The Securities & Exchange Commission of Pakistan (SECP) is the regulatory body for the securities and exchange business in Pakistan. Its primary objectives are to foster investment and promote economic growth in the country. It also aims to create an efficient and modern corporate sector. Its website provides a wealth of information about the commission and its functions.
Financial Regulatory Authority
The Foreign Private Investment Promotion and Protection Act of 1976 and the Furtherance and Protection of Economic Reforms Act of 1992 provide legal protection to foreign investors. The latter act stipulates that foreign investors in Pakistani firms will not be required to pay higher income taxes than Pakistanis. Foreign investment is allowed in most sectors of the country, with the exception of prohibited industries. These sectors include weapons, currency, mint, and consumable alcohol.
The Securities and Exchange Commission of Pakistan is the official financial regulatory authority in Pakistan. It is comprised of four commissioners. The Chairman is the head of the organization and the other three commissioners oversee various operational units. It has nine offices across the country that handle registration of companies.
SECP has the power to establish accounting standards for companies in Pakistan. The agency’s work is hindered by a lack of professionalism and funding. The opposition perceives the agency as politically biased, and the fear of prosecution has prevented the agency from taking action on legitimate regulatory issues.
The government has taken measures to attract foreign investors to Pakistan. It has introduced sectoral policies to support the Investment Policy. These policies provide additional incentives to investors in the country. Examples include the Automotive Policy 2016, the Strategic Trade Policy Framework (STPF) 2015-18, and the Electric Vehicle Policy 2020-2025. These sector-specific policies include tax breaks and refunds, dedicated infrastructure, and investor facilitation services.
Functions
The Securities and Exchange Commission of Pakistan (SECP) is the primary financial regulatory authority in Pakistan. Its main objectives include the protection of investor rights and economic growth. It also works to establish an effective regulatory system and to register businesses and supervise capital markets in the country. You can find out more about its functions and responsibilities on its website.
The Securities and Exchange Commission of Pakistan was established in 1999 by the parliament. It replaced the Corporate Law Authority, which operated under the Ministry of Finance. The Commission’s initial mandate was to regulate the capital market and corporate sector. However, over time, the Commission has expanded its mandate to include non-banking finance companies, insurance companies, and service providers to the financial sector.
The SECP has multiple divisions and offices throughout the country. Its head office is located in the NIC Building, Jinnah Avenue, in Islamabad. It also has regional offices and Company Registration Offices throughout the country. The SECP has professional staff that perform a wide range of functions, including regulating the capital markets and businesses.
Its mission has evolved to include more complex business practices and increasing numbers of corporations. The SEC also has to monitor the evolving nature of corporate fraud. As a result, the SEC is increasingly required to perform its crucial role as a prudent registrar, a regulator of the corporate sector, and an independent guardian of the capital market.
Head office
The Securities & Exchange Commission of Pakistan (SECP) is the government body that oversees the securities and exchange market in Pakistan. The organization’s head office is located in Islamabad, in the blue zone. It also maintains regional offices and Company Registration Offices throughout the country. Its professional staff members work in a wide variety of capacities to help companies in various aspects of the industry.
The SECP’s website also has a tool for submitting complaints online. It also features a calculator for company incorporation fees, which calculates charges based on the nominal share capital of a company. It also provides contact details of the various company registration offices in Pakistan. The Associated House building is located on 7-Egerton Road in Lahore, the State Life building is located in the Mall in Peshawar Cantt, and the Nawa-I-Waqt Building is located on Abdali Road in Multan.
The new business registration facility is aimed at simplifying the process of establishing a business in Pakistan. It will eliminate the need to visit different government agencies for registering a company. The facility also integrates the registration procedures of the FBR and SECP. The new system is expected to have positive effects on the local economy and investment promotion. It could improve Pakistan’s ranking in the World Bank’s starting-a-business indicator and the composite doing-business indicator.
The Pakistani government prioritizes protecting the rights of intellectual property (IP). While the IPR laws are inconsistent, the IPO works to ensure a uniform regime that protects all IP rights. It has collaborated with the private sector in this area to improve public awareness about IP rights. Private attorneys and academics who have had contact with the IPO have noted a rise in the level of demand for IPR protection. Nonetheless, some stakeholders point to the lack of educational opportunities as a missing link in the system.
e-services
If you are a corporate person in Pakistan and have been searching for an easier way to file for incorporation, you will be happy to know that the Securities & Exchange Commission of Pakistan has implemented an e-services system that will streamline the entire registration process and increase your efficiency. The e-services system is an automated data collection and submission system. The system is designed to speed up the process and receive critical, time-sensitive information.
The SECP has multiple divisions and is responsible for regulating businesses and the capital market in Pakistan. One of its newest additions is its e-services system, which allows you to easily access information 24 hours a day. The website also integrates with the Federal Board of Revenue, the Punjab Business Registration Portal, and the Sindh Business Registration Portal.
E-services of the Securities & Exchange Commission of Pakistan also have an integrated mobile number portability database (MNP) that allows investors to verify the identity of a phone number against an individual’s CNIC. This system is a valuable tool to combat money laundering and other fraudulent activities.
The SEC has also recently added e-services for registering limited liability companies. To register a limited liability company, you must verify the identity of the entrepreneurs and the company’s name. Additionally, you must update the company’s articles of association and shareholders’ details in the business registry.
Partnerships
The Limited Liability Partnership (LLP) is a relatively new type of business structure in Pakistan and is regulated by the Securities and Exchange Commission of Pakistan. LLPs are separate legal entities from the partners and can hold property in its name. LLPs are taxed similarly to a Private Limited Company.
The IP Office of Pakistan is charged with raising public awareness about IP rights, and collaborates with the private sector to do so. While COVID-19 curbed the IPO’s momentum in this area, the agency’s recent focus on the new Geographical Indication Law has led to improved public awareness. Private attorneys and academics contacted by IPO have noted an increase in local demand for IPR protections. Nonetheless, they point to the educational system as a missing link.
The SBP, or Securities and Exchange Commission of Pakistan, regulates the financial and capital markets in Pakistan. The country follows international accounting standards and the IMF Article VIII and has comprehensive disclosure requirements for companies. Although Pakistan adheres to the principles of the OECD, the SECP has yet to implement them.
Foreign banks can establish a locally incorporated subsidiary or branch under certain conditions. These companies must have at least $5 billion in paid-up capital and belong to regional associations and organizations. These companies are also restricted to a 49 percent equity stake in their locally incorporated subsidiary.
Information resources
Information resources for the Securities and Exchange Commission of Pakistan are widely available on the Internet. These resources provide details on the organization’s functions and procedures. The website also provides information on corporate governance, corporate finance, and licensing. Information on the commission’s financial standards and data is also available.
Pakistan’s financial system is improving according to international lenders and banks. The latest SBP review of the banking sector notes stable liquidity, robust solvency, and improved asset quality. It has also noted a slow pick-up in private sector advances. The banking sector’s asset base has increased by 12.2 percent since July 2021, while the assets of the five largest banks account for 57.8% of the total.
Pakistan’s judicial system is separate from its executive branch, but it is heavily influenced by Islamic Sharia law. While the courts are generally considered credible, there are some perceived weaknesses in the judicial system. The highest court is the Supreme Court of Pakistan, which has jurisdiction over the courts of the provinces and federal government. The decisions of the Supreme Court of Pakistan have national standing.
The Pakistani government has responsibility for establishing regulatory rules. Depending on the sector, sub-national governments also have a role. Non-government actors and private sector associations can provide feedback on proposed regulations. However, the governmental authorities are not required to heed feedback. However, regulatory authorities are required to conduct in-house post-implementation reviews of regulations. These reviews are confidential.
