About SECP

About SECP

The Securities and Exchange Commission of Pakistan (SECP) was set up in pursuance of the Securities and Exchange Commission of Pakistan Act, 1997.

The SECP was initially responsible for the regulation of corporate sector and capital market. Over time, its mandate has expanded to include supervision and regulation of insurance companies, non-banking finance companies and private pensions. The SECP has also been entrusted with oversight of various external service providers to the corporate and financial sectors, including chartered accountants, credit rating agencies, corporate secretaries, brokers, surveyors etc.

About SECP

Markets & Businesses Regulated

  • Stock & Commodity Exchanges
  • Depository and Clearing Institutions
  • Stock & Commodity Brokerage Business
  • Asset Management Business
  • Investment Advisory Business
  • Investment Banking Business
  • Insurance Companies
  • Insurance Brokerage Business
  • Leasing Companies
  • Mutual Fund Distributors
  • Credit Rating Companies

ABOUT

The Securities and Exchange Commission of Pakistan (SECP) was set up in pursuance of the Securities and Exchange Commission of Pakistan Act, 1997. The SECP was initially responsible for the regulation of corporate sector and capital market.

Over time, its mandate has expanded to include supervision and regulation of insurance companies, non-banking finance companies and private pensions. The SECP has also been entrusted with oversight of various external service providers to the corporate and financial sectors, including chartered accountants, credit rating agencies, corporate secretaries, brokers, surveyors etc.

What We do?

SECP recognizes the strategic importance of investors’ education to create financial literacy for protection of investors’ rights as well as to raise their financial capability in order for them to make informed investment decisions. Investors’ education not only enhances investor sophistication but also helps regulators and financial service providers to maintain market discipline. It also educates investors on strategies to mitigate risks associated with various investment products, engendering investor’s confidence and leading to an effective investor’s protection regime.

The Securities and Exchange Commission of Pakistan (SECP), pursuant to the SECP Act of 1997 has been mandated to regulate and develop the corporate sector and the non-bank financial markets; including the capital markets, mutual funds, non-banking financial companies (NBFCs), modarabas, insurance companies and private pensions. The regulatory objectives of the SECP are to; maintain fair, orderly and efficient markets, promote robust corporate and insurance sector, protect rights of investors, facilitate capital formation and develop an efficient and dynamic regulatory framework.

Why The Need?

Statistics reflect that Pakistan has an extremely minute savings and investments environment such as insurance penetration and participation in pension and mutual funds, coupled with comparatively lower investor participation in the capital markets.

Furthermore, only 14% of Pakistanis use a financial product or service from a formal financial institution which shows a lack of access to formal financial products. One of the main reasons for such low involvement in the financial markets by Pakistanis is a lack of awareness of products available and lack of education towards the benefits of investing in financial products. Cognizant of the need for investor education and awareness in Pakistan, also to fulfill its regulatory obligations, the SECP developed a comprehensive three years Investors’ Education Program which is part of its wider goal towards protecting investors more adequately, spreading awareness and literacy across Pakistan for the betterment of not just individuals but the economy as a whole, leading towards the sustainability of an adequate savings culture in the country.

To undertake the program on a broad scale, the SECP has partnered with key capital market stakeholders, the Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE), Islamabad Stock Exchange (ISE), Pakistan Mercantile Exchange (PMEX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL) and Mutual Funds Association of Pakistan (MUFAP) to undertake a single investor education program across the nation. Key elements of the program such as educational material drafted and seminars run will all be branded under the head of the Institute of Capital Markets (ICM).