KARACHI: Akif Saeed, Chairman, Securities and Exchange Commission of Pakistan (SECP) Wednesday held meeting with stakeholders to discuss measures for growth of capital market.
(more…)Tag: SECP
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SECP company registration tops 182,598 by November 2022
ISLAMABAD: The total number of registered companies with Securities and Exchange Commission of Pakistan (SECP) increased to 182,598 by end of November 2022, a statement said on Monday.
The SECP registered 2,380 new companies in November, 2022, indicating an increase of 10 per cent as compared to corresponding period last year.
Total capitalization (paid-up-capital) of the newly incorporated companies is PKR1.9 billion.
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Among the newly incorporated companies, about 59 percent were registered as private limited companies, 39 percent as single member companies and 2 percent were public unlisted companies, not for profit associations, trade organizations and limited liability partnership (LLP).
About 99.9 percent of companies were registered online. In November, the SECP also registered three investment companies / micro finance companies with paid-up capital of Rs.255 million.
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In November, the real estate development & construction sector took the lead with incorporation of 407 companies followed by the information technology with 347 and trading with 300 companies subsequently, services with 258, food & beverages with 87, education with 82, tourism with 81, corporate agricultural farming with 76, ecommerce with 70, marketing & advertisement with 63, engineering with 62, textile with 57, pharmaceutical with 50, healthcare with 43, mining & quarrying with 38, chemical with 37, fuel & energy with 35, transport with 31, power generation with 30, communications with 27, cosmetics and toiletries and lodging with 18 each, broadcasting & telecasting with 14, auto & allied and paper & board with 13 each, cables and electrical goods with 12, arts and culture with 9, and 102 companies in other sectors.
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Foreign investment has been reported in 85 new companies from Afghanistan, Austria, Australia, Canada, China, Germany, Hongkong, Jordan, Korea South, Mauritius, Nigeria, Norway, Oman, Singapore, South Africa, Spain, Tunisia, Turkey, UAE, UK and the US.
As a result of SECP’s eServices integration with FBR and various provincial departments, 2,211 companies were registered with FBR for generation of NTN, 57 companies with EOBI, 32 companies with PESSI/SESSI and 43 companies with excise and taxation department.
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SECP slaps penalties worth Rs4.78 billion on companies in FY22
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has slapped monetary penalties amounting PKR 4.78 billion on registered companies during fiscal year 2021-2022.
The SECP on Friday issued annual report for fiscal year 2021-2022. It said building on the initiatives of the previous fiscal year of establishment of a dedicated supervision division and a dedicated adjudication division, the SECP has concluded 579 cases through orders imposing penalties amounting to Rs77 million on listed companies and licensed entities on account of violation of relevant laws.
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Likewise, 85,519 orders were issued to unlisted companies imposing penalties amounting to Rs4.701 billion.
SECP Chairman Aamir Khan has expressed his satisfaction that the Commission has achieved significant progress in multiple areas including transparent and fair enforcement, promoting ease of doing business, supporting innovation and entrepreneurship, financial inclusion and market development.
In his message Amir Khan said that in pursuit of developmental reforms “the over-arching enablers were identified as promoting digitalisation, simplifying regulatory structure, reducing cost of compliance and invigorating the exchange of ideas and concepts with market participants and stakeholders”.
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This year, while moving further towards a functional based structure, the SECP has successfully consolidated its licensing activity under a centralized department. The centralization of licensing will bring uniformity, efficiency and transparency into the issuance and renewal of licenses, and related approvals.
Other significant progress includes the issuance of digital mortgage certificates and acknowledgements of annual and other returns; issuance of digital CTCs of the company’s statutory returns and digital company profile.
To facilitate easy exit, an online portal of Companies’ Easy Exit has been launched. Moreover, the process of company incorporation has been centralized at the head office to standardize and facilitate expeditions processing.
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The SECP, in coordination with SBP, has also launched an exclusive digital portal, which enables banks to certify a company’s filings. In FY 2021-22, numerous reforms were introduced in the capital market to bring efficiency, transparency, depth and ease for the investors.
The process for submitting IPO applications by the issuers/companies has been automated. The opening of news accounts by small investors was made very simple through a new category of “Sehl Account”, wherein investors can be onboarded through microfinance banks backed by telecom providers.
Further, to simplify investment in mutual funds, Pakistan’s first mutual fund digital distribution platform, namely “Emlaak Financials” has been launched by the central Depository Company (CDC). The pension funds have been allowed to invest in REITs, Private Equities, Venture Capital Funds and ETFs.
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Moreover, pension funds have also been allowed passive investment strategies in the form of Index sub-fund. In addition, financial institutions including Banks, DFIs, PDs, AMCs etc. have been allowed to act as market makers, thereby increasing secondary debt market liquidity.
So far, 16 financial institutions have been registered as market makers. For the first time, the SECP has awarded a NBFC license to operate as a P2P lending platform on a commercial basis.
The P2P operations of NBFC were successfully tested under SECP’s regulatory sandbox. To provide immediate responses and guidance regarding company incorporation, the SECP has launched WhatsApp and Wechat service.
Through the service which is the first of its kind in Pakistan’s public sector, the SECP has handled 29,681 queries during FY 2021-22, having a satisfaction ratio exceeding 89 per cent.
The SECP also handled 10,204 complaints through its digital complaint dashboard (Service Desk Management System – SDMS), out of which, 9,761 (96 per cent) stand resolved/closed and the remaining are at different stages of being addressed.
SECP Chairman Aamir Khan said: “SECP will continue promoting innovation through closer collaboration with our regulated sectors, academia and incubators.”
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Company registration rises to 180,996: SEC Pakistan
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has said that total company registration has increased to 180,996 by end of October 2022.
According to a statement the SECP registered 2,361 new companies in October 2022. “This shows an increase of 17 per cent as compared to corresponding period last month. The total number of registered companies now stands at 180,966,” the SECP added.
READ MORE: SECP’s company registration goes up to 169,919 till May 2022
Foreign investment has been reported in 77 new companies. These companies have foreign investors from Afghanistan, Austria, Australia, Bangladesh, China, Denmark, Iran, Italy, Jordan, Korea (South), Lebanon, Lithuania, Norway, Saudi Arabia, Singapore, Yemen, Tunisia, Turkey, the UAE, the UK and the US.
Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood Rs3 billion.
READ MORE: SECP, FBR integration brings 2,365 companies under tax net
In October, about 60 per cent companies were registered as private limited companies, while 37 per cent were registered as single member companies. About three per cent were registered as public unlisted companies, not profit associations, foreign companies and limited liability partnership (LLP). Nearly 99.8 per cent companies were registered online.
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The real estate development and construction sector took the lead with incorporation of 432, information technology with 355, trading with 279, services with 234, food and beverages with 93, e-commerce with 92, tourism with 84, education with 83, corporate agricultural farming with 72, marketing and advertisement with 56, engineering with 45, power generation with 44 and 814 companies were registered in other sectors.
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As a result of integration of SECP with the Federal Board of Revenue (FBR) ad various provincial department, 1,969 companies were registered with the FBR for generation of National Tax Number (NTN), 81 companies with Employees Old-age Benefit Institution (EOBI), 47 companies with PESSI/SESSI ad 57 companies with excise and taxation department.
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Total company registration increases to 176,329 in Pakistan
ISLAMABAD: Total registration of companies in Pakistan has increased to 176,329 by end of August 2022, according to official statement issued on Monday.
Securities and Exchange Commission of Pakistan (SECP) said it registered 2,362 new companies in August 2022, raising the total number of registered companies to 176,329.
“This shows an increase of 16 per cent as compared to corresponding period last year,” the SECP said.
Total capitalization (paid-up capital) with regard to the newly incorporated companies for the current month stood at Rs4.9 billion.
READ MORE: SECP’s company registration goes up to 169,919 till May 2022
SEC Pakistan said foreign investment had been reported in 70 new companies. These companies have foreign investors from China, Czech Republic, Egypt, Germany, Hong Kong, Iran, Korea South, Malaysia, Maldives, Mongolia, Morocco, the Netherlands, Nigeria, Poland, Portugal, Singapore, Somlia, Spain, Sri Lanka, Syria, Thailand, Turkey, UAE, UK, Ukraine, the US, Vietnam, and Yemen.
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In August, about 59 per cent companies were registered as private limited companies, while 38 per cent were registered as single member companies. Three per cent were registered as public unlisted companies, not for profit associations, foreign companies and limited liability partnership (LLP).
About 99.8 per cent companies were registered online, while 94 foreign users were registered from overseas.
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The real estate development and construction sector took the lead with incorporation of 418, trading with 318, information technology with 307, services with 234, tourism with 97, food and beverages with 91, ecommerce with 84, education with 78, marketing and advertisement with 69, textile with 65, engineering with 58, power generation with 44, transport with 43, corporate agricultural farming with 39, mining and quarrying with 35, chemical with 34, healthcare with 31 and 317 companies were registered in other sectors.
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As a result of integration of SECP with the Federal Board of Revenue (FBR) and various provincial departments, 1796 companies were registered with the FBR for generation of National Tax Number (NTN), 78 companies with Employees Old-age Benefit Institution (EOBI), 46 companies with PESSI/SESSI and 50 companies with excise and taxation department.
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SECP’s company registration goes up to 169,919 till May 2022
ISLAMABAD: The total number of company registered with the Securities and Exchange Commission of Pakistan (SECP) has increased to 169,919 up to May 30, 2022.
The SECP registered 1,906 new companies in May 2022. This shows an increase of 19 per cent as compared to corresponding period last year.
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Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood at Rs3.5 billion.
Foreign investment has been reported in 51 new companies from Afghanistan, Bangladesh, Canada, China, Germany, Italy, Korea South, Norway, Poland, Romania, Singapore, Sri Lanka, Thailand, the UK and the USA.
In May, about 63 percent companies were registered as private limited companies, while 35 percent were registered as single member companies. Two percent were registered as public unlisted companies, not for profit associations, foreign companies and limited liability partnership (LLP).
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About 99.8 percent companies were registered online, while 195 foreign users were registered from overseas.
The real estate development & construction sector took the lead with incorporation of 334, trading with 282, information technology with 260, services with 172, tourism with 69, education with 65, ecommerce with 64, food & beverages, and textile with 56 each, marketing & advertisement with 54, corporate agricultural farming with 43, transport with 42, engineering with 41, pharmaceutical with 40, healthcare, and chemical with 31 each, mining & quarrying with 26, auto & allied with 23, power generation with 22, logging with 21, cables and electric goods with 20, cosmetics & toiletries with 17, communication with 14, broadcasting & telecasting with 13, fuel & energy with 12, and 98 companies were registered in other sectors.
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As a result of integration of SECP with Federal Board of Revenue (FBR) and various provincial departments, 1,562 companies were registered with FBR for generation of National Tax Number (NTN), 41 companies with Emplyees Old-Age Benefit Institution EOBI, 22 companies with PESSI/SESSI, and 26 companies with Excise and Taxation department, simultaneously through the SECP portal interface.
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SECP, FBR integration brings 2,365 companies under tax net
ISLAMABAD: The integration between Securities and Exchange Commission of Pakistan (SECP) and Federal Board of Revenue (FBR) has brought 2,365 companies under tax registration.
A statement issued by the SECP stated that as a result of integration of SECP with FBR and various provincial departments, 2,365 companies were registered with FBR for generation of NTN, 40 companies with EOBI, 16 companies with PESSI/SESSI and 37 companies with Excise and Taxation department.
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The SECP said that the total registration with the commission reached to 160,989 by end of January 2022.
While it registered 2,448 new companies in January 2022 witnessing an increase of 10 per cent as compared to corresponding period, last year.
About 62 percent companies were registered as private limited companies, while 36 percent were registered as single member companies. Two percent were registered as public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnership (LLP).
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About 99.5 percent companies were registered online while 225 foreign users were registered from overseas. Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood at Rs.3 billion.
Foreign investment has been reported in 53 new companies. These companies have foreign investors from Afghanistan, Australia, Canada, China, Egypt, Germany, Hungary, Iran, Italy, Jordan, Korea South, Peru, Philippines, Russia, Saudi Arabia, South Africa, Turkey, the UK and the US.
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In January’s incorporations, the real estate development & construction sector took the lead with incorporation of 427, information technology with 365, trading with 290, services with 212, tourism with 129, e-commerce with 119, education with 111, food and beverages with 89, marketing and advertisement with 69, engineering with 58, textile with 56, pharmaceutical with 43, corporate agricultural farming with 42, healthcare with 40, chemical with 35, transport with 34, mining and quarrying, and power generation with 29 each, lodging with 26, auto and allied, and fuel and energy with 22 each, communications, and cosmetics and toiletries with 21 each, cables and electric goods, and paper and board with 17 each, steel and allied with 13, arts and culture with 12, broadcasting and telecasting with 10, and 90 companies were registered in other sectors.
READ MORE: Company registration rises to 145,913 by June 2021: SECP
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RDA: SECP exempts banks from obtaining license
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has exempted banking companies from obtaining licenses to undertake regulated securities activity as security advisors.
A notification issued by the SECP stated that it had granted an exemption to the banking companies licensed and authorized by the State Bank of Pakistan (SBP) to open RDA and perform the function of distributing units of Collective Investment Schemes (CIS) and/or Voluntary Pension Schemes (VPS) of multiple Asset Management Companies (AMCs) to their RDA holders, from the requirement of obtaining a license to undertake regulated securities activity as security advisor.
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“Provided that such banking companies shall comply with all other requirements prescribed under the applicable regulatory framework,” the SECP said.
The regulator said that the measure has been taken to facilitate overseas Pakistanis to invest in mutual funds and private pension funds managed by AMCs, and comes as part of SECP’s efforts to increase investor-base in Pakistan’s capital markets by enabling investments through RDAs.
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However, the permission is only applicable to banks that are eligible to open RDAs. For transfers to accounts other than RDAs, the license requirement is still applicable under Securities & Future Advisor Regulations, 2017.
It is expected that this initiative will broaden the range of available investment avenues for Overseas Pakistanis and increase flow of foreign remittances to the country.
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MoU signed for digital aggregation of insurance products
KARACHI: Insurance Association of Pakistan (IAP) and Central Depository Company of Pakistan Limited (CDC) has signed a Memorandum of Understanding (MoU) for digital aggregation of insurance products CDC’s Emalaak Financials platform.
Sadia Khan, Commissioner – Securities and Exchange Commission of Pakistan (SECP) presided at the MoU Signing Ceremony at the CDC House, Karachi.
At the occasion, describing the features of the platform, CEO CDC Badiuddin Akber said: “This Fintech solution of ‘Emlaak Financials’ is indeed a landmark initiative of national significance, as it aims to become ‘Digital Financial Super Market’ in Pakistan by leveraging the potential of technology to increase outreach for various financial products.”
Azfar Arshad, Chairman IAP applauded the efforts of CDC and SECP and said that this initiative will pave the way for the growth of the Insurance Industry.
While addressing the occasion, Commissioner SECP – Ms. Sadia Khan said that this digital transformation is expected to have an impact throughout the insurance value chain, from underwriting and pricing of products, their marketing, and distribution, through to claims processing and the ongoing customer servicing.
The distribution of insurance products through the digital portal EMLAAK is expected to provide low-cost and centralized solutions to policyholders by providing comparative cost-benefit analysis of different products on a centralized platform.
This will lead to a reduction in the protection gap as new market segments are accessed as well as an increase in the insurance penetration.
The goal of the regulator is to enable the insurance industry to play its rightful role both in terms of providing the social safety net as well as the development of the capital market.
She commended the role of CDC in bringing this new initiative to life by capitalizing on its technological capability.
The event was attended by the senior members of IAP’s Executive Committee and other high-ranking officials of the Insurance industry.
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SEC Pakistan amends regulations to facilitate startups
ISLAMABAD: The Securities and Exchange Company of Pakistan (SEC Pakistan) has amended regulations to facilitate startups and small companies in raising equities through conventional modes.
The regulator introduced amendments in the Companies (Further Issue of Shares) Regulations, 2020 to address the impediments faced by the corporate sector, particularly startups and small companies, in raising equity through conventional modes, according to a statement issued on Wednesday.
Key changes include permission to convert one class of shares into another class, issuance of shares with differential rights without the approval of the SECP, and specification of mechanism for valuation of non-cash assets.
As per the law, companies can have more than one kind of share conferring varying rights of dividend, voting, and participation depending upon the needs of its capital providers. The requirement of prior approval of SECP has now been abolished. Such a measure will considerably help reduce the administrative burden and will contribute towards the growth of the fast-paced corporate world by removing a layer of regulatory approval.
Another vital amendment is to permit conversion of one class or kind of shares into another class or kind e.g. ordinary into preference shares. Currently, the Regulations only allow conversion of preference shares into ordinary shares while no mechanism is provided for other classes of shares.
The change aims to facilitate companies in maintaining an optimal capital structure considering their own financial needs and the demands of their shareholders.
Besides, a complete mechanism for the valuation of immovable property, intangible assets, or services has been introduced.
Now, the consulting engineers registered with Pakistan Engineering Council and QCR rated chartered accountant firms will be eligible to conduct valuation for the purposes of the Act.
These amendments have been introduced in consideration of numerous queries and suggestions received from small companies and startups, and are at par with the international jurisdictions.