Securities and Exchange Commission of Pakistan (SECP)

Basic Information

The Securities and Exchange Commission of Pakistan (SECP) is the corporate and financial regulatory agency of Pakistan, established to promote a modern and efficient corporate sector and capital market. It operates under the Securities and Exchange Commission of Pakistan Act, 1997, ensuring compliance with financial regulations, investor protection, and market integrity. The SECP’s headquarters is located in Islamabad, with regional offices in Karachi, Lahore, Multan, Peshawar, Sukkur, Faisalabad, Quetta, and Gilgit-Baltistan.

Historical Background

The SECP traces its origins to the Companies Act of 1956, which led to the creation of the Board of Company Law Administration (BCLA) in 1963. Over time, regulatory reforms transformed it into the Corporate Law Authority (CLA) in 1984. In 1997, under the Asian Development Bank’s Capital Market Development Plan, the CLA was restructured into the SECP, gaining autonomy under the Securities and Exchange Commission of Pakistan Act, 1997. The SECP became fully operational on January 1, 1999, expanding its oversight to include insurance, non-banking financial companies (NBFCs), and capital markets.

Legal Authority and Regulatory Framework

The SECP derives its authority from multiple legislative instruments, including:

• Securities and Exchange Commission of Pakistan Act, 1997 – Establishes its regulatory mandate.
• Securities Act, 2015 – Governs capital markets and securities brokers.
• Companies Ordinance, 1984 – Regulates corporate governance.
• Futures Exchanges (Licensing and Operations) Regulations, 2017 – Oversees derivatives trading.
• AML/CFT Regulations, 2018 – Enforces anti-money laundering and counter-terrorist financing measures.

Key Responsibilities and Regulatory Scope

The SECP’s regulatory functions encompass:

• Capital Markets: Licensing and supervising securities brokers, stock exchanges, and investment advisors under the Securities Act, 2015.
• Corporate Sector: Registering companies, ensuring compliance with corporate laws, and maintaining corporate governance standards.
• Non-Banking Financial Institutions (NBFIs): Regulating leasing companies, housing finance, venture capital, and asset management firms.
• Insurance Sector: Overseeing insurance companies to protect policyholders.
• Forex & Digital Assets: Monitoring forex brokers and digital asset trading platforms under evolving regulatory frameworks.
• Investor Protection: Enforcing AML/CFT measures, KYC protocols, and investigating financial fraud.

Contact Information

The SECP can be reached through the following channels:

• Headquarters: NIC Building, Jinnah Avenue, Islamabad, Pakistan.
• Phone: UAN: +92 51 111 117 327 (Helpdesk for eServices).
• Email: [email protected] (for eServices support).
• Website: https://www.secp.gov.pk (for forms, regulations, and updates).

How to Verify a Regulated Entity

To confirm if a financial service provider (e.g., forex broker, securities firm) is licensed by the SECP:

1. Visit the SECP’s official website (https://www.secp.gov.pk).
2. Navigate to the Licensing section under relevant divisions (e.g., Capital Markets, NBFCs).
3. Search the entity’s name in the registered/licensed entities database.
4. Cross-check using the SECP’s eServices portal or contact the Licensing Division for verification.