Tag Archives: SECP

SECP holds workshop on insurance and takaful

Islamabad, October 06, 2018 (PPI-OT): In collaboration with the International Institute of Economics (IIIE), International Islamic University (IIUI) Islamabad, the SECP has conducted a workshop on insurance and takaful. The purpose of the workshop was to enhance financial literary, awareness and bridging the gap between academia and industry. The workshop included Shariah status and criticism of insurance and takaful, distinct models of takaful practiced around the globe, legal and regulatory framework of takaful, potential of takaful industry and way forward challenges faced by the takaful industry.

Mr. Syed Nayyar Hussain, director, Insurance SECP, Mr. Ali Qureshi, head of Actuarial Services Department, EFU Life Assurance, Mr. Tariq Saeed Chaudhry, area sales director, Pak Qatar Family Takaful Limited, Mufti Basheer Ahmed and senior faculty members of the university, addressed the workshop.

As per the spirit of MOU signed between SECP and IIUI, the event is the continuation of series of programs that are being organized recurrently to disseminate financial knowledge among students and teachers. The participants appreciated the efforts of the SECP and IIUI’s for bringing the academia and the insurance industry together.

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

1,101 new companies registered in August 2018

Islamabad, September 04, 2018 (PPI-OT): In August, the SECP registered 1,101 new companies. As compared to the corresponding month of last financial year, it represents a growth of 17 percent despite having Eid holidays, raising the number of registered companies to 89,702. The massive increase is the result of the SECP’s various reforms measures, i.e. introduction of simplified combined process for name reservation and incorporation, reduction of fee, assistance of incorporation by facilitation wings of CROs etc.

Around 74 percent companies were registered as private limited companies, while around 23 percent were registered as single member companies. Three percent were registered as public unlisted, non-profit associations, foreign companies and limited liability partnership (LLP).

The trading sector took the lead with the incorporation of 189 companies, construction with 165, services with 129, I.T. with 119, tourism with 68, food and beverages with 38, engineering with 35, real estate development with 31, textile with 24, education with 23, marketing and development with 22, corporate agricultural farming with 21, pharmaceutical with 20, healthcare with 19, auto and allied, and transport with 18 each, logging with 12, fuel and energy with 11 and 139 companies were registered in other sectors. Moreover, five foreign companies were also registered by CROs in Karachi, Islamabad and Lahore.

Foreign investment has been reported in 52 new companies. These companies have foreign investors from, China, France, Germany, South Korea, New Zealand, Portugal, Saudi Arabia, Turkey, the UK, the US and Yemen. The highest numbers of companies, i.e. 361 were registered in Islamabad, followed by 284 and 263 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Quetta, Gilgit-Baltistan, and Sukkur registered, 72, 41, 38, 19, 18 and 5 companies respectively.

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

1,076 new companies registered in July 2018

Islamabad, August 03, 2018 (PPI-OT): The SECP registered 1,076 new companies in July. As compared to the corresponding month of last financial year, it represents a growth of 30 percent as compared to corresponding period last year, raising the number of registered companies to 88,701. The massive increase is the result of the SECP’s various reforms measures, i.e. introduction of simplified combined process for name reservation and incorporation, reduction of fee, assistance provided for incorporation by facilitation wings of CROs etc.

Around 73 percent companies were registered as private limited companies, while around 24 percent were registered as single-member companies. Three percent were registered as public unlisted, non-profit associations, foreign companies and limited liability partnership (LLP).

The trading sector took the lead with the incorporation of 197 companies, construction with 135, services with 126, I.T. with 111, tourism with 46, real estate development with 35, education, marketing and development with 33 each, engineering with 32, corporate agricultural farming with 31, food and beverages with 25, broadcasting and telecasting, textile and transport with 18 each, fuel and energy and healthcare with 17 each, pharmaceutical with 15, cable and electric goods and paper and board with 11 each, and 147 companies were registered in other sectors. Moreover, 8 foreign companies were also registered by CROs in Karachi, Islamabad and Lahore.

Foreign investment has been reported in 47 new companies. These companies have foreign investors from Australia, China, Germany, South Korea, the Netherlands, Norway, Singapore, Spain, Thailand, Turkey and the UK. The highest numbers of companies, i.e. 432 were registered in Islamabad, followed by 285 and 175 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Gilgit-Baltistan, Multan, Faisalabad, Quetta, and Sukkur registered, 68, 49, 33, 21, 8 and 5 companies respectively.

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

Securities and Exchange Commission of Pakistan approves Employee’s Contributory Funds (Investment in Listed Securities) Regulations, 2018

Islamabad, June 14, 2018 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP) has introduced Employee’s Contributory Funds (Investment in Listed Securities) Regulations, 2018. The new regulations are aimed at improving safety regime for the employees contributing to various contributory funds while keeping in view the growth perspective of the return on such funds.

Previously, the employees’ contributions were regulated under the Employee’s Provident Fund (Investment in Listed Securities) Rules, 2016. The Companies Act, 2017, enhanced the scope of investment out of various contributory funds, instead of just provident fund. This necessitated the notification of the Employee’s Contributory Funds (Investment in Listed Securities) Regulations, 2018. The new regulations were prepared after extensive consultations.

With continuous innovation in equity and debt markets and development of new products by non-banking finance companies for better returns, contributory funds now have better choices available in the market. As risk and return go hand in hand, the SECP with a view to protecting the hard-earned money of the employees’ has notified these regulations. The new regulations prescribe requirements regarding investment out of contributory funds maintained by the companies. They have also addressed major issues of the market participants comprehensively.

With respect to risk coverage and enhancement of employees’ wealth, the average total return formula has been replaced with dividend payment of 15% in 2 out of 3 preceding consecutive years. Moreover, three separate asset classes have been introduced, i.e. money, debt and equity market.

In the new regulations, the sector-wise investment limits have been introduced along with security-wise limits on investments other than investment through collective investment schemes. The assigned minimum rating of AA on bonds, redeemable capital, debt securities or instruments issued by a statutory body or listed debt securities has also been reduced/revised to A instead of AA.

A sub-regulation regarding appointment of investor advisor for direct equity investment of Rs50 million and above has been introduced. In addition, the trust or funds are advised to amend the trust deed and include a clause providing one time option to the new employees for either allowing or not allowing the fund or the trust to make any investment out of their contributory fund or trust under these regulations.

The duly approved regulations has also been placed on the SECP’s website, which can be downloaded from the following link www.secp.gov.pk/document/sro-731-i-2018-notification-to-employees-contributory-fund-investment-in-listed-securities-regulations-2018

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

Securities and Exchange Commission of Pakistan approves Employee’s Contributory Funds (Investment in Listed Securities) Regulations, 2018

Islamabad, June 14, 2018 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP) has introduced Employee’s Contributory Funds (Investment in Listed Securities) Regulations, 2018. The new regulations are aimed at improving safety regime for the employees contributing to various contributory funds while keeping in view the growth perspective of the return on such funds.

Previously, the employees’ contributions were regulated under the Employee’s Provident Fund (Investment in Listed Securities) Rules, 2016. The Companies Act, 2017, enhanced the scope of investment out of various contributory funds, instead of just provident fund. This necessitated the notification of the Employee’s Contributory Funds (Investment in Listed Securities) Regulations, 2018. The new regulations were prepared after extensive consultations.

With continuous innovation in equity and debt markets and development of new products by non-banking finance companies for better returns, contributory funds now have better choices available in the market. As risk and return go hand in hand, the SECP with a view to protecting the hard-earned money of the employees’ has notified these regulations. The new regulations prescribe requirements regarding investment out of contributory funds maintained by the companies. They have also addressed major issues of the market participants comprehensively.

With respect to risk coverage and enhancement of employees’ wealth, the average total return formula has been replaced with dividend payment of 15% in 2 out of 3 preceding consecutive years. Moreover, three separate asset classes have been introduced, i.e. money, debt and equity market.

In the new regulations, the sector-wise investment limits have been introduced along with security-wise limits on investments other than investment through collective investment schemes. The assigned minimum rating of AA on bonds, redeemable capital, debt securities or instruments issued by a statutory body or listed debt securities has also been reduced/revised to A instead of AA.

A sub-regulation regarding appointment of investor advisor for direct equity investment of Rs50 million and above has been introduced. In addition, the trust or funds are advised to amend the trust deed and include a clause providing one time option to the new employees for either allowing or not allowing the fund or the trust to make any investment out of their contributory fund or trust under these regulations.

The duly approved regulations has also been placed on the SECP’s website, which can be downloaded from the following link www.secp.gov.pk/document/sro-731-i-2018-notification-to-employees-contributory-fund-investment-in-listed-securities-regulations-2018

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

17% growth in companies registration at Securities and Exchange Commission of Pakistan

Islamabad, June 07, 2018 (PPI-OT): In May, the Securities and Exchange Commission of Pakistan (SECP) registered 1,094 new companies. As compared to the corresponding month of last financial year, it represents a growth of 17 percent, raising the total number of registered companies to 86,876.

The massive increase is the result of the SECP’s various reforms measures, i.e. introduction of simplified combined process for name reservation and incorporation, reduction of fee, assistance of incorporation by facilitation wings of CROs etc. Around 76 percent companies were registered as private limited companies, while around 22 percent were registered as single member companies. Two percent were registered as public unlisted, non-profit associations and foreign companies.

The trading sector took the lead with the incorporation of 178 companies, services with 153, Information Technology with 135, construction with 132, tourism with 42, food and beverages with 39, real estate development with 36, education with 33, engineering with 32, corporate agricultural farming with 26, transport with 21, textile, pharmaceutical and marketing and advertisement with 19 each, auto and allied with 18, broadcasting and telecasting with 16, chemical, fuel and energy and health care with 12 each, communication and power generation with 11 each and 118 companies were registered in other sectors. Moreover, 5 foreign companies were also registered by CRO Islamabad and Karachi.

Foreign investment has been reported in 56 new companies. These companies have foreign investors from, Canada, China, Czech Republic, Denmark, Iran, Jordan, Korea (South), Lebanon, Nepal, the Netherlands, Oman, Saudi Arabia, Singapore, Tanzania, Turkey, Ukraine and the US. The highest numbers of companies, i.e. 402 were registered in Islamabad, followed by 271 and 226 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Gilgit-Baltistan Faisalabad, Quetta, and Sukkur registered, 60, 42, 39, 31, 14 and 9 companies respectively.

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk