SECP outlines broad reform agenda as Aurangzeb reviews investment, capital market initiatives

The Securities and Exchange Commission of Pakistan (SECP) on Wednesday presented a broad update on regulatory reforms covering capital markets, corporate governance, insurance and digital services during a meeting with Finance Minister Muhammad Aurangzeb, as the government seeks to improve investor confidence and the ease of doing business.

Chairman Dr Kabir Ahmed Sidhu briefed the minister on developments across the corporate, capital market and non-banking financial sectors, with discussions centring on measures to attract investment and support sustainable growth.

Among the key capital market initiatives, the SECP said longstanding issues involving the Chinese consortium at the Pakistan Stock Exchange (PSX) had been resolved, while conditional approval had been granted for the exchange's demerger of its real estate assets. The regulator also announced that the investment limit for Sahulat Accounts has been tripled from Rs1 million to Rs3 million, the Capital Market Development Fund has been formally launched, and 10 initial public offerings (IPOs) have been approved since January 2026. A mobile application designed to simplify gold trading is also under development.

The briefing also highlighted progress in modernising corporate regulation. Since January, the SECP has registered 18,057 companies, completed a record 109,878 post-incorporation filings and returns, and issued 149 new licences across different sectors.

To digitise regulatory services, the Commission has rolled out a Central Ultimate Beneficial Ownership (UBO) Registry portal for online ownership disclosures and is developing an artificial intelligence-powered company registration system. It has also approved the transition of unlisted company shares from physical certificates to book-entry form, while Business Facilitation Centres are planned for Islamabad, Lahore and Karachi.

Insurance sector reforms also featured prominently in the presentation. The SECP said compulsory third-party motor insurance is now operational in Sindh, increasing automatic compensation for accident victims from Rs20,000 to Rs700,000 without the need for court proceedings.

Commercial vehicle insurance has expanded significantly, with the number of active policies climbing by 1,300%, from 11,000 to more than 165,000. The regulator said it is preparing to extend the third-party insurance framework to Punjab, Khyber Pakhtunkhwa and Balochistan.

The Commission further informed the minister that new annuity products have been introduced for retirees, a consortium of insurers has been established to provide crop insurance, and the takaful industry's market share has risen to 14%, supported by newly issued regulatory guidelines.

Aurangzeb also commended the SECP's action against State-Owned Enterprises (SOEs), particularly its decision to issue notices aimed at strengthening regulatory compliance, according to the statement.