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TRANSCRIPT
Group Members: (G)
Bilal Hussain K1F12MCOM0009Hafiz Salman K1F12MCOM0015Arshad K1F12MCOM0050Kishwar K1F12MCOM0005Adeel K1F12MCOM0048
Presented to: Sir Hassan ShahzadCorporate And Commercial Law
M.com2nd Semester
5
Adeel Reg#0048
What to Discuss… History About SECP Organization Commission Legal Departments Services Offered by SECP SECP Act 1997 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)
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
Continued….
It was concerned with the regulation of:
Corporate sector and capital market
Insurance CompaniesNon-Banking finance companies
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.
Hafiz SalmanReg#0015
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)
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
SERVICES Laws and Policies Registration Licensing Facilitation Monitoring & Compliance Enforcement Development Protection Corporate Laws
Regulations:
Corporate sector Capital market Insurance Non Banking sector Professional services
Bilal Hussain reg#0009
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
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
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
Continued….
PART VIII ENFORCEMENT AND INVESTIGATION
Investigation and proceedings by the Commission
Powers of the investigating officers of the Commission
Appeal to the Court
Continued…..
PART IX CONFIDENTIALITY OF INFORMATION
Obligation of confidentiality
PART X COGNIZANCE AND PROSECUTION OF OFFENCES
Cognizance of offences Conduct of prosecution(suit)
Continued…
PART XI RULES AND REGULATIONS
Power to make rules Power to make regulations
PART XII GENERAL Common seal Dissolution of the Authority
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.
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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.
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
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
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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,
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…
Stake Holders
Industry Association and Professional Bodies
NBFCS Credit Rating Companies Government Ministries &
Departments International Organizations