Abstract:
Securities and Exchange Commission of Pakistan has been
established under the Securities and Exchange Commission of
Pakistan Act, 1997 . Establishment of the Securities and
Exchange Commission of Pakistan since 1st January 1999 is
an important milestone in the evolution of the Regulatory
Framework for the Capital Market in Pakistan. The rapid
expansion of the market during early 1990s highlighted the
need for establishment of an independent regulatory body
with full operational and administrative autonomy. The
Securities and Exchange Commission of Pakistan is a
governing body. It looks after working of all the companies
registered under companies ' ordinance 1984 .Many of these
companies float their shares in the stock market . . The
commission has taken many steps and reforms in order to
improve the working of the Stock Market, but at the same
time there are numerous problems faced by the Stock Market.
These problems are related directly with the Stock Market.
The governance of the Stock Market is one of the major
problems faced by the commission. The study is qualitative
and descriptive in nature. Results are based on secondary
data.
• SEC has implemented a reform Programme that was
necessitated by the Stock Market crisis of May 2000,
improvement in Stock Exchange Governance , 40%. director
on Stock Exchange boards to be nominated by SECP in
consultation with the Stock Exchanges. Prohibition on
"Blank Selling" T+3 System at the three Exchanges,
Brokers, Agents Registration Rules , Establishment of
III
Futures Contracts Market, implementation of Code of
Corporate Governance etc .
The quality of corporate governance has substantially
improved and the general public is satisfied that the
Commission provides protection for their interests.
Following steps were recommended, the commission should
emphasize on public awareness , induction of specialist in
the sector, demutualization, monitoring of the members , and
the commission should facilitate a more vibrant primary
market with strong under writing and distributive capacity .
