· exchange commission of Pakistan Act, 1997. Regulations

· Securities Market Division.

· Specialized Companies Division.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

· Finance and Admin Division.

· Human Resource and Training
Division.

· Insurance Division.

Each of division is separated into
Departments and Wings for effectual supervision. The Departments are headed by
Executive Directors, with oversight by commissioners. The ongoing challenges of
the Commission contain: based on the regulatory values develop a contemporary
and well-organized corporate sector and money market; based on global legal principles.
In order to promote principles of good governance in the corporate sector and defend
investors through responsive strategy measure and enforcement practice extend
an proficient and energetic authoritarian body. The SECP is governed by the
Securities and Exchange Commission of Pakistan Act, 1997 which encompasses the
constitution of the Commission engagement and terms and conditions of the
Chairman and Commissioners, functions and powers of the Commission and monetary
provision. The Securities and Exchange Commission of Pakistan is administering a
lot of laws. These consists of: insurance Ordinance, 2000 (previously as
Insurance Act, 1938; The Securities and Exchange Commission of Pakistan
Act,1997; The company ordinance, 1984 (amended and implemented in 2002); The Modaraba
Companies and Modaraba Ordinance, 1980; The Securities and Exchange Ordinance,
1969. The Policy Board is recognized by the Securities and Exchange Commission
of Pakistan Act, 1997 in order to supply supervision to the Commission in every
matter connecting to the functions of the Commission and formulation of the
policies. The Policy Board consists of utmost nine members chosen by the
Federal Government. Out of nine members five members would be as ex-officio
members and five members would be from non goverment sector. A number of important
amendments in corporate laws were completed with the purpose of updating these
laws to maintain swiftness with developments in the corporate sector. These
include: amendments in Securities and Exchange Ordinance, 1969; Modaraba
Companies and Modaraba (floatation and control) Ordinance, 1980; Companies
Ordinance, 1984; the securities and exchange commission of Pakistan Act, 1997.

Regulations of the
Corporate Governance

Many new pecuniary instruments are introduced by
the SECP so as to improve corporate governance. The regulations of corporate
governance was issued in March 2002 by the Security and Exchange Commission of
Pakistan with the aim of advance lucidity, governance and defend the notice of
the investors by civilizing the revelation in monetary coverage of companies.
The regulations of Corporate Governance are the consequences of the combined endeavor
of Securities and Exchange Commission of Pakistan and Chartered of Pakistan in partnership
with Institute of Cost and Management Accountants of Pakistan (ICMAP) and three
Stock Exchanges. The regulations includes loads of recommendations in a row
with global good practice. All listed companies issue and flow an announcement
along with their annual reports to set out the position of their observance
with the most excellent practices of corporate governance. The regulations first
and foremost aims to set up a scheme whereby a company is directed and controlled
by its directors in fulfillment with the superlative practice so as to defend
the attention of diversified stakeholders. It proposes to streamline the opus
of the board of directors in order to bring in broad based image by minority
shareholders and by executive and nonexecutive directors. The regulations emphasized
honesty and precision in corporate dealings and the verdict making process and
requires directors to set free their fiduciary home duties in the larger attention
of all stakeholders in a translucent, well-versed,