Comparison of the SECP Bill 2011 with the SECP Act 1997

In October 2011, Dr. Abdul Hafeez Shaikh, the Federal Minister for Finance presented the Securities and Exchange Commission of Pakistan (Regulation and Enforcement) Act, 2011. The “Statement of Object & Reasons” accompanying the Bill reads as “… the evolution of the SECP Act, 1997 has not kept pace with the requirements of the regulatory framework. Resultantly, SECP drafted the proposed Bill which will provide for enhancing the powers, functions and duties of SECP. The proposed Bill intends to regulate and facilitate the capital and financial services market, supervise and control corporate entities”.

This comparison of the proposed provisions of the SECP Bill 2011 with the SECP Act 1997 has been prepared with the objective of highlighting some of the additional powers that the SECP is seeking through this legislation as well as the significant amendments which have been proposed in the existing Act. The underlying purpose of circulating this comparison is to build broad consensus on this important piece of legislation. The Pakistan Business Council (PBC) supports strong and independent regulators with enabling legislation as a prerequisite for a competitive business environment. The PBC however would like each regulator’s domain to be clearly defined and where amendments are proposed in existing legislation to have these debated prior to enactment for better clarity and ease of implementation.