1-SECP - Saboohi Israr

2nd SME Conference (International)
Presentation by: Saboohi Israr

Deputy Registrar of Companies
Company Registration Office, Lahore
Securities & Exchange Commission of Pakistan (SECP) is the apex
regulatory body in the country to regulate the corporate sector and
the capital market with the aim to ensure transparency and efficiency
in the functioning of its financial markets.
One of the main functions of the SECP is to incorporate companies
under the Companies Ordinance, 1984 (the Ordinance).
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Securities and exchange commission of Pakistan
DIVISIONS IN SECP
 COMPANY LAW DIVISION
 SECURITIES MARKET DIVISION
 SPECIALIZED COMPANIES DIVISION
 INSURANCE DIVISION
 SUPPORT SERVICES DIVISION
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FUNCTION OF SECP
Administration of company law.
Incorporation of new companies and their Regulation.
Regulation of securities market and related institutions
Regulation of insurance sector and administration of insurance law.
Regulation of non banking finance companies such as leasing

companies, investment banks etc.
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FACILITATION MEASURES
 E-enablement Measures
Investor Facilitation Measures
Legislative Measures
Proposed measures to facilitate corporate sector/SMEs

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E-enablement Measures
Launch of eServices to enable online incorporation and post-

incorporation services delivery.
Introduction of a simple one-page JSP form to capture information at
company incorporation stage electronically.
Facility for online payment of fee through credit cards and online fund
transfer at MCB and UBL
Enabling electronic inspection of corporate records (inter-CRO)
Setting up of help-line/service desk for the users of eServices
Establishment of Facilitation Desk at regional offices
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Investor Facilitation Measures
Name search facility available through Commission’s website

Model Memorandum and Article of Associations of more than 80 major
business sectors placed on website, including one-pager MOA for
designated sectors
Guide Series on incorporation and post-incorporation requirements
issued in different languages
Introduction of Swift Company Registration Scheme
Opening of facilitation centers in Sialkot and Abbottabad
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Investor Facilitation Measures
Issuance of a tri-fold incorporation brochure highlighting benefits of

corporatization and the steps involved in company registration and
ancillary activities
Free of Cost Copies at the time of registration of company
Reduction of company incorporation fee significantly i.e. up to 60%
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Legislative Measures
The draft Companies Bill, 2017.
Issuance of Companies Easy Exit Regulations.
Setting time limits on regulator ’ s case handling through

Companies Registration Office Regulations, 2003 as amended
from time to time.
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Measures Introduced to Promote Small and Mid-sized NBFCs
Promotion of small and Concept of small and mid-sized non-deposit taking lending
mid-sized non deposit NBFCs has been introduced by significantly reducing equity
taking NBFCs requirements to encourage small and mid-sized lending
NBFCs
Floatation and There are no restrictions for the small entrepreneurs to enter
Management of in SME sector through floatation and management of
Modarabas Modarabas. Under the Modaraba law, a company with the
paid up capital of Rs. 2.5 million only can undertake the
business of floatation and management of Modarabas.
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Measures Introduced to Promote Small and Mid-sized NBFCs
Reduced capital and For supporting SME sector, the paid up capital
fund size requirement for REIT management company has been
requirements for reduced from Rs. 200 million to Rs. 50 million and the fund
REITs. size for REIT Scheme has been brought down from Rs. 2
billion to the listing requirement of the relevant stock
exchange
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In year 2015, SECP in consultation with Pakistan Stock Exchange has prepared a
regulatory framework called the “REGULATIONS GOVERNING LISTING AND TRADING
OF EQUITY SECURITIES OF SMALL AND MEDIUM ENTERPRISES (SMEs)
Eligibility Criteria:
SME must be a public company, registered under the Companies Ordinance, 1984,
having a post issue paid up capital of not less than Rs.25 million and not more than
Rs.200 million.
An SME may apply for listing provided it is authorized by its Memorandum and Articles
of Association to do so and shall offer shares only to Qualified Institutional Buyers
(QIBs) and High Net-Worth Individuals (HNWIs).
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Fund Raising from capital market - Framework
for SMEs
Other Conditions:
 minimum offer size is 20% of the post issue paid-up capital of SME;
 offer of securities through circulation of Information Memorandum;
 Appointment of Market Advisor;
 Appointment of Market Maker for quoting two way quotes of SME;
Number of initial subscribers is not less than five (05);
Bid size for each initial subscriber is not less than rupees one million;
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Fund Raising from capital market-
Framework for SMEs
Minimum order size for trading in equity securities of SME is Rs.100,000;
Prohibition on short and blank sales;
Sponsors shall retain their entire shareholding including subsequent

right and bonus shares for a lock in period of at least I year
Issuer must have its own website and disseminate the basic
information about the SME, its business activities and audited financial
statement 14
THANKS
[email protected]
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2nd SME Conference (International)

Presentation by: Saboohi Israr

Administration of company law.

Incorporation of new companies and their Regulation.

Regulation of securities market and related institutions

Regulation of insurance sector and administration of insurance law.

Regulation of non banking finance companies such as leasing

Investor Facilitation Measures

Proposed measures to facilitate corporate sector/SMEs

Launch of eServices to enable online incorporation and post-

Name search facility available through Commission’s website

Issuance of a tri-fold incorporation brochure highlighting benefits of

The draft Companies Bill, 2017.

Issuance of Companies Easy Exit Regulations.

Setting time limits on regulator ’ s case handling through

Minimum order size for trading in equity securities of SME is Rs.100,000;

Prohibition on short and blank sales;

Sponsors shall retain their entire shareholding including subsequent

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