SECP introduces new rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced ‘Underwriters Rules, 2015’ and ‘Balloters and Transfer Agents Rules, 2015’, a statement said on Tuesday.
This is a major step to raise investors’ and shareholders confidence and ensure their interest is safeguarded, it said.
In the developed and emerging markets, regulatory framework for regulating the affairs of the underwriters, the balloters and transfer agents are considered imperative.
The key areas covered in these rules are the eligibility requirements; licensing; duties, responsibilities and functions of the underwriters, balloters and transfer agents; maintenance of the books of accounts and records; appointment of compliance officer in case of balloters and transfer agents, and enforcement actions like restriction, suspension or cancellation of licence in case of violation, the statement said.
The role of the underwriters is vital in the stock market trading, as they ensure raising the requisite funds to the issuer for their projects and also conduct due diligence to provide comfort to the prospective investors for making investment decisions.
The functions of the balloters and transfer agents are also of important nature, as they, on behalf of the issuers, are responsible for keeping and properly maintaining the share register and involved in the issuance and transfer of securities, it said.
Furthermore, they also facilitate the listed companies in redressing the shareholders’ complaints and grievances.
Consequently, after promulgation of the Underwriter Rules 2015 and the Balloters and Transfer Agent Rules, 2015 the Ballotters, Transfer Agents and Underwriters Rules, 2001 dated June 27, 2001 have been rescinded.
Both the new sets of rules are available on the Securities and Exchange Commission of Pakistan website, it added.