SECP moves to reinforce investor protection in real estate projects

October 6, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) held a high-level consultation session with the Association of Builders and Developers of Pakistan (ABAD) to deliberate on a comprehensive regulatory framework for real estate companies seeking to raise advance deposits from the public for their projects.

Led by SECP Commissioner Mr. Muzzafar Ahmed Mirza, the meeting was attended by ABAD Chairman Muhammad Hassan Bakshi and his team, including prominent industry experts.

The session focused on the development of a robust and transparent regulatory structure to enhance investor protection, improve accountability, and promote sustainable growth in Pakistan’s real estate sector.

Under the Companies Act, 2017, real estate companies intending to collect public advances must obtain a No-Objection Certificate (NOC) from SECP prior to launching or advertising their projects.

Moreover, all such public funds are to be maintained in escrow accounts to ensure proper utilization and safeguard investor interests.

However, implementation of this framework has remained in abeyance, prompting renewed discussions between the regulator and industry stakeholders.

During the session, participants exchanged views on practical challenges, sectoral gaps, and the need for regulatory clarity to create a fair and transparent investment environment.

SECP officials reiterated their commitment to reinforcing investor confidence, enhancing transparency through trustee mechanisms, and ensuring effective regulatory oversight across the real estate industry.

This collaborative consultation marks a significant step toward operationalizing a balanced regulatory regime that not only mitigates risks but also supports long-term sectoral growth and public trust in real estate investments.

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