The SEC came into existence as Capital Market Regulator through promulgation of the Securities and Exchange Commission Act, 1993 with the responsibility of protecting the interest of the investors, issuance of capital and regulating the capital market for a fair and transparent market operation.
The Commission is composed of a chairman and four full time members. The Government appoints the Chairman and Members of the Commission.
The Securities and Exchange Commission is governed by the Securities and Exchange Commission Act, 1993, and has the following objectives in the main:
- Ensure proper issuance of securities,
- Protect interest of the investors in securities,
- Promote development and maintain fair capital market,
- Regulate the securities market,
- Ensure proper issuance and compliance of law.
The main functions of the Commission are as follows:
- To regulate issuance of capital and securities;
- To regulate the business of stock exchanges or any other securities market;
- To register and regulate the working of stock brokers and other intermediaries who may be associated with securities market in any manner;
- To register, regulate, and monitor the work of any form of collective investment scheme including all forms of mutual funds;
- To promote, monitor and regulate all authorized self-regulatory organizations in the securities market;
- To prohibit fraudulent and unfair trade practices relating to securities in any securities market;
- To promote investors education and training of all intermediaries of securities market;
- To prohibit inside trading in securities;
- To regulate substantial acquisition of share or stock and take-over of companies;
- Conducting research, and publishing periodical reports;
- To call for information from, undertake investigation and inspection, conduct inquiries and audit of any issuer or dealer of securities, the stock exchanges and intermediaries and any self-regulatory organization in the securities market;
To discharge the above duties, SEC make rules and regulations in exercise of the powers conferred by the Securities and Exchange Commission Act, 1993 and Securities and Exchange Ordinance, 1969.
Departments of SEC
smooth functioning, the Securities and Exchange Commission has the following
departments and offices: