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SECP for improving corporate governance standards


The Securities and Exchange Commission of Pakistan (SECP) conducted an awareness session on the 2012 Code of Corporate Governance at the Islamabad Stock Exchange (ISE). It was held in collaboration with the ISE and was attended byCEOs, CFOs, company secretaries and internal auditors of companies listed at the ISE.
The session opened with the brief remarks by Mian Ayaz Afzal, Managing Director, ISE, followed by a presentation by the SECP highlighting the revised code and a presentation by the ISE on compliance and enforcement of the code and a question-and-answer session.
Mr. Imtiaz Haider, Commissioner, Securities Market Division, SECP, highlighted the salient features of the revised code and the need for improving corporate governance standards to promote a vibrant capital market. He also touched on various initiatives to promote governance that the SECP has or is currently working on such as introducing the Code of Corporate Governance for SOEs, e-dividend, e-voting, AGMs through video conferencing, etc.
The code was launched and implemented as part of the listing regulations of the stock exchanges in April 2012. It was finalized after extensive stakeholder consultation both by the Pakistan Institute of Corporate Governance Task Force and by the SECP. However, this consultation and coverage was more at a policy level, since the implementation of the code the SECP has been receiving numerous queries–primarily of operational nature.
Due to above and the fact that the revised code has made certain previously optional provisions mandatory and also introduced new concepts and requirements, it was felt that awareness sessions should be held at all three stock exchanges targeted towards CEOs, CFOs, company secretaries and internal auditors of the listed companies. Similar sessions were held at Karachi Stock Exchange and Lahore Stock Exchange last year both of which were also very well received.
This awareness session is a part of the SECP’s effort to raise corporate governance standards in Pakistan and to protect the interests of minority shareholders. Apart from creating awareness, these sessions would help listed companies to ensure compliance with the provisions which have become effective and at the same time prepare and take measures for timely implementation of the provisions which will become effective at the time of next board election.
It is expected that these sessions will not only lead to successful implementation of the code but also improve the growth of corporate sector by promoting governance regime which strengthens the rights of all stakeholders.
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