Stock Exchanges, Depository and Clearing House Wing
The SEDC is mandated with formulating the regulatory framework of the three stock exchanges, the CDC and the NCCPL. This entails devising regulatory framework for these capital market entities for improved risk management in their operations and procedures, introduction of new products and systems, good governance, increased transparency and improved investor protection etc. The SEDC is also responsible to continuously review and revamp the existing regulatory framework in view of the changing market needs and to keep abreast of the international developments including compliance with relevant IOSCO Objectives and Principles of Securities Regulation.
The Wing is actively involved in the development of new products and systems for the equity markets, aimed at providing new avenues of liquidity and investment alternatives to the investors and the market participants, and improving efficiency and efficacy of the procedures in place at these entities. This includes formulating detailed methodology/ product or system design for the introduction of new financial products (leverage, equity, derivatives etc.) and systems in collaboration with these entities and other relevant stakeholders.
The SEDC processes registrations and is empowered to grant renewals on behalf of the Commission to the capital market entities entrusted with the depository and clearing functions.
In order to effectively discharge its functions, the Wing maintains a close liaison with the Boards of Directors and managements of these entities and other Governmental agencies and Ministries. The SEDC through active representation on various forums, committees and focus groups facilitates continuous review of the capital markets for proactive identification of areas for growth and development of the capital markets.
The Wing is also entrusted with carrying out the powers of the Commission for ordering suspension and delisting of securities of the non-compliant companies at the stock exchanges in the best interests of the market and the investors.
Commodities and Derivatives Wing
The CC is presently responsible for formulating the regulatory framework and for continuously reviewing/revamping the existing regulatory framework of the Pakistan Mercantile Exchange Limited (PMEX) for improved risk management, introduction of new products and systems, good governance and transparency, improved investor protection and for accommodating the changing local and international market needs.
The CC is involved in diversifying the existing product portfolio of the PMEX in commodities and currencies by introducing products targeting hedging and speculative needs of various market segments for enhancing activity and for broadening the investor base. This includes introduction of new commodities and currencies futures contracts and changes to the contract specifications of the existing contracts in line with international best practices and suitability of these contracts according to the local market needs.
The Wing processes registrations of commodities exchanges on behalf of the Commission.
Debt Capital Market Wing
The DCM is responsible for devising SECP reform agenda for the organized development of an active and transparent secondary debt capital market in Pakistan. DCM’s scope entails carrying out reform initiatives to address prevailing shortcomings in the existing structural, regulatory and operational framework of the debt market for more synchronized development of the Pakistani capital markets as a whole. The Wing is involved in developing and reviewing policies and regulations for the debt market including new product development and system enhancements etc. based on international legal standards and best practices. The roadmap prepared by DCM entails extensive stakeholder consultation for ensuring effective implementation of the same through task identification with the capital market infrastructure institutions and other relevant stakeholders.
Capital Issues Wing
The Capital Issues Wing (CIW) deals with the cases regarding approval of prospectuses for public issue/offer of securities. The prospectus of any company inviting public subscription for its securities is required to be approved by the SECP under the Companies Ordinance, 1984 prior to its issue, circulation and publication. CIW also processes cases regarding issue of securities outside Pakistan under Section 62-A of the Companies Ordinance, 1984, registration of Special Purpose Vehicles (SPV) under the Companies (Asset Backed Securitization) Rules, 1999, relaxation from the requirements of the Companies (Issue of Capital) Rules, 1996 pertaining to Initial Public Offerings and cases reported under Section 18-A of the Securities and Exchange Ordinance, 1969 which prohibits submission of more than one application by a single applicant for subscription of shares.