SECP rationalises fee structure

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has rationalised the fee structure payable to the registrar and the commission under the Sixth Schedule of the Companies Ordinance, 1984, a statement said on Wednesday.

Through this notification, the SECP has reduced the registration fee for physical submission of documents for incorporating a company, with nominal capital up to Rs10 million. The reduction in fee for incorporation of the companies with less capital would encourage the small and medium enterprises to enter the documented corporate sector, it said.

SECP invalidates Askari’s appointment

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has directed the Karachi Stock Exchange (KSE) and its board to immediately refrain Haroon Askari from functioning or exercising any powers of the managing director and of a board director as his appointment is in violation of the Regulations 2005, according to a commission letter on Wednesday.

The commission in its letter to the KSE noted that as per the regulations of the Constitution of the Governing of Board of Directors of Karachi Stock Exchange, 2005, as well as the Artifices of Association of the Karachi Stock Exchange, the managing director can only be appointed by the KSE board with the prior approval of the SECP.

SECP advocates new regulations for managing conflicts of interest

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has noted that new regulations for the management of conflicts of interest are required to prevent any further loss of investors’ confidence in the financial system.

The SECP in its report “Efficient regulation of conflicts of interest facing market intermediaries”, published by International Organisation of Securities Commission (IOSCO) in October said that the market discipline in the form of penalties and litigation, which is focused towards limiting conflicts, is important.
Market intermediaries include the securities firms carrying out financial investment services such as brokerage, dealing, asset management service, etc., regardless of the type of financial products.

The market intermediary could also provide corporate finance services such as initial public offering (IPO) underwriting and merger and acquisition consulting.

SECP wants mutual funds exempted from workers fund

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has called upon the Finance Ministry to exempt pooled-investment and open-ended mutual funds from contribution to the Workers Welfare Fund.

In its recommendations for the Finance Bill 2010, the commission said mutual funds, provident funds, approved pension funds, gratuity funds and superannuation funds are structured as trust in compliance with the commission’s regulatory framework and income tax rules.

SECP detects 22 cases of insider trading, other irregularities

KARACHI: The Securities Market Division of the Securities & Exchange Commission of Pakistan (SECP) has detected 22 cases of violation of laws, including insider trading and imposed penalties on the stock exchange members and other market stakeholders, said a statement issued on Monday.

During the last one year, the Securities Market Division had detected 22 cases of insider trading, price manipulation, short- and blank-selling, wash trades, broker misconduct and non-compliance of the listing regulations, it said.

SECP to conduct pre-ballot scrutiny of all ‘issue of shares’

The Securities and Exchange Commission of Pakistan (SECP) has decided to conduct a pre-ballot scrutiny of all “issue of shares” to curtail the menace of making fictitious and multiple applications for subscription of shares, officials told The News on Monday.

Efforts are afoot to rationalise the cost of issue of corporate bonds, especially the cost relating to stamp duties paid on the issue and transfer of corporate bonds, they said. The year 2010 has so far proved to be better than the previous year, as five initial public offerings (IPOs) surfaced in just four months. Amtex Limited, Agritec Limited, Fatima Fertilizer and Safe Mix launched their IPOs, while Wateen Telecomís offering is scheduled on April 20. A cumulative of 397.67 million shares was offered in these offerings.

SECP’s corporate portfolio crosses 55,000 companies

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has registered 293 companies during March, taking the total corporate portfolio as on March 31, 2010 to 55,200 companies.

Authorised capital and paid-up capital of the companies incorporated during the month amounted to Rs4,329.45 million and Rs451.82 million, respectively.

SECP Company Law Director Mohammad Siddique said that as the investors have reposed confidence in the overall economic situation and improvement in the law and order situation new companies are being incorporated in the commission.

SECP issues directives to insurance companies

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued directives to insurance companies to improve their performance in order to arrest the decline in the sector.
It said that insurance plays a vital role in the growth of economy. However, the insurance industry continues to show sluggish growth and the current insurance penetration in Pakistan is only 0.7 per cent of GDP, which is also one of the lowest in the region.

SECP registered 237 companies in Dec 2009

Friday, January 08, 2010
By our correspondent

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) registered 237 companies during December 2009 as compared to 189 companies registered during previous month, reflecting an increase of 25 per cent, said a news statement issued by the commission here on Thursday.

SECP seizes funds of spinning mill

Thursday, January 07, 2010
By our correspondent

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday seized the funds of Ahmed Spinning Mills Ltd (ASML) on depriving its shareholders of their rightful share of Rs213.425 million and authorised an investigation into the matter.

The decision came after the reports that the directors of ASML has sold its investment at a throwaway price to an off-shore shell company and subsequently these investments were sold in a public offer at a price of Rs333 per share, thus depriving shareholders of their rightful share of Rs213.425 million.

SECP allows KESC to issue right shares

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday allowed the Karachi Electric Supply Company to issue 14.5 per cent right shares to its existing shareholders.

An SECP official said that the commission had also directed the two majority shareholders Abraaj and the government of Pakistan to provide an undertaking on their part that the right shares would be subscribed by them and the unsubscribed would also be subscribed by the two partners.

12 foreign cos registered with SECP in Nov

By Israr Khan

ISLAMABAD: Despite poor law and order situation in the country due to war on terror, the economy still has potential to attract foreign investors as during November 12 foreign companies registered themselves with the Securities and Exchange Commission of Pakistan (SECP). It sends a strong signal to foreign investors to invest in various untapped sectors of the country.

The 12 companies belong to different countries around the globe including Australia, USA, Russia, Germany, China, Italy, Turkey, Bangladesh, Iraq and Lebanon.