The SECP annual report 2011-12 has highlighted the importance of launching of low-fee company concept, to encourage corporatisation and give incentives to non-corporate entities to enter into the corporate sector.
The SECP report has said that one of the focuses of the regulator in 2012-13 is to strengthen the equity market with introduction of a small and medium enterprises (SMEs) board.
For this purpose a technical committee comprising members from all the three stock exchanges and the SECP for introducing a mechanism for listing of small capital based companies.
An official of the SECP said that the commission was working over the concept and a high level meeting is scheduled to be held on Thursday (today) in this regard.
“It is likely that a decision will be made to establish counters in the stock exchanges for SMEs who do not want to enter the main exchange,” the official said and added that the move will eradicate informal economy and it will also help the small businesses to raise capital.
The idea of establishing one-stop-shop is being explored, providing facilities starting from registering a company to formally setting up its business under one roof. A concept paper has been shared with the ministry of finance and the World Bank.
The report has highlighted that the SECP is also working to encourage the introduction of new products such as Shariah-compliant investment alternatives as well as strengthening the equity market and development of derivative, debt, commodities and currencies markets.
However, the major stress of future plans are the implementation of e-services project, which includes mandatory online filing, as the SECP is considering making online submission of documents mandatory, in a phased manner, to boost the online services.
The e-services modules for voluntary winding up, licensing under Section 42 for non-profit associations and adjudication are being developed.
The other plan includes ‘Online Payment System’ to further enhance the services’ delivery to the corporate sector.
The SECP report has said that in order to accelerate growth in the debt market the possibility of listing of certain government debt instruments at the stock exchanges and integration of National Savings Scheme instruments into the mainstream capital market are being explored.
While, to promote transparency and price discovery of debt securities and to minimise pricing issues of debt securities, establishment of an independent Bond Pricing Agency (BPA) conforming to international standards is in the pipeline.
The report has highlighted that ‘Enforcement Department’ of the SECP is entrusted with the responsibility to ensure compliance with the applicable corporate laws, rules, regulations, accounting, financial reporting and auditing standards, by companies listed on domestic stock exchanges, public unlisted companies, private companies having paid-up capital of Rs7.5 million and above.
In pursuit of its objectives, the department focuses on safeguarding the shareholders’ interests and promoting good corporate governance by improving the standards of financial reporting and disclosures by companies.
The SECP is also working for formulating a code of conduct for trading/investment practices in the capital markets.
“The code of conduct is aimed at enhancing the control structure and policies of market intermediaries and financial institutions,” an official of the SECP said adding that the code of conduct are based on the essence that market participants and financial institutions should engage in trading/investment practices with the principles of good faith and fair business conduct.
These regulations expected to be implemented in the current financial year will be applicable to the securities market operations of asset management companies, brokers, commercial banks, DFIs, insurance companies, investment advisors, investment finance companies, leasing companies, housing finance companies, modaraba management companies and pension fund managers.
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Quelle/Source: Daily Times, 28.03.2013
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