Skip to main content

SECP to increase its enforcement capacity by 200%


There is a strong need for strengthening of regulatory environment in Pakistan for the development of a modern corporate sector, Chairman, Securities and Exchange Commission of Pakistan (SECP), Muhammad Ali said while addressing a press briefing at the SECP head office on Thursday.
 Briefing the journalists, the SECP chairman said that it has been decided to increase the SECP’s capacity of enforcement by 200%. He said that on-site inspection of all licensed entities including brokers would be conducted annually and offsite monitoring on a quarterly basis. This will increase transparency, investor confidence and foreign portfolio investment.
In the past the SECP took action against defaulters by filing criminal complaints and sometimes referring those cases to the NAB. However, in order to ensure compliance with all the relevant statutory requirements, it is necessary that offsite monitoring and onsite inspections should be regularly conducted for all licenses/licensed entities.
In order to have effective enforcement and to adopt the best international practices, the SECP has decided that the following divisions/departments will conduct offsite monitoring once in each quarter and onsite inspection once in a year of each of their following licensee/ licensed entities as a policy with effect from July 1, 2013:

1.         Specialized Companies Division
(a)        Asset management services (27)
(b)        Investment advisory services (23)
(c)        Investment finance services (7)
(d)        Leasing business (13)
(e)        Housing finance services (1)
(g)        Voluntary pension schemes (6)
(h)        REIT management services   (2)
(i)         Private equity and venture capital fund management services (3)

The maximum penalty for the refusal of inspection is up to Rs 50 million as well as cancellation and /or suspension of the license.

 2.         Securities Market Division
(a)                Stock exchanges (3)
(b)               Commodity and futures exchange (1)
(c)                Depository companies (1)
(d)               Clearing companies   (1)
(e)                Stock exchange and commodity exchange brokers and branches  (254 +176=430)
(i)         Credit rating companies (2)
(k)        Debt securities trustees (15)

The scope of items j and k to be limited to the law being administered the SECP.
 The maximum penalty for the refusal of inspection is up to Rs 100,000 and suspension of the license.

 3.         Insurance Division
(a)        Insurance companies (68) (active insurance companies are 49)
(b)        Insurance brokers (6)

The maximum penalty for the refusal of inspection is up to Rs 1 million
 In response to question about the impact of CGT regime, Mr. Ali said that market capitalization before the amended CGT regime was implemented was Rs2,945,784 million. However, market capitalization by December 2012 was Rs 4,242,278 million, i.e.’ an increase of 44%.

Labels:

Comments

Post a Comment

Popular posts from this blog

Pakistan Stock Exchange Hosts Historic Brokers Awards Ceremony to Celebrate Capital Market Excellence

KARACHI: The Pakistan Stock Exchange (PSX) hosted a landmark Brokers Awards Ceremony to recognize the outstanding performance, market leadership, and vital contributions of prominent brokerage firms in shaping Pakistan’s capital market. The event served as a major platform to acknowledge excellence, highlight market transparency, and bolster investor confidence. In a notable highlight of the event, PSX unveiled its new Gong Bell, introducing a modern symbol of celebration to mark significant capital market achievements. Key Award Categories & Winning Brokerage Houses Recognitions were bestowed across a wide array of operational and strategic categories, including Traded Volume & Value, Most Active (Number of Accounts), New UINs Opened, Value of Bids – GoP Sukuk, Number of Investors – GoP Sukuk, Secondary Market – GoP Sukuk, and Top CTIs (Number of IPOs & Capital Raised). Leading brokerage firms honored across these competitive categories included: Arif Habib Limited JS Glo...
Post a Comment
Read more

THK Associates (Private) Limited: Shares Registrar

THK Associates (Pvt) Limited was formed in 1989. The company is engaged in providing specialized services relating to the corporate sector and in particular acts as share transfer agent for a number of companies. THK Associates (Pvt) Limited is one of the leading service provider of Share Registrar, Transfer Agent, Balloters for IPO’s and Share Accounting Services and is managed and run by a set of professionals having indepth knowledge and expertise of organizing and managing diversified corporate activities including depository related Share Registrar activities. THK Associates (Pvt) Limited, previously an associate of KPMG Taseer Hadi & Co., has been restructured in terms of requirements of Clause XL of the Code of Corporate Governance and the shareholding of THK partners has been divested in the year 2004. Mr. Yunus Dawood, Chief Executive of DYL Motorcycle Limited, a shareholder and Director was appointed as Chairman of the Company in 2008. Mr. Javed Iqbal, former Chairman an...
3 comments
Read more

SECP initiates 86 show-cause proceedings against compamies

The SECP’s Enforcement Department— while enforcing compliance of corporate and allied laws— initiated 86 show-cause proceedings and concluded 54 proceedings against chief executives, directors and auditors of companies in February and March. While facilitating companies to strengthen their capital base, the department allowed three listed companies to issue shares by way of otherwise than right at a discount and at par.  In order to strengthen the existing regime of Corporate Social Responsibility (CSR) reporting, the SECP has joined hands with the ICAP for the external assurances of the CSR reports.  CSR reports assist organizations in understanding and communicating their vision of combining a company’s profitability with social responsibility and environmental care. Both the SECP and the ICAP have reaffirmed their commitment to developing a framework for external assurance in accordance with prominent international assurance standards, and within a mutually agre...
4 comments
Read more