Securities and Exchange Commission of Pakistan
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The Securities and Exchange Commission of Pakistan SECP is an acronym for the Security and Exchanges Commission of Pakistan. Their purpose is to develop a modern and efficient corporate sector and a capital market based on the sound regulatory principles to foster high economic growth and prosperity in Pakistan
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[edit] History
The Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority, which was an attached Department of Ministry of Finance. The process of restructuring the Authority was initiated in 1997 under the Capital Market Development Plan of the Asian Development Bank (ADB). A Securities and Exchange Commission of Pakistan Act was passed by the parliament and promulgated in December 1997. In pursuance of this Act, the Securities and Exchange Commission of Pakistan, having autonomous status, became operational from January 1st 1999.
The Act of Securities and Exchange Commission of Pakistan institutionalized certain Policy decisions relating to the Constitution and Structure of Commission, its powers and functions giving administrative authority and financial independence to carry out the reform program of Pakistan’s capital Market with assistance of Asian Development Bank (ADB). Powers of the Commission have been delegated to the individual Commissioners and Appellate Benches, as envisaged in the Act.
The Commission became operational in January 1999. The scope of the authority of the commission has been extensively widened. The Insurance Sector, Non Banking Financial companies, Pension Funds have since been added to the purview of the Commission.
Now the Commission Mandates includes the entire Non Banking Financial Sector i.e Investment Financial services, Leasing Companies, Housing Finance Services, Venture Capital Investment, Discounting Services, Investment Advisory Services and Asset Management Services etc. The Commission has also been delegated powers, which the federal Government had, in regulating various External Service providers that are linked to the corporate sector, like chartered Accountants, rating agencies, cooperate Secretaries and others. So the challenge of the SEC has amplified manifold with the increased mandate it now has.
[edit] Location
- Its main office is in the Blue Area in Islamabad.
[edit] Vision
- "To develop a fair, efficient and transparent regulatory framework, based on international legal standards and best practices, for the protection of investors and mitigation of systemic risk aimed at fostering growth of a robust corporate sector and broad based capital market in Pakistan."
[edit] Mission Statement
- "The development of modern and efficient corporate sector and capital market, based on sound regulatory principles, that provide impetus for high economic growth and foster social harmony in the country."
[edit] Strategy
- "To develop an efficient and dynamic regulatory body that fosters principles of good governance in the corporate sector, ensures proper risk management procedures in the capital market, and protects investors through responsive policy measures and effective enforcement practices."
