Latest news with #SecuritiesandExchangeCommissionofPakistan
Business Recorder
3 days ago
- Business
- Business Recorder
Further empowerment for MUFAP: Mutual funds to go digital with SECP support
ISLAMABAD: To make mutual funds more accessible to the general public, the Securities and Exchange Commission of Pakistan (SECP) is incentivising digital transformation and further empowering the Mutual Funds Association of Pakistan (MUFAP). In a media briefing held at the SECP Headquarters, Commissioner Zeeshan Rehman Khattak said the SECP has introduced a series of regulatory and developmental measures to reinforce the mutual funds industry and foster financial inclusion. He reaffirmed the commission's commitment to investor protection, operational efficiency, and regulatory alignment with global standards. He emphasized the central role of digitisation in driving innovation within the financial sector. A key initiative is the launch of a Digital Asset Management Companies (AMC) framework, which includes reduced minimum equity and fund size thresholds, fully digital onboarding, and streamlined operations — measures designed to boost innovation and accessibility. In a landmark move, the SECP has registered MUFAP as a Self-Regulatory Organisation (SRO) under the SECP Act, 1997—the first such designation in Pakistan's financial services industry. The MUFAP will now assist in regulatory development, member compliance, and investor outreach, helping build trust and transparency across the sector. To shape the future roadmap of the Mutual Fund industry, the SECP recently engaged with key industry stakeholders and developed a white paper focusing on key reform areas. These include advancing digital transformation, developing Exchange Traded Funds (ETFs), introducing Environmental, Social and Governance (ESG) and infrastructure funds, and formulating strategies to enhance financial inclusion. The white paper is available on the SECP website. Additionally, a dedicated committee has been formed to accelerate ETF market growth and improve investor participation. These reforms reflect the SECP's proactive approach to strengthening capital markets and ensuring sustainable, inclusive financial development in Pakistan. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Risk disclosure docs: Customers' acknowledgment mandatory for futures brokers: SECP
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for futures brokers to obtain acknowledgment from their stock market customers about the risk disclosure document. The SECP has issued an S.R.O.1448(I)/2025 to amend Futures Brokers (Licensing and Operations) Regulations 2018 According to the draft amendments, the futures broker shall obtain a written, electronic, online or digital acknowledgment, having verifiable authentication credentials, or duly signed and dated by the customer, confirming that such customer has understood the nature and contents of the risk disclosure document, the SECP added. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
SECP registers record 4,065 cos in July
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has achieved a historic milestone by registering a record 4,065 companies in July 2025-the highest monthly registrations to date, surpassing the previous record of 3,609 set in May 2025. With 99.9% of incorporations processed digitally, the total number of registered companies in Pakistan now stands at 262,309. The total paid-up capital for July 2025 amounted to Rs. 4.96 million. Private limited companies accounted for 57% of new registrations, followed by single-member companies at 39%. The remaining 4% comprised public unlisted companies, not-for-profit organizations, companies limited by guarantee, and limited liability partnerships. The Information Technology and e-commerce sectors led with 862 new incorporations, followed by trading (530), services (468), and real estate development and construction (398). Other active sectors included tourism and transport (295), food and beverages (203), education (148), marketing and advertisement (98), mining and quarrying (95), textiles (91), pharmaceuticals (86), agricultural farming (74), engineering (64), cosmetics and toiletries (59), and chemicals and healthcare (56). An additional 482 companies were registered across other sectors, including fuel and energy, non-profits under Section 42, auto and allied, power generation, and communications. Foreign investment also showed positive momentum, with 96 newly registered companies receiving capital from international investors across diverse jurisdictions. As part of its efforts to enhance market access and financial inclusion, the SECP issued a total of 60 licenses during the month across multiple regulatory domains, including five in capital markets, one in insurance, two to non-banking financial companies (NBFCs), and fifty-two to not-for-profit associations. Following the recent Registrars Conference, the SECP is launching a comprehensive awareness drive to promote the advantages of incorporation among the business community. These benefits include limited liability, separate legal entity status, enhanced credibility and scalability, perpetual succession, structured governance, tax efficiency, easier access to finance, and stronger brand protection. The SECP remains committed to strengthening its digital infrastructure and streamlining regulatory processes to promote entrepreneurship, attract investment, and support sustainable economic development. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
SECP strongly recommends that personal lines insurance should be exempted from ST
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has strongly recommended the Federal Board of Revenue (FBR) to exempt personal lines insurance from the sales tax including health insurance. The SECP on Wednesday released a comprehensive report titled 'Healthcare Ecosystem in Pakistan.' With a special focus on the role of health insurance, the report highlights the state of the healthcare ecosystem, relevant stakeholders, market dynamics, and performance, along with key challenges hindering the optimization of healthcare delivery. The Insurance Reforms Committee formed by the Ministry of Commerce also recommended the removal of tax on health insurance as it increases the cost of insurance and eventually, makes healthcare expensive for the population. The assessment of the private health insurance market reveals that 99 percent of the health insurance market comprises corporate/ group business and only one percent with the individual/ retail market in terms of gross written premium for the year ended December 31, 2023. Only 31000 persons are covered under individual health and 6.5 million persons are covered under group health insurance. In a nutshell, the primary reasons for health insurance business losses include the rising costs of medical treatments due to inflation and currency depreciation, exaggerated bills of the insured population from private hospitals, and delayed claims management at the time of renewal and pricing, lack of product innovation and standardization, infrequent and inconsistent monitoring on underwriting practices, fraudulent claims reporting and varied third-party claims administrators practices along with inadequate automation and digitized processes, and lack of reinsurance support are some of the key causes of health insurance business in Pakistan. Despite healthcare being a priority area for the Government of Pakistan—as enshrined in Article 38 of the Constitution of Pakistan and recognized as one of the United Nations' (UN) Sustainable Development Goals — Pakistan ranks among the highest in out-of-pocket expenditures, according to the WHO Global Health Expenditure Database. At 47 percent, Pakistan's out-of-pocket spending far exceeds that of Sri Lanka (40pc), Malaysia (38pc), and China and Indonesia (both at 33pc). The development of the health insurance sector is one of the operational outcomes of the SECP's five-year strategic plan, 'Journey to an Insured Pakistan,' launched in December 2023. The report identifies various challenges and specific bottlenecks impeding the growth of the health insurance sector. Drawing from international best practices, it offers a strategic roadmap centred on key reform areas, including product innovation and inclusivity, conduct and administration, pricing and underwriting, oversight and monitoring, and creating a value-based health insurance ecosystem with enhanced private-sector participation. In his message, SECP Chairperson Akif Saeed emphasized the need for sector-wide integration, particularly the amalgamation of primary healthcare with universal health coverage through the participation of both public and private sectors. Commissioner Insurance Mujtaba A Lodhi further asserted that a broad-based, holistic national-level strategy — with the ownership of all relevant stakeholders—is essential for sustainable and comprehensive reforms in the sector. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Advancing market infrastructure: SBP chief lands SECP's efforts
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) held the 33rd Coordination Committee Meeting at the SECP Head Office in Islamabad. The SBP-SECP Coordination Committee serves as a high-level platform for strategic dialogue and regulatory coordination between Pakistan's two key financial regulators. It aims to strengthen collaboration, ensure policy alignment, and drive joint initiatives for the development and stability of Pakistan's financial system. Governor Jameel Ahmad underscored the importance of leveraging capital markets as an alternative and sustainable source of funding for the government. He noted that this approach would enable banks to focus more on financing the private sector and driving economic growth. He appreciated SECP's efforts in advancing market infrastructure and reaffirmed SBP's commitment to collaborative reform. SECP Chairperson, Akif Saeed, highlighted the pivotal role of banks in strengthening Pakistan's capital markets. He emphasized that closer linkages with capital market institutions and active collaboration could enable banks to fully leverage permissible opportunities, driving market growth and broader economic development. Key discussion areas included digital payment integration within the capital market, streamlined access to credit information for regulatory purposes, and potential solutions to address legacy credit data challenges. The Committee also reviewed progress on initiatives related to financial product innovation, shared digital infrastructure, and regulatory alignment in emerging sectors. Both institutions reaffirmed their commitment to continued cooperation in building a resilient, inclusive, and technology-driven financial ecosystem. Copyright Business Recorder, 2025
