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Tag: Securities and Exchange Commission of Pakistan

  • Total company registration increases to 176,329 in Pakistan

    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.

    READ MORE: SECP, FBR integration brings 2,365 companies under tax net

    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.

    READ MORE: RDA: SECP exempts banks from obtaining license

    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.

    READ MORE: SEC Pakistan amends regulations to facilitate startups

    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.

  • SECP’s company registration goes up to 169,919 till May 2022

    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.

    READ MORE: SECP, FBR integration brings 2,365 companies under tax net

    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).

    READ MORE: RDA: SECP exempts banks from obtaining license

    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.

    READ MORE: SEC Pakistan amends regulations to facilitate startups

    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.

    READ MORE: MoU signed for digital aggregation of insurance products

  • SECP, FBR integration brings 2,365 companies under tax net

    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.

    READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

    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).

    READ MORE: RDA: SECP exempts banks from obtaining license

    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.

    READ MORE: SECP warns against investing in fraudulent schemes

    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

  • SEC Pakistan amends regulations to facilitate startups

    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.

    SECP warns against investing in fraudulent schemes
  • SEC Pakistan brings reforms in voluntary pension system

    SEC Pakistan brings reforms in voluntary pension system

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Wednesday introduced amendments to Voluntary Pension System (VPS) Rules, 2005 with the intention to bring reforms to facilitate greater pension penetration in the country.

    The SEC Pakistan said that private pension funds established under the VPS Rules are professionally managed saving-cum-investment vehicles, that enabled salaried and self-employed Pakistanis (including non-resident Pakistanis) to contribute during their working life, to accumulate savings available after retirement.

    The regulator said that the reforms while maintaining the flexibility of individualized asset allocation, have introduced a number of measures including easier transferability between pension fund managers and funds, added flexibility to fund managers to allocate various expenses within the total permissible expense limit allowing pledging of pension account against employer loan and removal of SECP’s prior approval for VPS advertisement.

    Furthermore, in order to streamline adjustment in requirements over time, matters related to pricing, obligation, and performance of pension funds have been shifted from Voluntary Pension System Rules to the Non-Bank Finance Companies Regulations, 2008.

    The SEC Pakistan said that the reforms constitute an important step forward in ensuring protection for the elderly while safeguarding its sustainability in the future.

    It is expected that the revamped framework will not only pave the way for the growth of private pension funds, but also enhance financial inclusion and provide much needed dept to Pakistan’s capital markets.

    SECP warns against investing in fraudulent schemes
  • SECP warns against investing in fraudulent schemes

    SECP warns against investing in fraudulent schemes

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday warned the general public against investing in any fraudulent investment schemes, which promise hefty profits and unrealistic incentives.

    The SECP has been constantly clarifying that mere registration of a company, does not authorize it to solicit deposits from the general public or offer investment schemes.

    It has been observed recently that a company namely “Econex Sales and Marketing (Private) Limited” is offering various packages to attract the public to its unlawful business activities of multi-level marketing (MLM) and referral marketing.

    The said company is using its registration status with SECP to win public confidence, deceptively implying that such activities are being undertaken through SECP’s regulated platform.

    As clearly provided in the explanation of section 301 of the Companies Act, 2017, raising unauthorized deposits from the general public, indulging in referral marketing, MLM, Pyramid, and Ponzi Schemes are unlawful activities in terms of explanation of section 301 of the Companies Act, 2017.

    The SECP, in accordance with the provisions of the Companies Act, has initiated necessary legal action against M/s Econex Sales and Marketing (Private) Limited.

    In view of the foregoing, the general public is hereby expressly advised in their own interest to be careful, not to invest their hard-earned money or indulge in illegal schemes launched by this company, actively being propagated through social media accounts and pages.

    The same caution may be exercised in the case of any other company involved in any illegal deposit-taking, unauthorized investment, or MLM schemes.

    Probe in Hascol financials underway: SECP
  • Date extended for implementing capital requirement

    Date extended for implementing capital requirement

    KARACHI: The Securities and Exchange Commission of Pakistan (SECP) on Monday extended the implementation of liquid capital requirement on securities brokers up to September 01, 2021.

    Pakistan Stock Exchange (PSX) in a notice said that the SECP had approved that the cutoff date for phased implementation of minimum of Liquid Capital (LC) and relevant ratios had been further extended till September 01, 2021. Securities brokers shall be required to maintain minimum LC effective from September 01, 2021.

    Securities brokers shall submit to the securities exchange and the clearing house the audited financial statements disclosing the LC or submit reviewed half yearly LC statements, whichever is applicable, depending on the end of financial year, from cutoff date of June 30, 2021 onwards as par the regulatory requirements.

  • Probe in Hascol financials underway: SECP

    Probe in Hascol financials underway: SECP

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) took notice of HASCOL’s reported accounts for the period ending June 30, 2019 in October 2019, according to a statement issued on Tuesday.

    In this regard, the SECP has diligently followed its requisite internal protocols in compliance with its mandated role and responsibility.

    However, being the apex corporate regulator of the country, SECP has to conclude its proceedings after following due process as envisaged under the law.

    The SECP does not comment on its regulatory actions until they are finalized and orders are issued, at which stage they are published on its website without any exception. However, recently some misreporting in the print media has been undertaken that is devoid of facts and has been published without seeking SECP’s version.

    The SECP has been and continues to remain vigilant and proactive in swiftly dealing with any regulatory violations that fall within its ambit.

    SECP greatly respects and values its ongoing relationship with the media which almost invariably reports on SECP’s activities in a measured, responsible and fair manner. However, it expects that reporting on matters currently under consideration of SECP should not be based on conjecture or incorrect hearsay.

  • Company registration rises to 145,913 by June 2021: SECP

    Company registration rises to 145,913 by June 2021: SECP

    ISLAMABAD: The total number of companies registered with the Securities and Exchange Commission of Pakistan (SECP) has increased to 145,913 by end June 2021, a statement said on Friday.

    The commission registered 2,504 new companies in June 2021, indicating a growth of 63 per cent as compared to corresponding period last year.

    Ninety-nine per cent of these were incorporated online and 45 per cent applicants were issued registration certificates the same day, whereas 203 new foreign users were registered from overseas.

    Of the newly registered companies, 65 percent were registered as private limited companies, 31 percent as single member companies and four percent as public unlisted companies, not for profit associations, foreign companies and limited liability partnership (LLP). Total capitalization (paid-up-capital) of newly incorporated companies for the current month is amounted to Rs3.3 billion.

    The construction & real estate sector took the lead with the incorporation of 474, trading with 382, I.T with 275, services with 216, ecommerce with 129, food & beverages with 105, textile with 86, corporate agricultural farming with 76, education with 66,  engineering, and market & development 54 each, pharmaceutical with 50, healthcare with 45, tourism with 39, mining & quarrying, and transport with 36 each, chemical with 34, auto & allied with 33, cables & electric goods with 31,  logging with 27, communication with 26, power generation with 24, paper & board, and cosmetics & toiletries with 19 each, steel & allied with 18, broadcasting & telecasting, and  fuel and energy with 16 each, wood & wood products with 13 and 105 companies were registered in other sectors.

    Foreign investment has been reported in 66 new companies. These companies have foreign investors from Austria, Azerbaijan, Bangladesh, China, France, Germany, Ghana, Hong Kong, Iran, Italy, Kyrgyzstan, Malawi, Mexico, the Netherlands, Nigeria, Oman, Philippines, Qatar, Russia, Singapore, Slovakia Republic, Sweden, Syria, Turkey, the UK, Uruguay and the US.

    The highest numbers of companies, i.e. 810 were registered in Islamabad, followed by 807 and 394 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 174, 127, 98, 62, 22, and 10 companies respectively.

  • SEC Pakistan imposes monetary penalty of Rs4bn on B4U Group for raising illegal deposits

    SEC Pakistan imposes monetary penalty of Rs4bn on B4U Group for raising illegal deposits

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has imposed a heavy penalty of Rs4 billion on B4U group for raising deposits illegally and operating pyramid schemes.

    In a tweet message on Sunday, the SECP said that it had concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes, in violation of the Companies Act, 2017.

    The B4U Group comprises of 18 companies incorporated under the Act, as well as five unincorporated business setups. All the 18 companies were registered during the last two years. The main sponsor of B4U Group is Saif-ur-Rehman, along with his immediate family member.

    The SEC Pakistan, after completing the due process of law, has disqualified the sponsors of B4U Group becoming a director of any company for a period of five years and has also imposed a penalty of Rs100 million on each of its sponsors. Further, the sponsors shall not be allowed to incorporate any new company under the Act.

    “In addition the SECP has granted sanction for winding up of all 18 companies of B4U Group and imposed a penalty of Rs200 million on each company. Aggregate penalties amounting to Rs4 billion have been imposed on B4U Group.”