Karachi, February 7, 2024 – The Pakistan Tax Bar Association (PTBA) has fervently called upon the Securities and Exchange Commission of Pakistan (SECP) to proactively update its guidelines and eliminate procedural hurdles, fostering a more conducive environment for all facets of the business realm.
In a missive directed to the SECP chairman, the PTBA articulated that its members, engaged with SECP offices nationwide, were grappling with formidable challenges, thereby inflicting hardships on nascent startups and prospective investors venturing into Pakistan.
The communication underscored that the issues transcended mere concerns of timelines, penalties, and technical glitches on the SECP portal.
“The impediments extend far beyond the realms of time constraints, penalties, and technical glitches on the SECP portal. They now constitute an array of impediments obstructing corporate expansion and disheartening new investors and ventures,” asserted the letter.
The PTBA delineated that the imposition of time-bound digital certified copies posed a cumbersome burden on investors. This, combined with exorbitant fees for physical copies, created an unwarranted barrier for investors and stakeholders alike. Advocating for a pragmatic approach, the PTBA urged the SECP to rationalize these charges by incorporating certified copy fees into the broader framework of company registration costs.
In an era where online filings and registrations predominate, the continuous accessibility of the SECP portal is of paramount importance. Regrettably, the letter highlighted, the portal frequently succumbs to unavailability, causing significant delays in compliance procedures and filings.
Moreover, the PTBA emphasized the imperative need for the SECP to regularly update its guidelines, serving as a beacon for businesses by elucidating restrictions that might encumber their initial adaptability and operational trajectories.
While acknowledging the importance of stringent penalties for non-compliance, the PTBA sounded a note of caution. It posited that an overly punitive approach might dissuade increased corporatization in Pakistan, as businesses could perceive the SECP as an inhospitable regulatory entity.
A salient recommendation put forth by the PTBA was the decentralization of the corporate winding-up process. Despite the submission of facile exit/winding-up applications at any SECP office, the procedural processing predominantly occurs in Lahore, leading to protracted turnaround times. This, in turn, compels applicants to anxiously pursue follow-ups repeatedly.
In a denouement to the missive, the PTBA implored the SECP chairman to undertake requisite measures, thereby fostering a culture of corporatization in Pakistan. The appeal resonated with the idea of a progressive regulator, attuned to the diverse needs of both local and foreign investors, as well as burgeoning startups.
