The Securities and Exchange Commission of Pakistan (SECP) held a meeting with the Pakistan Institute of Corporate Governance (PICG) task force to finalize the proposed revisions to the Code of Corporate Governance. The meeting was held at the SECP office in Karachi on Monday. The meeting was attended by the SECP team led by the Chairman, Muhammad Ali, and the task force members including the Chairman of the task force, Ebrahim Sidat. Some of the prominent members of the task force included Zafar Ali Khan, Moin Fudda, Fuad Hashmi, Sadia Khan, Lubna Farooq, Pervez Ghias and Masoud Naqvi. The meeting was held to finalize the code in consultation with the task force members and in light of recommendations received from different stakeholders. The meeting deliberated on different revisions proposed to the code and issues raised by the stakeholders at the roundtables and meetings held for the purpose in Karachi and Lahore. The revised code will be implemented after approval of ...

In order to foster a transparent and efficient securities market and to safeguard the investors’ interests, the Securities Market Division of the SECP took enforcement actions and penalized the market participants for non-compliance to the regulatory framework in September. T hree orders were passed against the beneficial owners/directors of the three listed companies under Section 224 (4) of the 1984 Companies Ordinance. In addition, 27 warning letters were issued to the directors and beneficial owners of 15 listed companies for non-compliance to Section 224 (2) of the Companies Ordinance. In another instance, an order was passed against a company (offerer) under Section 22 of the 1969 Securities and Exchange Ordinance, whereby a penalty of Rs300,000 was imposed for non-implementation of SECP’s earlier orders issued under Section 18-A (for submitting fictitious and multiple applications in public offering). In addition, an order was issue...

Gul Ahmed Textile Mills Limited has posted a record profit after tax of Rs 1.196 billion for the year ending June 30, 2011 and announced a 100 percent bonus share. According to financial results of the company despatched to Karachi Stock Exchange here Monday, the pre-tax profit also surged to Rs 1.537 billion for the period under review as against Rs 708.227 million in 2010. The earning per share jumped to Rs 18.85 compared to Rs 7.52 last year.

The Securities and Exchange Commission of Pakistan (SECP), in collaboration with the Karachi Stock Exchange (KSE) and National Clearing Company of Pakistan (NCCPL) organized an “Investors’ Feedback Programme” in Karachi. The programme was attended by representatives of all major capital market intermediaries including brokers, mutual funds, insurance companies, banks/DFIs and corporate pension funds and major brokerage houses. It was held to seek feedback of these entities on measures required to build investor confidence and increase investor participation in the capital market activities. The organizers also highlighted key institutional reforms introduced in the capital market that have significantly reduced market risk, added transparency, and enhanced transactional efficiency. The programme proved instrumental in brainstorming ideas and steps needed to be taken in various segments of the capital market both primary and secondary. The participants deliberated upon sugg...

The second meeting of the SECP Financial Markets and Corporate Sector Development Forum was held in Lahore with market experts, industrialists and policy makers in attendance. The agenda for the meeting was to generate ideas and solutions to develop fair, transparent and efficient financial markets and a vibrant corporate sector. Some of the best minds from various sectors and professions were present on the occasion including among others; Mr. Mian Mansha, Mr. Habib Ahmed, Dr. Salman Shah, Mr. Mumtaz Hussain Syed, Mr. Sheikh Mukhtar Ahmed, Mr. Syed Yawar Ali, and Mr. Abdul Hameed Chaudhri. Mr. Mohammad Ali, Chairman SECP, while opening the session remarked that “the SECP recognizing the need to develop vibrant markets, sectors and market players as well as to improve its capabilities and processes, has engaged the external stakeholders in a consultative process both at policy level of SECP Forum and working level of sector specific committees.” Mr. Mohammed Ali further stated that ...

In a move to facilitate market participants and in the interest of the capital market, the Securities and Exchange Commission of Pakistan (SECP) has accorded its approval to revised eligibility criteria for securities in the Margin Financing (MF) Market. Under the revised eligibility criteria, which forms part of the Regulations of the National Clearing Company of Pakistan Limited (NCCPL), 147 securities stand eligible for financing purposes in the MF Market. The NCCPL will notify the list of eligible securities while giving the required notice to the market. The revision in the said criteria and increase in the number of securities has been approved taking into account that the MF is a counter-party risk-based product, which does not entail any centralized risk management system and that the brokers perform risk assessment for their clients. The said revision has been approved based on the discussions with the Karachi Stock Exchange and senior market participants. The said move is ...

ISLAMABAD: Integrity, transparency and fairness in the capital markets are critical for protection of investors and enhancing their confidence. However, market abuses and unfair trading practices such as front-running/insider trading negatively affects this basic essence of the markets.  Front-running, a form of insider trading arises when a person engaged in processing or making investment decision/order in his official capacity uses that information for his personal benefit directly or indirectly.                                                                                     This undesirable activity usually takes place in institutions active in the capital markets such as brokerage houses, mutual funds, financial institutions and entities having large investments in ...