SECP set for major reforms

April 1, 2026 (MLN): Prime Minister Muhammad Shehbaz Sharif has constituted a high-level committee, led by Federal Minister for Law and Justice Azam Nazeer Tarar, to propose regulatory reforms aimed at enhancing the effectiveness and robustness of the Securities and Exchange Commission of Pakistan (SECP).

The committee held its inaugural meeting under the chairmanship of Law Minister Azam Nazeer Tarar, focusing on measures to expedite pending cases, improve recovery of penalties, and protect investor interests.

Key members include Federal Secretary Cabinet Kamran Yousaf, Secretary Finance Imdadullah Bosal, Secretary Law and Justice Raja Naeem, SECP Chairman Dr. Kabir Sidhu, and Competition Commission Chairman Fareed Ahmed Tarar.

SECP Chairman Dr. Kabir Sidhu highlighted that over 2,000 SECP-related cases are pending in courts, delaying enforcement of commission orders and limiting penalty recoveries.

He proposed empowering SECP’s enforcement framework and establishing special tribunals to ensure swift resolution. He also suggested shifting to civil proceedings for capital market violations, following international practices, particularly the UK model.

Federal Law Minister Azam Nazeer Tarar stressed that institutional reforms must accompany regulatory changes to ensure effective law implementation.

He directed SECP to fully digitize its regulatory system to prevent fraud in company filings and reduce the burden on courts.

SECP also briefed the committee on initiatives like electronic share transfers through the Central Depository System, aimed at enhancing transparency and reducing paper-based fraud.

The committee agreed that SECP’s enforcement powers should be strengthened through legal amendments and the decriminalization of certain offenses, enabling the commission to impose civil penalties more effectively.

The Law Minister instructed SECP to present a detailed reform plan in the next meeting, including proposals for tribunals, recovery mechanisms, and measures to enhance institutional performance.

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