Latest news with #SECP
Business Recorder
16 hours ago
- Business
- Business Recorder
Corporate sector: SECP establishes centralized UBO Registry
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has established a centralized Ultimate Beneficial Ownership (UBO) Registry for the entire corporate sector. In this regard, the SECP has introduced necessary amendments to the Companies Regulations, 2024 here on Tuesday. The centralized UBO Registry, to be housed at the SECP, will ensure the availability of accurate and up-to-date beneficial ownership information for companies. This initiative aligns with the recommendations of the Financial Action Task Force (FATF) and the Organisation for Economic Co-operation and Development (OECD), further enhancing transparency and integrity within Pakistan's corporate sector. Under the amended regulations, companies are required to submit their UBO information to the SECP, which is already being collected from shareholders. This information must be submitted for each financial year ending on or after June 30, 2025, through SECP's eZfile portal, along with other regulatory returns and forms. Once available, the UBO data will be accessible to financial institutions and other stakeholders as needed. The introduction of the centralized UBO Registry follows extensive stakeholder consultations and demonstrates SECP's commitment to aligning Pakistan's corporate regulatory framework with international best practices. Such measures are expected to bolster investor confidence in the country's financial and regulatory ecosystem. The official notification of these amendments is available on the SECP's website: Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
February 9, 2026: PSX will adopt T+1 settlement cycle: SECP
KARACHI: In a move to modernize Pakistan's capital markets, the Securities and Exchange Commission of Pakistan (SECP) has announced that the Pakistan Stock Exchange (PSX) will adopt a T+1 (trade-plus-one) settlement cycle starting February 9, 2026. The announcement was made by SECP Chairman Akif Saeed at a high-level event in Karachi attended by representatives from PSX, National Clearing Company of Pakistan (NCCPL), Central Depository Company (CDC), PMEX, securities brokers, banks, and industry stakeholders. The shift from the current T+2 to a T+1 cycle is aimed at enhancing market efficiency, transparency, and investor protection by accelerating the settlement process and reducing exposure to credit and market risks. The faster settlement timeline is also expected to improve liquidity and reduce the chances of default due to market volatility or operational delays. Terming it a major milestone, the SECP Chairman noted that Pakistan is aligning itself with leading global markets such as the United States, China, Canada, Mexico, and Argentina—countries that have already implemented or are in the process of adopting the T+1 framework. NCCPL is spearheading the transition under SECP's direction, with a dedicated implementation committee formed to oversee the process. The committee includes representatives from SECP, capital market infrastructure institutions (CMIIs), custodian banks, and securities brokers. Consultations have also been held with foreign investors to ensure a smooth adaptation. To facilitate operational readiness, NCCPL has developed a detailed roadmap and procedural guide to help market participants identify and resolve any challenges ahead of the transition. The SECP Chairman urged all stakeholders to begin reviewing and upgrading their systems to align with the new settlement timeline. Market experts view the development as a strategic reform that underscores the growing maturity and resilience of Pakistan's financial markets. The initiative also reinforces ongoing efforts to align the capital market with international best practices. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
Company law modernisation to save Rs250b
The government has estimated annual cost savings of around Rs250.54 billion ($895 million) through the modernisation of Companies Act and regulatory reforms. Of the total, savings of around Rs176.96 billion ($632.2 million) will come from modernising the law and Rs73.58 billion ($262.8 million) from regulatory changes. Sources said that it was informed in a recent meeting of the sub-committee on modernisation of Companies Act 2017, chaired by Special Assistant to Prime Minister on Industries and Production Haroon Akhtar Khan. During the meeting, Haroon Akhtar stressed the need for simplifying the registration process for unlisted companies, noting that delays, excessive regulation and the lack of ease of doing business had become serious challenges being faced by the business community. The sub-committee noted that stunted corporate growth was due to increasing regulatory burdens, which come with growth of a corporate entity. "There is excessive control over company activities and exclusion of innovative corporate financing options. A high level of complexity compounds such issues," it said. Pakistan has only 523 listed companies, which translates into two companies per million people. A comprehensive review of the Companies Act 2017 is required through benchmarking it with international standards. Global standards suggest that the Act should focus on regulating listed companies and higher-risk firms such as state-owned enterprises (SOEs). Corporate governance for unlisted companies should primarily be handled through corporate bylaws, shareholder agreements and contract law. The current one-size-fits-all approach is not suitable for the modern corporate environment. The Act imposes numerous thresholds, barriers and compliance costs that hinder the growth of unlisted businesses. It limits innovation in corporate forms and financing methods such as joint ventures, peer-to-peer lending, venture capital and crowdfunding. What modernisation will do It will promote faster growth of corporate entities by removing unnecessary restrictions, costs and risks. It will increase flexibility for organising and financing corporate entities to meet needs of a modern and dynamic economy. Apart from these, the Securities and Exchange Commission of Pakistan's (SECP) enforcement efforts for listed companies will be strengthened. Its focus on education regarding good governance will be reinforced. A review suggests that the 418-page Act can be substantially deregulated for unlisted companies to allow a smoother growth path from sole proprietors through limited liability companies (LLCs) and into the expansion phase using various financing forms. This shift will allow unlisted companies to grow faster and be more agile in responding to market opportunities by providing greater flexibility in governance. Special resolutions Special resolutions create thresholds that impose regulatory costs. There are mandatory provisions for unlisted companies. There is excessive reliance on special resolutions, which slows down routine decision-making. Routine decisions should be governed by corporate bylaws, shareholder agreements, contract law, or delegated to the board of directors. Pakistan has 23 special resolutions, compared to nine in Canada and six in Delaware. The Board of Investment (BoI) recommends eliminating seven, simplifying 10 to allow more flexibility for directors and retaining six that align with international practices for protecting minority shareholders. Rigid thresholds for forming and operating various types of corporate entities have resulted in unnecessary compliance costs. For example, a private company must have between two and 50 members. If the number exceeds 50, it must convert into a public company. BOI recommends eliminating arbitrary thresholds and the classification of single-member companies as a separate corporate form. It also suggests abolishing the minimum and maximum shareholder requirements for both private and public companies.
Business Recorder
5 days ago
- Business
- Business Recorder
SECP intensifies recovery drive for various penalties
ISLAMABAD: In a true reflection of its dedication to upholding the integrity and transparency of Pakistan's financial markets and corporate sector, the Securities & Exchange Commission of Pakistan has intensified the recovery drive for various penalties imposed during the year. To date, the SECP has successfully recovered Rs 26 million in penalties during the financial year 2024-25, constituting 30% of the fines imposed during the said period. Efforts are underway for recovery of outstanding penalties through periodic communication with companies as well as recovery through Land Revenue Department and respective High Courts. The above recovery is exclusive of Rs 334 million of penalties imposed by the SECP on four unlisted companies involved in illegal deposit-taking activities, penalty recovery proceedings for which have already been initiated through Prosecution and Civil Litigation Department of SECP; total amount of penalties imposed stands at Rs 425 million. Section 42B of Securities and Exchange Commission of Pakistan Act, 1997 empowered the SECP to recover the imposed penalties as a decree for payment of money, and the High Courts are empowered to exercise powers of an executing Court as per Code of Civil Procedure, 1908 for recovery of penalties. Executing courts can attach any immovable or movable property including bank account of company on whom penalties have been imposed. Under the said Section 42B, penalties can also be recovered by the SECP as arrears of land revenue. As part of its penalty recovery regime, the SECP has issued multiple reminders with one-month intervals to defaulter companies, providing an adequate opportunity to deposit penalties with the SECP in a timely manner. In cases where offenders have not responded and have failed to deposit the imposed penalties despite issuance of multiple reminders, the SECP has initiated proceedings for recovery of penalties through its Litigation Department. The SECP remains dedicated to protecting stakeholder interests and mitigate systemic risk through vigorous enforcement of its administered laws, aimed at creating a compliant culture in the corporate sector. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business
- Business Recorder
CPF scheme: KP govt, Pak-Qatar Takaful ink deal
PESHAWAR: The government of Khyber Pakhtunkhwa signed an agreement with Pak-Qatar Takaful as fund manager under the Contributory Provident Fund (CPF) scheme on Thursday. The agreement was signed in a simple but impressive ceremony held at the Finance Department's Conference Room. Besides, Advisor on Finance to KP government, Muzzammil Aslam, Secretary Finance Amer Sultan Tareen, and Additional Secretary Budget Arshad Ali, Team lead Abdul Qayyum, Deputy Director Pension Cell Naveed Alam, along with the delegation representing Pak-Qatar Takaful attended the ceremony. Speaking on the occasion, Finance Advisor Muzzammil Aslam said that the Khyber Pakhtunkhwa Government is expanding the Contributory Provident Fund scheme to further strengthen its pension reform efforts. The CPF, launched in 2022 for provincial civil servants, is a flagship pension initiative, and more than 59,000 government employees have been registered under the scheme so far. This programme is based on a joint contribution model aimed at securing the financial future of government employees — wherein the employee contributes 10% of their basic pay while the government contributes 12% monthly. It was highlighted at the event that a key feature of the CPF scheme is the outsourcing of its investment component, which operates under the Voluntary Pension System (VPS) model - a structured pension framework regulated by the Securities and Exchange Commission of Pakistan (SECP) since 2005. The Khyber Pakhtunkhwa Government has adopted this model after tailoring it to meet the specific needs of the province. The Advisor on Finance also explained that the CPF scheme engages only those Asset Management Companies (AMCs) that are licensed by the SECP and have a minimum credit rating of AM2 - reflecting high standards of professional fund management. Since the scheme's launch, the government had entered into agreements with 12 such licensed AMCs. During the ceremony, it was shared that Pak-Qatar Family Takaful Limited recently obtained its VPS license and applied to become a fund manager under the CPF scheme. After a comprehensive evaluation, the Khyber Pakhtunkhwa Government formally signed the agreement with Pak-Qatar on July 23, 2025, through the office of the Secretary Finance. With this agreement, Pak-Qatar becomes the 13th approved fund manager on the CPF investment panel. This expansion reflects the Khyber Pakhtunkhwa Government's commitment to providing diversified, professionally managed, and Shariah-compliant investment options under its pension framework to ensure transparency, long-term sustainability, and employee confidence. Copyright Business Recorder, 2025
