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Equity Market
Despite several odds, the investment climate is Pakistan has been conducive. The stock market was opened for foreign investors on an equal basis with the local investors in 1991. This measure along with the government policy of privatization has resulted in rapid growth of the market since then. The privatization of state owned entities has given notable boost to the stock investments.
Besides local investors, foreign investment plays a vital role in the development of our capital market.
Legal Framework
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The securities market and the corporate sector are regulated by the provisions of the Companies Ordinance 1984. |
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The Securities and Exchange Ordinance 1969 and Rules framed there under in 1971. |
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The Securities & Exchange Commission Act 1997. |
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There are also Federal legislations relating to specific areas like |
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Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970.
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Investment Companies and Investment Advisors Rules 1971. |
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Modaraba Companies and Modaraba (Flotation and Control) Ordinance, 1980. |
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Companies (Issue of Capital ) Rules 1996. |
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Leasing Companies (establishment and Regulation) Rules 1996. |
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Asset Management Companies Rules 1996. |
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Insurance Companies Ordinance 2000. |
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In addition to above, the listed companies are also subject to the Rules and Regulations of
the stock exchanges. |
SECP - The Apex Regulator
The regulatory authority for the securities market and corporate sector in Pakistan is the Securities and Exchange Commission of Pakistan. The Commission was established on January 01,2025 by dissolving the Corporate Law Authority which was formed in 1981 under a Special Law. The Commission administers the compliance of the Corporate laws in the country. The Commission is run by the Commissioners under a Chairman.
The Commission has administrative, operational and financial autonomy and at the same time provides an accountability mechanism through establishment of a Securities and Exchange Policy Board. All policy decisions are made by the Board on the recommendations of the Commission which is also empowered to take suo motto action. The Board is directly answerable to the Parliament.
Members of the ISE are also subject to the discipline of self-regulation under various Rules and Regulations of the ISE. |
