SECP releases annual report for FY20

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued its annual report for the financial year 2019-20, detailing measures that the organisation took to promote capital formation in the capital market, improve access to finance for SMEs, expand financial inclusion, provide ease of doing business and leverage technological advances to bring efficiency and transparency in its working. 

SECP Chairman Aamir Khan stated that during the period under review, SECP’s overriding focus remained on three specific areas, including the creation of an enabling regulatory environment for the business community, attracting investment and spurring economic growth by simplifying the regulatory regime, in addition to expanding market outreach and leveraging technology to bring about efficiency as well as balancing effective enforcement with an efficient regulatory environment. 

Some noteworthy regulatory reforms implemented include simplification of IPO regulations, establishment of Growth Enterprise Market (GEM) at PSX, introducing corporate governance regime based on comply or explain approach, simplification of further issue of capital regulations, the introduction of categorisation of brokers, revamping of margin finance product and introduction of simplified ‘Sahulat Account’ for low-risk investors.

Further, the SECP launched a digital Secured Transaction Registry (STR) to facilitate small businesses and farmers to access bank finance without having to mortgage their homes or land.

Over 85,000 charges have been registered since April 2020, placing Pakistan in one of the 60 countries in the world that have such a registry, backed by the necessary legal framework.

Moreover, priority areas for the next financial year include institutional strengthening through function-based restructuring in a phased manner, replacement of existing e-services with a modern business registry, development of alternate distribution channels, provide farmers the opportunity to sell their produce by way of electronic warehouse receipts on a recognised exchange and encourage growth companies and SMEs to raise capital through the capital markets.