Seminar on Corporatization, Corporate Compliance and eServices

In order to raise awareness among the business community and other stakeholders of the importance of corporatization, corporate compliance requirements and eServices, the SECP organized a seminar in collaboration with the Sialkot Chamber of Commerce and Industry at Sialkot Chamber of Commerce and Industry. 

Mr. Liaqat Ali Dolla, Joint Registrar-in charge, SECP’s Company Registration Office, Lahore, spoke on ‘Corporatization, Corporate Compliance and eServices’. He highlighted the importance of corporatization and corporate compliance followed by a detailed briefing regarding eServices project of the SECP. He also talked about salient measures taken by the SECP for the purpose of increase in corporatization and corporate compliance and encouraged feedback from the participants for making the SECP’s existing services more efficient.

Ms. Sidra Mansur, Deputy Registrar of Companies, Company Registration Office, Lahore, explained the e-processes in detail from creation of eServices account to the requirements of electronically incorporating a company and filing different statutory returns for the purpose of compliance with the post incorporation statutory requirements. 

Mr. Naeem Anwar Qureshi, president of Sialkot Chamber of Commerce and Industry, appreciated the SECP’s contribution in the development of corporate sector and capital markets and expressed an interest in holding these seminars on a regular basis. The participants asked various technical questions and gave some useful suggestions for further improvement in services provided by the SECP.

Being the apex regulator of corporate sector, the SECP has always collaborated with the professional and trade bodies in the past, and plans to conduct more seminars and workshops in collaboration with other professional and trade bodies as well, in near future to seek their feedback and to create an environment of mutual trust between the business community and regulator, for enhancing corporate compliance of companies  through improvement in its services and by creating awareness  among the stakeholders.

SECP holds seminar on online incorporation, eServices

The SECP held a seminar on online incorporation, eServices and measures to increase corporatization at the Rawalpindi- Islamabad Tax Bar Association, Rawalpindi.

Mr. Muhammad Siddique, Registrar of Companies, highlighted various measures of the SECP to facilitate the corporate entities and consultants.  He also explained that fast-track services would be launched shortly.

Mr. Shaukat Hussain, Additional Registrar, CRO, Islamabad, answered participants’ questions and sought their suggestions for further improvement.

A detailed presentation was made by Mr. Muhammad Akram Qureshi, Deputy Registrar, covering the relevant provisions of the Company Laws especially highlighting different aspects of incorporation of companies and post incorporation statutory compliance.

Mr. Muhammad Jamil Aamir, Assistant Registrar, explained various steps of online filing, creation of eServices accounts for availability of name and further steps/procedure for online incorporation and efiling of various statutory returns.

The participants included practicing chartered accountants, cost and management accountants, lawyers and corporate practitioners.

Mr Shaukat Baluch, President, Rawalpindi-Islamabad Bar Association, appreciated the efforts of the SECP and suggested that such seminars may be held on a regular basis for the benefits of the corporate sector and professionals.

Experts compare notes on developing corporate sector at SECP Forum

At the first meeting of the SECP Financial Markets and Corporate Sector Development Forum on Thursday in Karachi key market experts, industrialists and policymakers shared their ideas on developing fair, transparent and efficient financial markets and a vibrant corporate sector.

The forum was a gathering a select group of best minds in the market. It was aimed at seeking guidance from the rich and diversified experience of key stakeholders from various sectors and professions, including Mr Shoukat Tareen, Mr Hussain Dawood, Mr Iqbal Ali Lakhani, Dr Ishrat Hussain, Mr Zakir Mahmood, Mr Shahid Ghaffar, Mr Mahmood Mandiviwala, Mr Shabbar Zaidi, and Mr. Omer Moershed.

While opening the session, Mr Mohammad Ali, the SECP Chairman, remarked that the SECP recognizes the need for developing vibrant markets, sectors and market players as well as for improving their capabilities and processes. That’s why it has engaged the external stakeholders in a consultative process both at policy level of the SECP Forum and working level of sector-specific committees. The ideas and suggestions shared at the forum will steer the SECP to be an effective regulator of the markets and contribute to the capital formation leading to the growth of the economy, he said. He stated that the guidance taken from the policy level of the SECP Forum will be implemented at the working level and would reflect in the SECP’s actions in the near future.

The forum discussed various issues that hampered the growth and development of the markets and corporate sector in the country and have resulted in fragmentation in the markets. The issues identified range from the access to capital for the SME sector and the outreach expansion of non-bank financial sector to the SME and rural areas of the country, development of second tier of financial institution after the banking sector, enhancing the investor base in the capital markets, implementation of an effective legal framework covering corporate rehabilitation, de-mutualization of stock exchanges and future trading etc. The participants also highlighted the immediate need for implementing Corporate Rehabilitation Act and De-Mutualization Act and urged the SECP to push forward the process in this regard.

The need to work on corporate governance and restructuring of SOEs, implementation of the national warehousing project to improve functioning of commodities exchanges and the need to clearly define DFIs role for infrastructure and industrial development of the country was also emphasized by the participants. Mr Tahir Mahmood, Commissioner, SECP, apprised participants of the improvements in the legal framework of the takeover and the corporate law that are under consideration at the Corporate Law Review Commission that has been reactivated by the SECP.

The forum in Karachi was the first event as part of the SECP’s monthly programme which will alternate between Karachi, Lahore and Islamabad inviting stakeholders from industry, regulators, academia, media, sector associations, multilateral agencies, market participants, and other important players. The second meeting of the forum will take place in Lahore

SECP tells holding companies to enhance public disclosure

ISLAMABAD: Group Companies Registration Regulations, 2008, were issued by the Securities and Exchange Commission of Pakistan in 2008 to provide a regulatory framework for the formation of group companies, comprising a holding company and its subsidiaries and to streamline the group ownership structures.

The Regulations provided a registration mechanism of holding companies along with their subsidiaries as a group with the SECP, and also provided an enabling framework for the group companies intending to avail themselves of tax relief from the FBR.

In order to further enhance the public disclosure of intra-group shareholding and financial position of the group companies, it has now been required that all the holding companies registered under the Regulations shall maintain their websites and place thereon the annual audited financial statements of their group along with their directors’ report and the auditors’ report. SRO No. 640(I)/2011 was issued on June 22, 2011, mandating the aforesaid requirement, and the holding companies have been required to report the compliance by intimating the SECP of their website address within 15 days of the issuance of the notification.

SECP proposes changes in NBFC Regulations, 2008

The Securities and Exchange Commission of Pakistan (SECP), vide S.R.O. 350 (I)/2011 dated May 5, 2011, has proposed certain amendments to the NBFC & Notified Entities Regulations, 2008 (the “Regulations”) and have also placed these amendments on its website to solicit comments from the public and concerned quarters.

While allowing operational flexibility to fund managers, measures have also been introduced to ensure investor protection. It is a step forward by the regulator for a more conducive regulatory framework to help the industry participants to benefit from growth opportunities.

The significant amendments encompass:

1. Replacement of seed capital requirements with minimum fund size to offer flexibility to fund managers in launching new mutual funds;

2. Restricting annual equity brokerage paid by a mutual fund to a single broker to 10% of its total brokerage expense, for promoting competitive brokerage services. Besides minimizing concentration risk posed to mutual funds, such measures are also aimed at encouraging other financial market participants to benefit from the diversified brokerage services rather than routing bulk transactions through single or a few brokers.

3. Empowerment of unit holders for decisions on material aspects of a mutual fund including transfer of its management rights;

4. Enhancement of role of trustees of mutual funds to ensure better safeguarding of unit holder interests and prohibiting them from investing in mutual funds for which they act as trustee.

5. Imposition of 5% cap on investment by a single unit holder in a mutual fund with the objective to contribute towards broadening the investor base.

6. Removal of minimum lease period for any lease to provide operational flexibility to leasing companies;

The SECP, as part of its continuous efforts for development of the capital markets has proposed the amendments in accordance with the best international practices and are aimed at encouraging the growth of mutual funds.

Any suggestions or comments on the proposed amendments may be submitted by May 21, 2011 at NBFC.Comments@secp.gov.pk

SECP nominate Aftab Ahmad Khan, Mumtaz Hussain Syed, Asif Kamal and Bushra Naz Malik as LSE directors

The Securities and Exchange Commission of Pakistan (SECP) has nominated high profile and experienced professionals from the financial and capital markets as directors on the Board of Lahore Stock Exchange (LSE) for 2011.

They are Mr. Aftab Ahmad Khan, Group Director (Finance & Accounts), Nishat Group; Mr. Mumtaz Hussain Syed, Chief Executive, Crosby Capital Pakistan (Private) Limited; Mr. Asif Kamal, Chairman, Trust Investment Bank Limited; and Ms. Bushra Naz Malik, former Group Director, Finance and Chief Financial Officer, Kohinoor Maple Leaf Group.

They come from the fields of project finance, accounts and investment banking have valuable capital market and corporate sector experience and can be seen as a fair mix of the requisite qualification and skills on the LSE Board.

Mr.. Aftab Ahmad Khan, Fellow Member of the Institute of Chartered Accountants of Pakistan, has over 40 years of diverse professional experience. Presently, he is the Group Director (Finance & Accounts) of the Nishat Group, in which capacity he looks after financial and strategic planning and investment appraisal for the Group. Additionally, he is serving as Director on the Boards of the MCB Bank Limited and various other companies in the textile, paper, energy and hotel/ tourism sectors. He also served in the public sector organizations including Punjab Industrial Development Board dealing with Ghee, Sugar and Rice Milling and has been Director at the National Investment Trust Limited, Karachi from 2008 to 2010.

Mr. Mumtaz Hussain Syed, an investment banker by profession, has more than 22 years of extensive experience in the fields of project finance, investment management and analysis, business development and general management and has several high profile transactions in energy, telecommunications, banking, financial services industry and other sectors to his credit. Presently, he is the Chief Executive of the Crosby Capital Pakistan (Private) Limited which is providing financial advisory, business restructuring and management consulting services to various clients. Holding an MBA degree from the Lahore University of Management Sciences, he possesses extensive capital market experience covering privatizations, acquisitions, divestitures, debt arrangement, equity placement and joint ventures. He has also served on the Board of Directors of a number of listed companies as well as advisory positions with the government of Pakistan.

Mr. Asif Kamal, a graduate in Finance from the Business School of the University of South Florida, is presently the Chairman of Trust Investment Bank Limited: one of the leading investment banks in Pakistan. He is also the Chief Executive of Tricon Developers Limited, a real estate development company. He has also served as the Chief Executive of Genesis Securities Private Limited from 1994 to 2006, which is a financial advisory company. His professional and capital market experience accumulating up to more than 16 years, Mr. Kamal is also a member of the Federal Board of Investment since 2008 and a member of the Board of the Privatization Commission since 2010.

Ms. Bushra Naz Malik, Fellow Member of the Institute of Chartered Accountants of Pakistan, has over 16 years of professional and financial market experience which includes her 12-year tenure as the Group Chief Financial Officer of the Nafees Group of Industries, Lahore and a 4-year term as the Group Director, Finance and Chief Financial Officer of the Kohinoor Maple Leaf Group. She did her MBA at Kellogg Business School in the US and the Schulich Business School, Canada. She also has an LLB degree from the Punjab College and Advanced Management Program certification from the Harvard Business School.

It is expected that the LSE Board of Directors, in particular, and the capital markets in general, will greatly benefit from the mix of extensive knowledge, experience and diverse expertise the above professionals will be offering, and that the said individuals will be contributing positively towards promoting principles of good governance and transparency.

Mufti Munib ur Rehman appoints as Memeber of Modarba religious board

ISLAMABAD, March 11: The federal government has appointed the renowned religious scholar Professor Mufti Munib ur Rehman as a member of the Religious Board for Modarabas (Islamic financial institutions) with immediate effect. The appointment has been made in pursuance of Section 9 of the 1980 Modaraba Companies and Modaraba (Floatation and Control) Ordinance.

This position fell vacant with Mr. Imran Ahsan Nyazee’s resignation. Mufti Munib ur Rehman will serve out the remaining term.

The board considers applications for floatation of modaraba in light of Shariah. It provides guidance, based on the teachings of Islam, to the Registrar (Modarabas) of the Securities and Exchange Commission of Pakistan.

SECP registered 323 companies in January

The Securities and Exchange Commission of Pakistan (SECP) registered 323 companies in January.

The highest share in new incorporations was of private companies totaling 290. Other companies include 20 single-member companies, 2 public unlisted companies, 6 non-profit associations, 4 foreign companies and one trade organization.

Of 323 companies, the highest incorporation of 53 companies each was witnessed in the services and trading sector, followed by 18 in Hajj and Umrah services, 17 in I.T., 16 in construction, 12 each in textile and communications, 11 in engineering, 10 in pharmaceuticals, 9 each in chemical, education, transport, and food and beverages, 8 each in power generation and fuel and energy, and 7 each in auto and allied, and corporate agricultural farming.

During January the Company Registration Office (CRO), Lahore, registered highest new incorporation of 108 companies followed by the CRO in Islamabad and Karachi registering 93 and 75 companies, respectively. The CROs of Peshawar, Multan and Faisalabad registered 17, 14 and 12 companies each while CROs in Quetta and Sukkur registered 3 and 1 company respectively.

The authorized capital and paid-up capital of 323 companies, is Rs1,774 million and Rs 712.08 million respectively. During the month, 51 companies increased their authorized capital with the aggregate authorized capital increment of Rs8.46 billion and 74 companies raised their paid-up capital with the total paid-up capital increment amounting to Rs13.6 billion.

SECP holds seminar on corporatization and e-Services

The Securities and Exchange Commission of Pakistan (SECP) held a seminar on corporatization and e-Services project of the SECP in Karachi in collaboration with Management Association of Pakistan.

This seminar was organized as part of the SECP initiative to encourage corporatization and create awareness about the eServices project. After e-Services launch in September 2008, such seminars have already been held in various cities of the country including Karachi, Lahore, Islamabad, Faisalabad, Multan, Rawalpindi and Sialkot.

This seminar was attended by participants from various companies as well as corporate consultants.

Mr Ibtesam Moatisim Khan, Director, Management Information System, delivered a presentation on the “e-Services Project of SECP” and also provided solutions to the difficulties faced by the users of eServices. The significance of eServices as an easy and cost-effective mode of filing of documents with SECP and new developments in e-Services were shared.

Mr. Sidney Custodio Pereira, in charge, CRO Karachi, apprised the participants of “corporatization and the role of SECP”.

The participants greatly appreciated the questions and answers session. They complimented the SECP on successful implementation of e-Services.

Famous cricket commentator, Mr Chishty Mujahid, now the Executive Director, MAP, expressed his gratitude to the SECP saying that MAP would continue to arrange such informative and interactive sessions with the SECP.

43 investor complaints were resolved during the month by SECP

ISLAMABAD, November 11: As part of its enforcement and regulatory function, the Enforcement Department of the Securities and Exchange Commission of Pakistan passed 34 orders, fining defaulting companies besides issuance of 37 show-cause notices in October, whereas proceedings against five companies were closed with warnings.

The department imposed an aggregate penalty of Rs9.399 million on listed and unlisted companies in October for non-compliance of various provisions of the 1984 Companies Ordinance. The department also resolved 43 investors’ complaints during the month.

SECP receives overwhelming response to amnesty schemes

The Securities and Exchange Commission of Pakistan (SECP) have received an overwhelming response to its amnesty scheme for regularization of belated returns and easy exit facility to dormant companies, which was launched on July 1, 2010 for three months.

Under the Company Regularization Scheme (CRS) some 250 companies have regularized their defaults and have filed 700 returns by July 27, 2010. Similarly, under the Companies Easy Exit Scheme (CEES) around 100 companies have applied to avail themselves of the exit facility.

The schemes have been launched for three months from July 1, 2010 to September 30, 2010 (in three phases of one month period each) with different fee schedule. The first phase of the schemes would be closed on July 31, 2010. However, the documents under Phase- I shall be accepted by Monday August 2, 2010 due to holiday on July 31, 2010. As such, only three days have been left in closing of the first phase.

The regularization scheme was applicable to all types of companies other than listed companies, and enabled acceptance of overdue returns and annual accounts by paying only normal filing fees plus one half of the normal filing fee as additional fee without any penalties, during the first month. However, in the second month of the scheme, the fee will increase and the late submission of documents will be accepted by paying of normal filing fees plus one time the normal filing fee as additional fee.

The SECP always facilitates the corporate sector in compliance of law through simplification of procedures. The schemes will increase compliance of law by registered companies and also help weed out the dormant ones.

SECP starts online survey on services provided by Company Registration Offices

Islamabad, July 9: Securities and Exchange Commission of Pakistan (SECP) has started an online survey on its website, entitled ‘Survey on Services provided by the Company Registration Offices’. The survey is available at http://sraposrc/secsurvey/index.php?sid=99227&lang=en

The survey is aimed at eliciting feedback and suggestions from companies, consultants and other stakeholders, on the services extended by the SECP at its eight regional offices called the Company Registration Offices (CROs). The CROs play a vital role as the front offices of the SECP having direct interface with the public. They are located in the provincial capitals and in industrial hubs of the country. They mainly function as corporate registry and are the custodian of corporate records.

Consisting of 25 simple multiple-choice questions, the survey takes only a few minutes to complete. It also includes specific questions on eServices, seeking inputs from the participants, with a view to making it more user-friendly.

The SECP encourages the users of services provided by the CROs, to share their opinions about the existing service delivery system and also to make their suggestions for future improvement. This will enable the SECP to further extend its facilitation and to provide more efficient services to the utmost satisfaction of the stakeholders.