The Securities and Exchange Commission of

Pakistan (SECP)

The Securities and Exchange Commission of Pakistan (SECP) (Urdu: ‫)ماموریہ تمسکات و مبادلہ پاکستان‬,
formerly known as Company Law Administration, Company Law Board, and Corporate Law
Authority, is the corporate legislative and financial regulatory agency of Pakistan whose
objective is to develop a modern and efficient corporate sector and a capital market based on
sound authority principles, in order to encourage investment and foster economic growth and
prosperity in Pakistan,
The SECP is a collegiate body with collective responsibility. The operational and executive authority of
the SECP is vested in the Chairman who is the SECP's chief executive officer (CEO). The Chairman is
assisted by four Commissioners to oversee the working of various operational units as may be determined
by him. The SECP has nine company registration offices located at
in Islamabad, Karachi, Lahore, Multan, Peshawar, Sukkur, Faisalabad, Quetta and Gilgit-Baltistan.
The history of the Securities and Exchange Commission of Pakistan (SECP) traces back to the
amendment of the Companies Act in 1956, which led to the establishment of the Board of
Company Law Administration (BCLA) in 1963). SECP also regulates various external service
providers that are linked to the corporate sector, like chartered accountants, rating agencies,
insurance companies, corporate secretaries and others.

Divisions
The SECP is divided into the following divisions:

 Adjudication Division
 Licensing and Registration Division
 Insurance Division
 Legal Affairs Division
 explain
Securities Market Division

 Specialized Companies Division

 Supervision Division
 Support Services Division

1
The Securities and Exchange Policy Board.
(The Federal Government shall appoint a Securities and Exchange Policy Board consisting of
seven Members
 (2) Of the Members-
 four shall be-
 ex-officio the Secretary lo the Governrnenl of Pakistan, Finance Division;
 ex-officio the Secretary ro the Government of Pakistan, Law Division;
 ex-officio the Chairman of the Commission: and (iv) a Deputy Governor of the State Bank of
Pakistan nominated by the Governor of the State Bank of Pakistan: and
three appointed by the Federal Government from private sector each of whom is we ll-known for
his integri ty, expertise and e xperience in the spheres of commerce and industry (including in
particular the securities industry), corporate law, accountancy, financ ial services. investment
banking, academia or other re lated relevant fie lds of expertise.

POWERS AND FUNCTIONS

( 1) The Commission shall have all such powers as may be necessary to per(orm its duties and
functions under this Act.
The Commission may. having regard to its functions and to exercise its powers efficiently,
organize itself into di visions, wings or such other sub-divisions as it may consider expedient.
(3) The Commission may, from time to time, identify the matters requiring the Board to make
policy decisions and may also make recommendations regarding policy to the Board for its
consideration. r
(4) The Commission shall be responsible for the performance of the following functions :
(a) regulating the issue of securities;
(b) regulating the business in Stock Exchange and any other securities markets
(c) supervising and monitoring the activities of any central depository and Stock Exchange
clearing house;
(d) registering and regulating the working of stock brokers, subbrokers, share transfer ag~nts ,
bankers to an issue, trustees of trust deeds, registrars to an issue, underwriters, portfolio
managers, investment advisers and such other intermediaries who may be associated with he
securities markets in any manner;
(e) proposing regulations for the registration and regulating the working of collective investment
schemes, including unit trust schemes;

2
6. In performing its functions and exercising its powers, the Commission shall strive-
(a) to maintain facilities and improve the performance of companies and of securities markets,
in the interest of commercial certainty, reducing business costs, and efficiency and development
of the economy;
(b) to maintain the confidence of investors in the securities markets by ensuring adequate
protection for such iJ1vestors;
(c) to achieve uniformity in how it performs those functions and exercise those powers;
(d) to administer laws effectively but with a minimum of procedural requirements;
(e) to receive, process, and store, efficiently and quickly, the documents lodged with, and the
information given to, it under this Act. the Ordinance or any other law;
(f) to ensure that the documents, and the informati on referred to in clause
(e) are available as soon as possible for access by the public; and

Functions and powers of the Board.

(i) advise the Federal Government on all matters relating t the securities industry;
(ii) regulation of companies and corporate sector and protection of the interests of
investors;
(iii) measures to encourage self-regulation by the Stock Exchanges and NBFis by specifying
the standards for such self regulatory organizations; (iv) measures to promote the
development of and to regulate the securities market; and (v) other related matters;
(iv) consider and approve (with or without modification) any regulations proposed to be
made by the Commission under the Act
(v) express its opinion in writing on any policy matter referred to it by the Federal
Government or the Commission;
(vi) oversee the performance of the Comm~ssion to the extent that the purposes of this Act
are achieved;
(vii) exercise all such powers and perform all such functions as are conferred or assigned to it
under this Act; and specify fees, penalties and other charges chargeable by the
Commission for carrying out the purposes of this Act.

3
RULES AND REGULATIONS
(1) Subject to sub-section
(2), the Federal Government may, by notification in the official Gazette, make rules for all or
any of the matters in respect of which it is required to make rules to carry out the purposes of
this Acr. ,.. –
The power to make rules conferred by this section shall be subject to the condition of previous
publication and before making any rules the draft thereof shall be pub! ished in the official
Gazette for e liciting public opinion thereon within a period of not less than sixty days from the
date of publication.
Power to make regulations.-
Subject to sub-section
(i) the Board. suo motu or on the recommendation of the Commission j and in
consultation with the Federal Government ; and •
(ii) the Commission with the approval of the Board, may make ·such regulations as may
be required to carry out the purposes of this Act
(iii) The power to make regulations conferred by this sec(ion shall be subject to the
condition of previous publication and before making any regulations the draft thereof
shall be published in two newspapers of wide circulation for eliciting public opinion
thereon within a period of not Jess than sixty day~ from the date of publication.

THE SCHEDULE.
POWERS AND FUNCTIONS CONFERRED ON THE AUTHORITY UNDER THE ORDINANCE
TO BE EXERCISED BY THE COMMISSION
 To call for any information, document etc. for purposes of any proceeding or inquiry (section
12(4) of the Ordinance)
 To allow alteration i·n the Memorandum of Association (section 21 of the Ordinance).

 To decide whether a name of a company is appropriate and pennissihle (section 37 of the

Ordinance)
 To grant licence to an association not for profit to be registered as a company (section 42 of
the Ordinance).
 To accord approval for conversion of a public company into a private company (section 44
of 1he Ordinance). 6. Approval of prospectus (section 57 of the Ordinance).

4
 To allow issue of s~cu rities outside Pakistan (section 62A of the Ordinance).
 To order restoration of the names of defunc.t companies (section 439(9) of the Ordinance).
 To exercise similar powers in the case of foreign companies (section 457 of the Ordinance).
 To accord special permission to take over original documents from custody of Registrar
(section 467 of the Ordinance).
 To prescribe additional fees for filing of documents (section 469 of the Ordinance).
 To force companies to comply with the provisions of the Ordinance (section 472 of the
Ordinance).
 To impose fine as penalty (section 476 of the Ordtinance). 31. To hear appeals against the
orders of Registrar (section 477 of the Ordinance).
 To exercise powers of court in reJation to enquires and proceedings (section 478 of the
Ordinance).
 To direct appearance of officers of companies (section 479 of the Ordinance).

 To appl y amount of t~ e towards payments of costs, compensations, etc. (section 483 of the
Ordinance).
 To hear revision petition against the orders of Registrar, etc. (section 484 of the Ordinance).

 To grant relief in certain cases (section 488 of the Ordinance).

 To impose penalty for wrongful withholding of company profit (section 493 of the
Ordinance).
 To impose penalty for non-compliance with directions (section 495 of the Ordinance).