Securities and Exchange Commission of Pakistan: Regulating Pakistan’s Financial Markets

The Securities and Exchange Commission of Pakistan (SECP) is the primary regulatory body responsible for overseeing the affairs of Pakistan’s capital markets. Established in 1999, the SECP headquarters is located in Islamabad.

History and Mandate

• Established in 1999 as part of a larger government effort to modernize and reform the financial sector
• Plays a pivotal role in ensuring transparency, accountability, and investor protection within Pakistan’s financial system
• Regulates and supervises various capital market activities, such as:
  • Trading of securities
  • Licensing and supervision of brokerages and investment advisors
  • Registration of public companies

Strengthening the Financial Sector

Over the past two decades, the SECP has implemented various measures aimed at strengthening the financial sector and promoting investor confidence:

• Introduced stringent disclosure requirements for public companies
• Established a securities depository
• Implemented measures to combat insider trading and market manipulation

Financial Literacy and Education

In addition to its regulatory roles, the SECP also plays a key role in fostering financial literacy and education within Pakistan:

• Collaborates with academic institutions and civil society organizations to promote financial literacy and investor education
• Focuses on reaching underprivileged communities and rural areas

Challenges and Commitment

Despite the challenges posed by a rapidly evolving financial landscape and a fragile economy, the SECP remains committed to its mission of preserving the integrity and stability of Pakistan’s financial markets:

• Strong regulatory framework
• Proactive approach to addressing emerging issues.