What to Discuss…What to Discuss… HistoryHistory About SECPAbout SECP OrganizationOrganization CommissionCommission Legal DepartmentsLegal Departments Services Offered by SECPServices Offered by SECP Market DivisionsMarket Divisions

Securities Market DivisionSecurities Market Division Specialized company DivisionSpecialized company Division Finance & Admin DivisionFinance & Admin Division

Organizational StructureOrganizational Structure ResponsibilitiesResponsibilities Stakeholders of SECPStakeholders of SECP

SECP, ACT 1997SECP, ACT 1997

GHULAM MURTAZA KORAIGHULAM MURTAZA KORAI

IoBMIoBM

HistoryHistory The Securities and Exchange Commission of Pakistan The Securities and Exchange Commission of Pakistan

was created to succeed the Corporate Law Authority was created to succeed the Corporate Law Authority

an attached Department of the Ministry of Finance an attached Department of the Ministry of Finance

process of restructuring the Authority was initiated in process of restructuring the Authority was initiated in 1997 under the Capital Market Development Plan of under the Capital Market Development Plan of the (ADB). the (ADB).

SECP Act was passed by the Parliament and SECP Act was passed by the Parliament and promulgated in December 1997 promulgated in December 1997

Act gave the administrative authority and financial Act gave the administrative authority and financial independence to carry out the reform program of independence to carry out the reform program of Pakistan’s capital market with the assistance of (ADB)Pakistan’s capital market with the assistance of (ADB)

IntroductionIntroduction The Securities and Exchange Commission of The Securities and Exchange Commission of

Pakistan (SECP) is an organization whose Pakistan (SECP) is an organization whose purpose is to develop a modern and efficient purpose is to develop a modern and efficient

corporate sector and a sector and a capital market based based on sound regulatory principles, in order to on sound regulatory principles, in order to foster foster

economic growtheconomic growth and prosperity in and prosperity in Pakistan.Pakistan.

SECP Act 1997SECP Act 1997 This Act institutionalized certain policy This Act institutionalized certain policy

decisions relating to the constitution and decisions relating to the constitution and structure, powers, and functions of the SECP structure, powers, and functions of the SECP

Operational in Jan 1999Operational in Jan 1999

Continued….Continued….

It was concerned with the It was concerned with the regulation of:regulation of:

Corporate sector and capital marketCorporate sector and capital market Insurance CompaniesInsurance Companies Non-Banking finance companiesNon-Banking finance companies Private pensionsPrivate pensions

Vision StatementVision Statement Mission StatementMission Statement StrategyStrategy

OrganizationOrganization

The Policy BoardThe Policy Board main objective of the Policy Board is to main objective of the Policy Board is to

provide guidance to the Commission in all provide guidance to the Commission in all mattersmatters

relating to its functions and to formulate relating to its functions and to formulate policies in consultation with the Commission policies in consultation with the Commission

Policy Board is also responsible for advising Policy Board is also responsible for advising the Government on matters falling within the Government on matters falling within the purview of the Act and other corporate the purview of the Act and other corporate lawslaws

Policy Board …..Policy Board ….. Policy Board consist of a maximum Policy Board consist of a maximum

of nine members appointed by the of nine members appointed by the Federal GovernmentFederal Government

five ex-officio members and four five ex-officio members and four from the private sectorfrom the private sector ex-officio members areex-officio members are Secretary, Finance Division; Secretary, Finance Division; Secretary, Law and Justice Division; Secretary, Law and Justice Division; Secretary, Commerce Division; Secretary, Commerce Division; Chairman of the Commission; and Chairman of the Commission; and Deputy Governor of the State Bank of Deputy Governor of the State Bank of

Pakistan (SBP)Pakistan (SBP)

International International Memberships Memberships

SECP has been playing an active role in the SECP has been playing an active role in the activities of International Organization of activities of International Organization of Securities Commissions (IOSCO)Securities Commissions (IOSCO)

to cooperate together to promote high to cooperate together to promote high standards of regulation standards of regulation

to exchange information on their respective to exchange information on their respective experiences in order to promote the experiences in order to promote the development of domestic markets development of domestic markets

to unite their efforts to establish standards to unite their efforts to establish standards and an effective surveillance of international and an effective surveillance of international securities transactions securities transactions

Memorandum of Memorandum of Understanding between Understanding between

SBP and SECPSBP and SECP SBP is entrusted with the responsibility of SBP is entrusted with the responsibility of

promoting monetary and financial stability promoting monetary and financial stability and fostering a sound and dynamic banking and fostering a sound and dynamic banking system, by regulating and supervising it, to system, by regulating and supervising it, to safeguard the interest of stakeholders.safeguard the interest of stakeholders.

SECP has now given the responsibility of SECP has now given the responsibility of regulating the NBFIs, regulation of Corporate regulating the NBFIs, regulation of Corporate sector, capital markets and insurance sector. sector, capital markets and insurance sector.

To share information and work towards the To share information and work towards the holistic development of the financial sector in holistic development of the financial sector in supervision of banks/DFIs and NBFCs supervision of banks/DFIs and NBFCs operating in Pakistan.operating in Pakistan.

The Commission:The Commission:

Commission is a collegiate body with Commission is a collegiate body with collective responsibility collective responsibility

Operational and executive authority of the Operational and executive authority of the Commission is vested in the Chairman who Commission is vested in the Chairman who is (CEO). is (CEO).

The Commission presently consists of The Commission presently consists of three Commissioners including the three Commissioners including the Chairman:Chairman:

MR. RAZI-UR-RAHMAN KHANMR. RAZI-UR-RAHMAN KHAN MR. SALMAN ALI SHAIKHMR. SALMAN ALI SHAIKH MR. RASHID I MALIKMR. RASHID I MALIK MR. S. TARIQ A. HUSSAINMR. S. TARIQ A. HUSSAIN

The Commission The Commission Secretariat:Secretariat:

To assist the Chairman of the SECP and To assist the Chairman of the SECP and external entities, in achieving the objectives of external entities, in achieving the objectives of the SECP in an efficient and holistic mannerthe SECP in an efficient and holistic manner

The Commission Secretariat is headed by The Commission Secretariat is headed by MR. MR. ABDULABDUL REHMAN QURESHI REHMAN QURESHI, Secretary, Secretary

It It coordinates the overall functioning of the SECP coordinates the overall functioning of the SECP and liaises with external entities:and liaises with external entities:

Including government agencies and Including government agencies and multilateral and international organizations multilateral and international organizations

In addition, it supervises the internal In addition, it supervises the internal monitoring function within the SECP and is monitoring function within the SECP and is responsible for the management responsible for the management

The internal audit function is headed by the The internal audit function is headed by the DirectorDirector

SERVICESSERVICES Laws and PoliciesLaws and Policies RegistrationRegistration LicensingLicensing FacilitationFacilitation Monitoring & ComplianceMonitoring & Compliance EnforcementEnforcement DevelopmentDevelopment ProtectionProtection Corporate LawsCorporate Laws

Regulations:Regulations:

Corporate sectorCorporate sector Capital marketCapital market InsuranceInsurance Non Banking sectorNon Banking sector PensionsPensions Professional servicesProfessional services

The Legal The Legal DepartmentDepartment

Legal Department is Legal Department is headed by the Executive headed by the Executive Director Director

It operates under the It operates under the direct guidance of the direct guidance of the Chairman Chairman

to manage the legal to manage the legal affairs of SECP and affairs of SECP and provide impartial legal provide impartial legal advice to each advice to each operational Division and operational Division and Department of the SECP.Department of the SECP.

Securities Market Securities Market DivisionDivision

It is responsible for the regulation of all It is responsible for the regulation of all aspects of the securities market aspects of the securities market including:including:

licensing and coordination licensing and coordination regulation of secondary market regulation of secondary market public offerings public offerings market intermediaries market intermediaries market surveillance. market surveillance.

To provide for the protection of To provide for the protection of investors, regulation of markets and investors, regulation of markets and dealings in securities.dealings in securities.

Specialized Company Specialized Company DivisionDivision

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

Specialized Companies Division seeks to Specialized Companies Division seeks to provide a conducive regulatory environment provide a conducive regulatory environment

To foster growth in the non-banking To foster growth in the non-banking financial sector, safeguard the financial financial sector, safeguard the financial system system

Protect the interests of shareholders, Protect the interests of shareholders, depositors and policyholders under the depositors and policyholders under the relevant laws relevant laws

Finance & Admin Finance & Admin Division Division

Responsible for directing and Responsible for directing and controlling the areas of accounting, controlling the areas of accounting, facilitating overall operations of the facilitating overall operations of the SECP and ensuring its smooth SECP and ensuring its smooth functioning. functioning.

division has been organized into the division has been organized into the following departments:following departments:

Finance & Accounts DepartmentFinance & Accounts Department Administration DepartmentAdministration Department

Responsibilities of SECPResponsibilities of SECP

Regulating the issue of securities Regulating the issue of securities Regulating the business in Stock Exchange Regulating the business in Stock Exchange

and any other securities markets; and any other securities markets; Supervising and monitoring the activities of Supervising and monitoring the activities of

any central depository and stock exchange any central depository and stock exchange clearing house clearing house

registering and regulating the working of registering and regulating the working of stock brokers, sub brokers, share transfer stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of agents, bankers to an issue, trustees of trust deeds, registrars to an issue, trust deeds, registrars to an issue, underwriters, portfolio managers underwriters, portfolio managers

Promoting and regulating self-regulatory Promoting and regulating self-regulatory organizations including securities industry and organizations including securities industry and related organizations such as Stock Exchanges related organizations such as Stock Exchanges and associations of mutual funds, leasing and associations of mutual funds, leasing companies and other NBFIscompanies and other NBFIs

Promoting investors education and training of Promoting investors education and training of intermediaries of securities markets intermediaries of securities markets

Regulating substantial acquisition of shares and Regulating substantial acquisition of shares and the merger and take-over of companies the merger and take-over of companies

Encouraging the organized development of the Encouraging the organized development of the capital market and the corporate sector in capital market and the corporate sector in Pakistan Pakistan

Conducting research in respect of any of the Conducting research in respect of any of the matters set out in this sub-section matters set out in this sub-section

Continued…Continued…

Stake HoldersStake Holders

Industry Association and Professional Bodies

NBFCS Credit Rating Companies Government Ministries &

Departments International Organizations