SECP stresses effective market oversight

Reviews safeguards against illegal deposit taking, investment schemes


APP November 29, 2024

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ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) is aiming for greater transparency and investor confidence through effective supervision and enforcement measures.

"Through its centralised supervision function, the SECP continues to maintain effective oversight of capital markets and regulated businesses," said a statement issued on Thursday.

In a recent commission meeting, a critical review of the ongoing supervisory activities for regulated businesses was carried out, with a special focus on pooled investment-related businesses, such as mutual funds, insurance companies and brokerage houses.

Measures were discussed to further safeguard investors against illegal deposit taking and investment schemes.

The commission emphasised the importance of following the standard operating procedures (SOPs) to actively deal with the pending court cases. At present, 53 investigations and 30 criminal complaints filed by the commission are under stay order from the relevant courts.

The SECP appreciated the recently concluded review of the mutual fund industry with the objective of protecting investor interests.

In line with the international best practices, it aspires to have an even stronger supervisory model for pooled investment vehicles through the use of technology and modern techniques. This will enable the regulator to receive early warning signals and take remedial measures swiftly.

Recognising the significance of the insurance sector and public interest at stake, the SECP said that it had continued to focus on overseeing business practices and identifying vulnerable players to restore the confidence of policyholders.

It appreciated the refund of an additional Rs162 million by insurance companies to their policyholders due to the regulator's intervention.

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