakistan and already listed in stock exchange of Pakistan and want to issue additional securities.

Board
Commission Board:
Board is the selected members of the commission appointed by the Federal Government. Board also make policies for commission and pass it from Federal Government and impose on commission.

Commission

Board

Federal Government

Powers and Functions of Board

Board after consultation with the Commission Advice to the federal government. Establish the policy of the Commission and monitor and oversee its implementation. Express its opinion in writing on any policy matter referred to it by the Federal Government or the Commission

Powers and Functions of Board

Monitor and oversee the Commissioners management of the Commission ensuring that,
1. The Commissions resources are utilized economically and efficiently. 2. The Commission is operated in accordance with principles of board or federal government. 3. The Commission fulfils its statutory obligations and properly discharges its functions

 Approve (with or without modification) the budget for each financial year of Commission, prepared and submitted to the Federal Government . And perform all the instruction, instructed by Federal Government.