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

MUHAMMAD AHMED MBK-06-42

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

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: Vision Statement Corporate sector and capital market Insurance Companies Non-Banking finance companies Private pensions 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.

MUHAMMAD DILSHAD ALI MBK-06-07

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

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

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

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

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.

GHULAM MUSFTAFA MBK-06-36

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.

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

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

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

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

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