SECP Empowers Its Compliance and Corporatization Officers With More Responsibilities

The SECP or Securities and Exchange Commission of Pakistan yesterday, in an announcement, gave more powers and responsibilities to its commissioners and officers from the Compliance and Corporatization Department.

The new powers were delegated as part of the SRO 1092(I)/2016 related to the ‘Powers And Functions The Commision Delegated To Commisioner, Corporatization And Compliance Department (CCD).’

The powers delegated to these officers are:

• To grant, renew or revoke license and impose terms and conditions in respect thereof and to grant any approval required pursuant to the said terms and conditions including prior approval regarding investment in associated company.
• To appoint administrator to manage the affairs of a company licensed under Section 42 of the Ordinance.
• To sanction issues of shares at discount on such terms and conditions at think fit and to allow extension in time to issue shares at discount.
• To impose penalty for violation of provisions of Section 82.
• To allow a company to issue further share capital to any person for cash or for a consideration other than cash.
• To make a disqualification order against a person to hold office of director of a public interest company.
• To grant leave to any person to act on the instruction given by a person who is subject of disqualification order under Section 172.
• To impose penalty for contravening the provisions of sub-section of Section 184.
• To grant exemption to a company or class of companies as specified, in complying with the requirement of Section 216.
• To require companies generally or any class of companies or any particular company, by general or special order, to prepare and send to the members, the commission, the registrar, the securities exchange and any other person such periodical statements of accounts, information or other reports, in such forms and manner and within such time, as may be specified in the order.
• To impose fine for default in complying with the order of the commission issued under sub-section (1) of Section 238.
• To receive and forward the claim to the bank for payment to entitled person of the sum equivalent to his unclaimed or unpaid dividend or amount of proceeds etc.
• To grant permission to the inspector or investigation officer to enter and search etc. any place where required documents/record etc. of a company are kept.

It is hoped that SECP delegating more responsibilities to its officers will help it do a better job in regulating companies and in solving their issues in Pakistan.

Via Pk Revenue