Latest news with #SECP
Business Recorder
3 days ago
- Business
- Business Recorder
SECP issues concept paper on algorithmic trading
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed a framework that seeks to foster innovation while safeguarding market integrity and investor protection for 'Regulating Algorithmic Trading in Pakistan'. In this regard, the SECP has released a Concept Paper titled 'Regulating Algorithmic Trading in Pakistan' on Thursday. According to the regulations, the global rise of algorithmic trading, besides offering numerous advantages in speed and efficiency, also presents a set of new challenges. To address these, the SECP's framework proposes clearly defined roles for key stakeholders. Exchanges will oversee registration, testing, and the assignment of unique identifiers for algorithmic traders. Brokers must implement strong control mechanisms, comply with audit and governance requirements, and ensure rigorous oversight of their algorithmic trading activities. Meanwhile, third-party algorithm providers will be required to adhere to applicable laws and regulatory standards. Recognising that Pakistan is in the early stages of regulating algorithmic trading, the SECP recommends a phased implementation approach. Initially, access will be limited to institutional investors, with potential expansion to retail investors in later phases, contingent upon market readiness, risk assessment, and accumulated experience. The Concept Paper is now available for public feedback on the SECP's website. Stakeholders may submit comments by June 14, 2025, via email at [email protected]. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Business
- Express Tribune
Bitcoin Strategic Reserve
Listen to article Pakistan's recent announcement of a state-backed Bitcoin Strategic Reserve is the latest in a series of major shifts in global crypto policy and is earning simultaneous praise and consternation. Though the policy change comes on the heels of the US setting up its own strategic crypto reserve — the largest in the world — the US reserve has been populated with only recovered and seized crypto, and the country has been clear that it does not intend to get involved in mining. Pakistan, on the other hand, must learn from the experiences of El Salvador, which became the first country to fully legalise crypto in 2021 and the first to have a crypto-induced economic crash a year later. Despite Bitcoin having recovered its price since El Salvador has had to scale back crypto purchases and mining to meet the terms of an IMF bailout that was necessitated by the failure of crypto to help improve its teetering economy, which advocates had promised was a sure thing — something that should ring familiar for Pakistanis. Our Bitcoin czar, Bilal Bin Saqib, recently said assets would "never, ever be sold" as a long-term bet on decentralised finance. While this may help a country benefit from price appreciation in the long run, Pakistan's foreign reserves are often little more than pocket change, leaving little wiggle room to spend on crypto without sacrificing elsewhere. Also, Bilal skipped over the point that Bitcoin is still technically illegal in Pakistan under SBP and SECP rules. The pivot to crypto is a high-stakes gamble which, if executed transparently, could attract foreign investment and foster financial inclusion. But the current approach feels more like a technocratic fantasy, that could prove to be two steps back for the economy and a great leap forward for corruption. After all, the Bitcoin advisors include Binance, which does business with the children and companies of President Trump, and World Liberty Financial, which is majority-owned by the Trump family and includes investors who faced fraud charges until the Trump administration dropped the cases against them. Or maybe that is the goal — investors have dropped billions into Trump-owned crypto products. Most of that money will end up in the Trump family's pockets, while the investors have seen benefits ranging from pardons to favourable White House policies.
Business Recorder
4 days ago
- Business
- Business Recorder
The role of ESG policies in shaping sustainable businesses
Sustainability and ESG once buzzwords, have evolved to being seriously considered by both corporates and policy makers. Many argue what is the difference between the two. Technically speaking, the scope of sustainability is much broader and ESG can be taken to be a sub-set of sustainability. ESG stands for environment, social and governance, which essentially when combined covers a broad spectrum of areas within which a business operates. Generally, both these terms are concurrently used. With growing awareness, value chains are inquiring about the ESG practices of their business partners making a strong business case for implementation. Considering the importance, regulators have appropriately acted by introducing regulations and mandatory compliance with respect to sustainability. One of the key requirements for corporations is having a policy for sustainability and ESG. SECP is the primary regulator of companies in Pakistan. It has implemented numerous changes pertaining to sustainability in the regulatory framework, particularly in the Code of Corporate Governance for Listed Companies, 2019 (the Code), requiring a company's Board of Directors to establish and maintain an ESG policy. As per PICG ESG survey carried out in 2023: On a question 'Does your organization have a defined action plan related to the ESG strategy? This makes a very strong case for the companies to have a board level ESG policy to steer and speed up ESG agenda. Having a board level ESG policy is also important from a governance perspective as it brings ownership and clarity at the highest level, thereby making it easier to navigate the specific agenda across the organization to achieve the desired objectives. The Code requires companies to have a policy addressing the following: 'Environmental, social and governance (ESG) including but not limited to health and safety aspects in business strategies that promote sustainability, corporate social responsibility initiatives and other philanthropic activities, donations, contributions to charities and other matters of social welfare'. The sustainability agenda can be better achieved through a board level policy that covers the following elements: Linking the mission and vision statement and values: A company's mission and vision statement and set of values, act as the foundation on which the company exists and operates. Embedding sustainability into these core principles is crucial for integrating sustainable practices into all aspects of the business. To achieve this, companies should review and revise their existing mission and vision statements to include sustainability. Risk management: Companies have risk management programmes in place to identify, analyze, and estimate the criticality and impact of business risks, including performing scenario analysis for better impact estimation. It is important that a company analyze the possible impact of ESG related risks that could have an impact on the company's future business, profits, cash flows and market positioning and devise an action plan accordingly. Ethical culture: An important role of the board is to ensure that ethical values and culture are promoted and practiced company wide. Areas such as transparency in business dealings, maintaining confidentiality of data, anti-bribery, anti-harassment and anti-sexual harassment etc. The objective should be for all employees to be aware of and adhere to ethical values. These values should ideally be consolidated into a code of conduct that all employees sign, demonstrating their commitment to uphold them. From the ESG lens, this approach represents compliance with the social aspects. Ensuring this is adequately covered in the ESG policy will help adherence to social compliance requirements. Whistle-blowing programme: A whistle-blowing programme is a vital aspect of governance. It helps identify wrongdoings within the company and throughout the value chain. This programme encourages employees, business partners, vendors, and suppliers to report any wrongdoings they observe or experience, with the assurance of confidentiality. Additionally, it serves as a platform for reporting issues related to ESG matters. Action plan, KPI and significant issues: Management must inform the board of any significant matters related to company business or operations. Additionally, management should bring any material ESG issues to the board's attention, including the status and challenges with respect to ESG policy; updates on ESG KPIs and milestones set and achieved; non-compliance and penalties imposed due to non-compliance with any regulatory body concerning ESG and updates on CSR activities carried out. There should be adequate coverage of this in the policy. Finally, to ensure the governance of the ESG policy framework, it is essential that the company's board includes a diverse mix of members, such as independent and female directors, who possess the necessary competency, experience, and exposure to support and drive the company's ESG initiatives. The ESG policy serves as a document which not only aligns a company's internal processes to ESG but also enables a company to communicate this externally to business partners, customers and investors. This will support any enquiries about ESG indicators, and the actions taken by the company to ensure related ESG KPI's are met. Furthermore, a robust ESG policy framework will support any future requirements for independently audited statements. ======================================= Yes No Not sure In progress 30% 20% 10% 40 ======================================= Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
PECO factory sealed over non-payment of Rs1.9mn property tax
The Excise and Taxation Department of the Punjab government has sealed the factory premises of Pakistan Engineering Company Limited (PECO), a publicly listed company, due to non-payment of property tax amounting to Rs1.9 million. The company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday. 'The management is actively engaging with the relevant authorities to resolve the matter and ensure restoration of access to the factory offices to avoid disruption in administrative functions,' PECO said, in its filing to the bourse. PC initiates privatisation process of PECO Concerning the announcement of a Right Issue by PECO made in January 2025, the company informed that it has not proceeded with the said Right Issue due to directives issued in two separate proceedings initiated by the Securities and Exchange Commission of Pakistan (SECP). 'The SECP has restricted PECO from proceeding with the Rights Issue, citing regulatory limitations primarily due to the company's name appearing in the CIB report in relation to an overdue liability,' it said. PECO added that it is actively pursuing appropriate forums to clarify that the proposed Right Issue is 'aimed at addressing these very compliance concerns, and therefore, the restrictions should not apply in such a context'. Initially established under the name of Batala Engineering Company (BECO) in 1950, PECO produced light engineering products. Historically, the company manufactured high-quality machine tools, pumps, power looms, concrete mixers, cranes, power presses, electric motors, bicycles, steel rolled products, electricity transmission towers, structures and general fabrication. The plant was originally set up at Badami Bagh, Lahore, spanning 34 acres, with the neighbouring area subsequently converted into the steel centre of Pakistan. Due to the rapid addition of products, the land area became inadequate for further expansion and 247 acres of land were acquired in 1960 at Kot Lakhpat industrial zone, Lahore, for relocating factory premises in the future. After being taken over by the government in 1972 under the nationalisation reforms, it was rechristened Pakistan Engineering Company (PECO).
Business Recorder
6 days ago
- Business
- Business Recorder
Two-day SECP session on mutual funds concludes
ISLAMABAD: The second and final day of the Securities and Exchange Commission of Pakistan's (SECP) 2025 Mutual Fund Focus Group Session, themed 'Mutual Funds as Catalysts for Financial Inclusion and Economic Growth,' concluded on Tuesday in Karachi. Building on the momentum of the first day's discussions, the session engaged a new set of industry participants. SECP Commissioner Muzaffar Ahmed Mirza opened the day with a welcome address, setting the tone for interactive presentations and expert-led discussions on innovation, regulatory evolution, and the future of mutual funds in Pakistan. Structured into eight thematic sessions over two days, the focus group provided a platform for candid dialogue on regulatory challenges, innovation priorities, digital transformation, governance practices, and investor inclusion. Discussions highlighted domestic policy gaps while benchmarking against international best practices, with comparative insights from global mutual fund markets. In his closing remarks, Zeeshan Rehman Khattak, Commissioner SECP, stated: 'This session was never intended to be a symbolic gathering. It was designed as a platform for active engagement—a space for ideas, insights, and constructive criticism to flow freely. I am pleased to say it has delivered.' Copyright Business Recorder, 2025
