Reform: SECP reviews rules to change regulatory culture
Smaller firms will be encouraged through less cumbersome regulations.
Under the new companies’ ordinance, smaller companies will be encouraged through less cumbersome regulations while making it easier for larger ones to raise and maintain capital. CREATIVE COMMON
ISLAMABAD:
Securities and Exchange Commission of Pakistan (SECP) Chairman Tahir Mahmood has said that the SECP is reviewing and amending a number of regulations and rules such as the Insurance Ordinance 2000, Securities Act 1969, SECP Act 1997, Companies Ordinance 1984 and the rules for Real Estate Investment Trusts (REITs).
The goal behind this is to introduce smooth, efficient and speedy processes and to lay down a scheme of regulation that is fair, open and transparent.
Mahmood stated this during a meeting with a delegation of the Pakistan Business Council (PBC), led by its Chairman Bashir Ali Muhammad.
He briefed the PBC delegates about future roadmap of the SECP, especially with regard to legal, fiscal and regulatory reforms.
Under the new companies’ ordinance, smaller companies will be encouraged through less cumbersome regulations while making it easier for larger ones to raise and maintain capital.
The SECP is considering doing away with many archaic concepts such as authorised capital, restrictions on raising capital and also considering introducing the concept of no par value shares, treasury shares, share warrants and partly paid shares. Once approved, this will be a major step in liberalisation pertaining to how companies raise the capital.
The commission is also focusing on issues related to protection of minority shareholders, minority buyout and representation of minority shareholders on the boards of companies.
The SECP chairman expressed the hope that the proposed amendments to the regulatory laws would help promote economic growth and prosperity in the country. He also sought suggestions of PBC members on the proposed amendments.
SECP Commissioner for Securities Market Division Zafar Abdullah and Commissioner Insurance Asif Arif were also present in the meeting.
Published in The Express Tribune, April 8th, 2014.
Securities and Exchange Commission of Pakistan (SECP) Chairman Tahir Mahmood has said that the SECP is reviewing and amending a number of regulations and rules such as the Insurance Ordinance 2000, Securities Act 1969, SECP Act 1997, Companies Ordinance 1984 and the rules for Real Estate Investment Trusts (REITs).
The goal behind this is to introduce smooth, efficient and speedy processes and to lay down a scheme of regulation that is fair, open and transparent.
Mahmood stated this during a meeting with a delegation of the Pakistan Business Council (PBC), led by its Chairman Bashir Ali Muhammad.
He briefed the PBC delegates about future roadmap of the SECP, especially with regard to legal, fiscal and regulatory reforms.
Under the new companies’ ordinance, smaller companies will be encouraged through less cumbersome regulations while making it easier for larger ones to raise and maintain capital.
The SECP is considering doing away with many archaic concepts such as authorised capital, restrictions on raising capital and also considering introducing the concept of no par value shares, treasury shares, share warrants and partly paid shares. Once approved, this will be a major step in liberalisation pertaining to how companies raise the capital.
The commission is also focusing on issues related to protection of minority shareholders, minority buyout and representation of minority shareholders on the boards of companies.
The SECP chairman expressed the hope that the proposed amendments to the regulatory laws would help promote economic growth and prosperity in the country. He also sought suggestions of PBC members on the proposed amendments.
SECP Commissioner for Securities Market Division Zafar Abdullah and Commissioner Insurance Asif Arif were also present in the meeting.
Published in The Express Tribune, April 8th, 2014.