2. Group Members: Muhammad Ahmed MBK-06-42 Muhammad Dilshad Ali MBK-06-07
Ghulam Musftafa MBK-06-36
Presented to: Sir Javed Iqbal
Investment & Portfolio Management
MBA (Banking & Finance)
3rd Semester

4. MUHAMMAD AHMED MBK-06-42

5. What to Discuss… History About SECP Organization Commission
Legal Departments
Services Offered by SECP
Market Divisions
Securities Market Division
Specialized company Division
Finance & Admin Division
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: Vision Statement
Corporate sector and capital market
Insurance Companies
Non-Banking finance companies
Private pensions
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. MUHAMMAD DILSHAD ALI MBK-06-07

15. 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. RAZI-UR-RAHMAN KHAN
MR. SALMAN ALI SHAIKH
MR. RASHID I MALIK
MR. S. TARIQ A. HUSSAIN

16. 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 MR. ABDUL REHMAN QURESHI, Secretary
It coordinates the overall functioning of the SECP and liaises with external entities:
Including government agencies and multilateral and international organizations
In addition, it supervises the internal monitoring function within the SECP and is responsible for the management
The internal audit function is headed by the Director

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

18. Regulations: Corporate sector Capital market Insurance
Non Banking sector
Pensions
Professional services

19. 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.

20. GHULAM MUSFTAFA MBK-06-36

21. 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.
To provide for the protection of investors, regulation of markets and dealings in securities.

22. Specialized Company Division
Regulates and monitors insurance companies, non-banking finance companies, Modarabas and private pensions
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

23. 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

24. Responsibilities of SECP
Regulating the issue of securities
Regulating the business in Stock Exchange and any other securities markets;
Supervising and monitoring the activities of any central depository and 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, portfolio managers

25. Continued…
Promoting and regulating self-regulatory organizations including securities industry and related organizations such as Stock Exchanges and associations of mutual funds, leasing companies and other NBFIs
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
Conducting research in respect of any of the matters set out in this sub-section

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