functional
profile
Market Monitoring & Surveillance
and Beneficial Ownership Wing (MSW)
The Wing is responsible for monitoring
trading activities at the stock exchanges on real–time basis.
The MSW keeps a close watch on price movements of scrips, monitors
abnormal prices and turnover, detects cases of market manipulation
and insider trading and conducts detailed investigations in such
cases. The Beneficial Ownership section of this wing is responsible
for monitoring the trading activities of beneficial owners of listed
companies and detects cases where beneficial owners of companies
have managed to make gain on account of transactions made within
the period of six months. Such amount of gain is recoverable as
an arrear of land revenue.
Brokers and Agents Registration,
Inspection and Complaints Wing
The Wing is entrusted with registration
of brokers and agents, undertaking inspections of brokers and handling
investor complaints. The registration of brokers and agents establishes
a direct regulatory nexus for ensuring investor protection and observance
of Code of Conduct annexed to the Brokers and Agents Registration
Rules, 2001. In order to infuse discipline within stock exchanges
and their members, the Wing undertakes inspection of books and records
of the members of stock exchanges. The Wing also plays an instrumental
role in ensuring effective redressal of investor complaints and
grievances, particularly those of small investors. In an effort
to ensure investor protection and provide relief to aggrieved investors,
it works in close coordination with stock exchanges.In case of defaulting
members, it works diligently in monitoring the default procedures
to provide relief to investors aggrieved by such defaults.
Stock Exchanges, Depository and Clearing,
Policy and Regulation Wing (SEW)
The SEW is responsible for the development and review of policies and regulations governing key capital market institutions, including stock and commodity exchanges, central depository company, national clearing company and other market participants. The wing is also responsible for improving the regulatory and operational efficiency of the capital market by providing a regulatory regime that conforms to international best standards and ensures compliance with the IOSCO principles. SEW endeavors to base its regulatory philosophy on the principle of developmental regulation and places great emphasis on investor protection, improved risk management, market development and creating market conditions which boost investor confidence, transparency and foster growth of the Pakistani Capital Market.
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. The 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, cases requiring enforcement
actions under the Listed Companies (Substantial Acquisition of Voting
Shares and Takeovers) Ordinance, 2002, 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.
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