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Group Members:

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

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Group Members:

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  1. 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

  2. MUHAMMAD AHMEDMBK-06-42

  3. 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

  4. 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)

  5. 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

  6. Continued…. • It was concerned with the regulation of: • Corporate sector and capital market • Insurance Companies • Non-Banking finance companies • Private pensions • Vision Statement • Mission Statement • Strategy

  7. 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

  8. 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)

  9. 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

  10. 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.

  11. MUHAMMAD DILSHAD ALIMBK-06-07

  12. 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

  13. 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

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

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

  16. 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.

  17. GHULAM MUSFTAFAMBK-06-36

  18. 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.

  19. 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

  20. 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

  21. 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

  22. 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

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

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