The Securities and Exchange Commission of Pakistan (SECP) announced new regulations on Tuesday in order to promote corporate, commercial and economic growth in the country.
SECP is the financial regulatory authority whose remit is to develop an efficient corporate sector and a vibrant capital market based on sound principles, in order to encourage investment and foster economic growth and integration in Pakistan.
The commission has just recently, answering to the need of the hour, revamped its operations into a new divisional structure that recognizes growth opportunities. It plans to establish new incorporation and facilitation desks at its regional offices in Lahore, Karachi and Islamabad. Under new regulations proposed by SECP, new companies will take no more than a day or two to be registered. This is a great news for everyone involved or aiming to get involved with a personal enterprise.
Online Registration and Payment System
Additionally, SECP has also introduced an online registration and payment system. Online payment lowers the costs for businesses as the more payments made electronically the less they spend for paper and postage. With online payment, it is not necessary for the payer to make the effort of a personal visit, as payment is made with the ease of just a click of a mouse.
SECP’s online registration allows a business or a startup to register online. Businesses can register any time online at National Institute of Facilitation Technology (NIFT)’s official website. The new reforms will facilitate online payment of fee through credit cards, online transfer of funds and online issuance of digital signatures. The Digital Signature Certificate Request Form will be available on NIFT’s site (https://secp-live.niftetrust.com/secp/). The whole registration process takes less than a day to complete.
On Tuesday Dec. 27, SECP issued an official statement saying:
“Further, in order to reduce the turnaround time in business start-up and ease the process of incorporation, registration of companies with a single object has been allowed, which will enable registration of companies on the same day subject to the condition that the registration documents are filed under online mode. This swift mode of registration is likely to further corporatization of the business sector.”
Role of ‘SECP’ as a Regulatory Authority
The role of SECP has been explained in THE GAZETTE OF PAKISTAN, Part-1, issued on DEC. 26, 1997. According to the official document,
The Commission shall be responsible for the performance of the following functions:
- regulating the issue of securities;
- regulating the business in Stock Exchange and any other securities markets;
- supervising and monitoring the activities of any central depository and Stock Exchange clearing house;
- registering and regulating the working of stock brokers, sub-brokers, share transfer agents , investment advisers and such other intermediaries who may be associated with the security market.
- proposing regulations for the registration and regulating the working of collective investment schemes
- prohibiting fraudulent and unfair trade practices relating to securities markets.
SECP continues to expand its reach to other cities across Pakistan like Gilgit-Baltistan, Sialkot and Abbottabad. These much-needed reforms will help enhance the rapid growth in startup and venture sector, and speed up digitization of Pakistan’s economy.