Abstract:
The growth of a nation's economy is significantly influenced by its
financial sector. While the banks dominate Pakistan's financial sector,
there is less focus on the area that non-banking finance sector and
businesses hold. India's financial sector is a combination of the
banking and non-banking sectors. Businesses that deal in loans and
advances, in addition to the acquisition of shares, stocks, bonds,
debentures, and other marketable securities issued by national and
local bodies, continue to be largely disregarded, and the regulatory
framework of Pakistan still has considerable gaps in it.
Asset management companies, investment and securities advisors,
insurance companies, investment banks, securities brokerage firms,
venture capitalists, currency exchanges, some micro loan organizations,
and even pawn shops are examples of non-banking financial
institutions. Even though many of the services that these organizations
offer aren't strictly appropriate for the banks, they nonetheless compete
with the banks in some way, making them the underdogs of the
banking lobby-dominated financial services sector.
The Securities and Exchange Commission of Pakistan (SECP).has the
challenging task of overseeing the Pakistan's corporate sector and
transforming it into a modern and effective capital market. There are
still some noticeable gaps in the country's regulatory architecture when
compared to India, particularly when it comes to enforcement
measures, even though the supervisory body has specified a sizable
number of laws and guidelines that administer the sector.
