The Securities and Exchange Commission of Pakistan (SECP) is a government agency 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.
History
The Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority, which was an attached Department of the 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 on January 1 1999. The Act gave the organization the administrative authority and financial independence to carry out the reform program of Pakistan’s capital market with the assistance of the Asian Development Bank (ADB). Powers of the Commission have been delegated to the individual Commissioners and Appellate Benches, as envisaged in the Act.
The scope of the authority of the Commission has been extensively widened since its creation. The insurance sector, non-banking financial companies, and pension funds have been added to the purview of the Commission. Now the Commission's mandate includes investment financial services, leasing companies, housing finance services, venture capital investment, discounting services, investment advisory services, real estate investment trust[2] and asset management services, etc. The Commission also regulates various external service providers that are linked to the corporate sector, like chartered accountants, rating agencies, corporate secretaries and others.
Status after passage of 18th amendment to the 1973 constitution of Pakistan
The status of SECP of Pakistan is unclear after the passage of the 18th amendment which abolishes the concurrent legislative list. As subjects 6 to 11 and 26 to 28 of the concurrent list deal with corporate law, registration and regulation it is likely, barring any intervention from the provinces, that the SECP would be disbanded once the 18th amendment becomes law in April of 2011. The provinces have already agreed upon dissolution of the Ministry of Industries and Production.
Location
The Commission's main office is in the Blue Area in Islamabad.
0 comments:
Post a Comment