The Securities and Exchange Commission of Pakistan (SECP)'s new reform initiatives, fee reductions, simplification of laws, corporate rehabilitation and e-services have improved the ease of doing business environment for new and existing companies, which has made the commission the most vibrant regulator in the country.
Market experts, while critically analysing the SECP's recent reform initiatives, appreciated the facilitation measures resulting in the "ease of doing business" for the corporate sector.
Talking to Business Recorder here on Friday, Aftab Ahmad, a market expert and former managing director of the Lahore and Islamabad Stock Exchanges, stated that the SECP was making strenuous efforts to improve the "ease of doing business" environment in the country.
For instance, measures such as speedy company registration in "four working hours" through eServices and simplified incorporation procedures are in line with the "ease of starting a business" indicators.
These reforms have led to further reduction in the number of procedures, time required to start a company, and cost of starting a business.
He stated that the SECP being a lead agency for business registration was cognizant of the importance of "ease of doing business" and would continue the reform measures, which would lead to further robust corporate growth in the country, and formalization of the business sector and documentation of economy.
Ahmad recalled that the SECP had been engaged in regular interaction with the Board of Investment (BoI) for introducing reforms to make doing business easier for companies.
About the current market conditions and the functioning of the regulatory bodies in Pakistan, Ahmad stated that only the SECP seemed to have worked with a purposeful sense of direction to lay the foundation for a modernistic atmosphere for the growth of corporate and market sectors in the country.
He cited the introduction of the Sandbox Guidelines as an example to show how the commission was making efforts to encourage growth of startup companies in the country.
Furthermore, the introduction of regulations for new brokers regime, Exchange Traded Funds (ETFs) market and reduction of regulatory fee for many market institutions, were just few other landmark initiatives having been introduced by the commission.
Market expert said that from the stand point of a market participant and a consumer, the performance of the SECP had been better than many other sector regulators such as the NEPRA, the OGRA, and the PTA etc.
Ahmad also stated that the government also seemed to lay emphasis on the smooth functioning of the commission as seen from the appointment of Saadia Khan as a new commissioner of the SECP.
He said that it was after years that the commission would have its complete strength of five commissioners.
He pointed out that the SECP had revamped the regulatory framework for the mutual funds industry with an aim to meet the changing industry dynamics, implementing international best practices, safeguarding investors' and providing ease of doing business.
In order to promote ease of doing business, the commission has made amendments from time to time in the NBFC Regulations 2008 to provide for operational flexibility to Asset Management Companies (AMCs).
Further, to reduce the operational burden on the AMCs, the commission has also removed various requirements of regulatory approvals for mutual funds. The said measures have been introduced to facilitate the growth of the mutual funds industry and to provide a more facilitative and robust environment for the sector, Ahmad maintained.
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