The extension in time allowed by Securities and Exchange Commission of Pakistan (SECP) for filing of annual returns upto Friday December 4, 2009, is also applicable on filing of annual accounts. SECP had already extended the last date for filing of annual returns for further four days, i.e., upto December 4, 2009 on account of the Eid holidays. It is clarified that the extension in time is also applicable on filing of annual accounts. All public listed, public unlisted, associations not for profit, and private companies (having a paid up capital of Rs. 7.5 million or more), which have held their Annual General Meeting on October 31, 2009, are required to file their annual accounts within 30 days, by November 30, 2009. Besides, foreign companies are also required to file annual accounts relating to their business operations in Pakistan as well as global accounts. Annual accounts from companies will be accepted during the extended period without additional payment of fee for late filing...

ISLAMABAD: The Security and Exchange Commission of Pakistan (SECP) has contributed well to improve Pakistan’s ranking in the World Bank’s `Starting a Business’ indicator. The Recently released World Bank Doing Business Report 2010 has revealed a significant improvement in `Starting a Business’ indicator, which inter-alia takes into account the procedure of registration of a company with SECP, said press release issued by the commission yesterday. The country’s ranking has improved by 17 points from 80th in 2009 to 63rd in 2010, the statement said adding that in South Asia, Pakistan is ranked well ahead of India, which is placed at 169, Bangladesh at 98, Bhutan at 80 and Nepal at 87. According to the report, registration of a company could be completed online through the e-Services project that was launched to improve efficiency and effectiveness of the business processes of SECP with a speedy, transparent and paperless environment, making it easier for the representatives of companies...

By Ansar Abbasi ISLAMABAD: The Security and Exchange Commission of Pakistan (SECP), which is sitting on an inquiry report over the alleged securities fraud of the corporate bigwigs, has sought an amendment in the SECP Act of 1997 in order to be endowed with the power of plea bargaining apparently to help the corporate bigwigs in question. SECP Chairman Salman Ali Shaikh when contacted denied that the purpose of the amendments sought is to cover up a mega fraud as concluded by the SECP’s report submitted early this year. There was no action taken by the SECP against the companies involved in the stock exchange fraud. Sources claim that the SECP, which has been delaying and concealing the alleged corruption of the corporate bigwigs so far, wants the SECP Act to be amended to authorise the Commission to indulge in plea bargaining, which in this case is particularly motivated by the desire to conceal the criminal conduct of some bigwigs and let them go scot-free. “If the SECP starts to ai...

The Securities and Exchange Commission of Pakistan (SECP) suspended the registration of five brokerage houses following the complaints about defaults on payments of their clients. “The apex regulator took this decision in exercise of its powers under the Broker and Agents Registration Rules, 2001, on charges of non-compliance with the various provisions of the Broker and Agents Registration Rules, 2001 pertaining to investor rights,” SECP announced on Monday. Those came under the hammer included Eastern Capital, Prudential Securities, Cliktrade Limited, MKA Securities and Capita One Securities. These brokers borrowed money from the banks and financial institutions by mortgaging the shares of their clients. However they were unable to pay off because of worse crisis that swept in the end of last month and persisting uncertain conditions, which caused huge losses. SECP said that these brokerage houses would remain suspended, in the public interest and for the protection of investors and ...

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has facilitated the mutual funds industry by prescribing a comprehensive process for mergers of open end mutual funds vide a Circular dated 23rd June, 2009 (Circular is available on www.secp.gov.pk). The process has been introduced to ensure the fair and transparent procedure of mergers for the protection of investors with an aim to foster growth of a robust financial sector in Pakistan. The requirements for merger of open end mutual funds include approval by the respective board of directors of fund manager, consent by trustee of mutual fund and unit holders’ approval representing at least three fourth in value of the total outstanding units. In order to promote transparency in the merger process, SECP has required fund managers to convene meetings of unit holders after public notice and has also obligated the trustee to participate in such meetings. As part of the merger process, fund managers are required to disclo...

KARACHI: The finance ministry issued on Tuesday the notification about appointment of Salman Ali Sheikh as new Chairman of the Security and Exchange Commission of Pakistan here on Tuesday. Earlier, he was serving as Acting Chairman of the SECP. Talking to Geo News, the SECP chairman said that he would speed up his efforts for the improvement of SECP, Stock Exchange and corporate sectors.

KARACHI: Stock market listed companies have been allowed to use securities market price as fair value for making the financial statements for the period ending December 31, 2008. Securities and Exchange Commission (SECP) said that the companies could use stock exchange listed securities’ market price as fair value for the financial statement made for the period ending December 31, 2008 and in the wake of it the profit or loss incurred would be resolved under IAS-39.

Securities and Exchange Commission of Pakistan (SECP) has convened a meeting of all the three stock exchanges of the country for next week. SECP officials told Geo News that matters including the present situation of the bourses, financing mechanisms and futures will come under discussion at the joint meeting of the bourses. It will be the first meeting of the Acting Chairman SECP Salman Sheikh with the officials of the three stock exchanges.

ISLAMABAD: Pursuant to the amendments in Section 95A of the Companies Ordinance, 1984, the Securities and Exchange Commission of Pakistan (SECP) has approved the draft of The Companies (Buy-Back of Shares) Regulations, 2009. The draft of the said Regulations has been placed on the Commission’s website, http://www.secp.gov.pk/DraftAmendments/trs_draft_09.pdf and is being published in the official gazette for soliciting public opinion as required under Section 506A of the ordinance. Section 95A of the ordinance, recently notified by the Federal Government allows the listed companies to buy-back/repurchase their own shares and hold such shares as Treasury Shares, whereas under the old Section 95A, the repurchased shares were required to be cancelled. The buy-back /repurchase may be used as a tool to bring stability in market prices of the shares that are undervalued on the stock market. Buy-back/repurchase of shares by listed companies may consequently improve earning per share. The draft...

KARACHI: Securities and Exchange Commission (SECP) Chairman, Raziur Rahman has said that he instead of personal interest working for the national interests turned SECP more effective during his tenure of office. Raziur Rahman talking to Geo News said that the Commission was not only made pro-active, but several reforms were also introduced in the capital markets during his tenure. He said he had submitted his resignation to the government several months ago and completed his three-year term, as the government wished. Finance Advisor, Shaukat Tareen has proposed making SECP Commissioner, Salman Sheikh as acting chairman in place of Raziur Rahman, who is stepping down today on completion of his term. It is expected that Salman Sheikh would take over the charge as Acting Chairman any time today.

ISLAMABAD: The declining trend in the Securities Market and the consequent reduction in the value of the shares of listed companies provides an opportunity to them to buy-back their own shares. Therefore, on an initiative and proposal of the Securities and Exchange Commission of Pakistan (SECP), section 95A of the Companies Ordinance, 1984 has been amended vide Companies (Amendment) Ordinance, 2009 to enable the listed companies to buy-back their own shares and hold them as treasury shares. Previously the Companies Ordinance permitted the listed companies to buy-back their own shares, however, the purchased shares had to be cancelled forthwith resulting in the reduction of the paid-up capital of the company. After the latest amendment, the listed companies can buy-back their own shares and hold them as treasury shares, which can then be re-issued/resold in the manner to be prescribed by the SECP in the regulations. According to the amended section 95A, the decision to buy-back the shar...

The Mutual Funds Association of Pakistan (MUFAP) has expressed its immediate disagreement on the arbitrary move by the Security Exchange Commission Pakistan (SECP) to re-price Term Finance Certificates (TFCs). Open end income funds are likely to be forced to temporarily suspend issuance, redemption and pricing of their units. The mutual fund industry has experienced remarkable growth and has been able to pay handsome dividend/ return to its unit holders. The industry demonstrated exceptional resilience in the face of acute liquidity problem generally faced by the financial sector and continued to meet redemptions (over Rs. 80 billion in last six months) of its valued unit holders. Shamshad Nabi, CEO, MUFAP in a statement said, “In order to meet any eventuality in the future, the industry was in constant touch with the government of Pakistan, State Bank of Pakistan and SECP, and as a result of these meetings, the Government agreed to guarantee the ‘A’ rated TFCs held in the investment p...

The Karachi Stock Exchange has sought further time from Securities and Exchange Commission of Pakistan to remove the floor placed under equity prices. The SECP had asked all three stock exchanges of the country on Thursday to remove the floor on Monday, December 15. Sources said the KSE had communicated to the SECP that without resolving the problem of outstanding CFS positions of close to Rs 11 billion, removing the floor would cause many brokers to default. However, the SECP did not respond positively to the request. On the other hand, the NCCPL has also turned down the request of KSE for rolling over of the CFS positions for ninety days. The KSE board of directors had requested the NCCPL to roll over the Rs 11 billion outstanding positions in CFS. According to a notification issued by the KSE, the floor will be removed by December 15, 2005, Monday, with normal trading parameters including application of standard up-side and down-side 5 percent circuit breakers rule in place. All thr...

The Securities and Exchange Commission has told stock markets to remove the floors placed on their indices from December 15, more than three months after they were initially imposed to restore confidence in a market battered by political upheaval. “The continuing restriction on the trade prices of the securities has adversely affected the ability of the market participants to manage their respective investments,” the regulating authority said in a statement on Thursday. “Despite best efforts, the market support fund, and other instruments like ‘put option’ could not be brought into operations so as to provide a soft landing,” it said, adding it found no reasons for the restrictions to continue. The regulator has also barred the exchanges and their boards from closing the bourses, restricting prices of securities, or interfering in the normal operations of the exchanges for 90 days. “It is in the public interest to allow the securities markets to function without any hindrance in order ...

The SECP and stock market’s guns are silent for now since chairman of the apex regulatory body left Saturday’s (Dec 06) meeting inconclusive with his last words on record that he would himself issue directives on floor in a day or two. “No communication has been built so far from both sides of the fence i.e. (1) Securities & Exchange Commission of Pakistan (SEC), and (2) the officials of local bourses, and none of them tried to approach each others on the issue of floor,” officials of two sides verified. SECP officials, however, endorsed that directives to end the floor-price rule on Dec 15 would be sent to the three local bourses last by Friday, Dec 12. “The SECP does not work on government holidays and the issuance of directive would not be delayed beyond Dec 12,” they reiterated.The staff of the Commission would resume office on coming Thursday, Dec 11, after celebrating Eid, it was learnt.“Local bourses i.e. Karachi, Lahore and Islamabad do not have powers more than the apex re...