For business information, annual reports, laws, ordinances, regulations and articles.

	Web Paksearch.com

8. Other Developments

8.1 The ADB Capital Market Development Program
The Commission successfully implemented the Capital Market Development Program (CMDP), prepared jointly by the GOP and the ADB in 1997. The program had seven components relating to different aspects of capital market development. These were: creation of a policy environment to enhance competition and a level playing field; strengthening of securities market governance, institutions, regulations and supervision; improvement and modernization of securities market infrastructure and its integration; development of a corporate debt market; reform of the mutual funds sector; development of leasing companies; and promotion of contractual savings through reforms in the insurance sector and pension and provident funds. Under the umbrella of CMDP, significant developments have taken place in the capital market, the most notable of which is the establishment of the Commission with full operational autonomy. Other important developments were: complete automation of the trading system at the stock exchanges, operationalization of the central depository and restructuring of the management and boards of the three stock exchanges. Details of these developments and other measures taken under CMDP are mentioned in the respective chapters of this report.

8.2 Vigilance Cell
In June 2000, a Vigilance Cell was set up to keep track of the complaints, petitions and appeals received by the Commission and facilitate their expeditious disposal. This Cell, which reports directly to the Chairman's office, maintains a database of all investor/shareholder complaints, petitions lodged under Section 21 of the Companies Ordinance, 1984, appeals to be heard by Appellate Benches of the Commission and court cases. The Cell coordinates with the Divisions and Appellate Benches on a regular basis and endeavors to ensure that these matters are resolved in a timely and judicious manner. In the event of delay in resolving a case, the Cell is entrusted with the responsibility of suggesting remedial measures or bringing the matter to the attention of the Commission for resolution. The Vigilance Cell generates weekly and monthly reports that highlight the status of complaints, petitions and appeals. Attention is drawn to any issue arising in this connection and appropriate action recommended by way of resolution.

A secondary objective of the Cell is to broadly assess signals based on the nature of complaints and related cases being received to enable the Commission to take preventive measures to pre-empt any potential problem or crisis.

With the establishment of the Vigilance Cell, disposal of complaints, petitions, appeals and court cases by the Commission has been greatly expedited. The systematic, centralized approach taken by the Cell as well as close coordination between the Cell and Divisions/Appellate Benches, has made it possible to follow the 'trail' of a receipt and oversee its status till its eventual resolution. It is pertinent to mention that the Commission has managed to resolve the highest number of investor complaints during the period under review.

With implementation of the Local Area Network (LAN) and Wide Area Network (WAN) systems, the operations of the Vigilance Cell and monitoring of complaints will be automated. The Divisions will be required to directly update the status of and progress regarding disposal of complaints on daily and weekly basis through the computerized network. Regular reports will be generated and more focused solutions to problem areas would become possible. Automation will also serve as an interface with the general public and facilitate the filing of complaints electronically.

Performance of the Vigilance Cell in terms of complaints, petitions, appeals and court cases dealt with during the year under review is given below:

Table 14 - Performance of Vigilance Cell (July 2000 - June 2001)

A detailed break-up of the complaints received and disposed of is as under:

Table 15 - Detail of Complaints

S. No.	Nature of Complaint	Brought forward	Received	Total	Disposed of	Pending
1	Issue of shares under Section 74 of the Companies Ordinance 1984	9	1	10	10	--
2	Issue of duplicate shares under Section 75 the Companies Ordinance 1984	5	35	40	40	--
3	Transfer of shares under Section 76 of the Companies Ordinance 1984	--	74	74	69	5
4	Verification of transfer deeds	4	29	33	33	--
5	Payment of dividend under Section 251 of Companies Ordinance 1984	12	161	173	170	3
6	Non-receipt of annual and half yearly accounts	--	29	29	28	1
7	Miscellaneous	12	266	278	267	11
8	Complaints against brokers	75	163	238	173	65
	Total	117	758	875	790	85

An exchange-wise break-up of complaints against stock brokers, received and disposed of, is given in the Table 16 below.

Table 16 - Detail of Complaints Against Brokers

S. No.	Stock Exchange	Brought forward	Received	Total	Disposed of	Pending
1	KSE	16	40	56	45	11
2	Petitions	41	80	121	81	40
3	ISE	18	43	61	47	14
	Total	75	163	238	173	65

8.3 Information Technology
A comprehensive plan has been developed and is currently being implemented for complete automation of the Commission. This plan includes a variety of projects that will facilitate interaction with the corporate sector as well as improve the operations of the Commission.

8.3.1 Capacity Enhancement of the Commission
The automation system that has been developed at the Commission will enable computerized registration of companies and monitoring of their activities. It would also provide a comprehensive database of all listed and non-listed companies. This would be completed by March 2002. Subsequently, the system will enable on-line access to the database and registration facilities, electronic submission of accounts and payment of fees to the companies and their authorized users. All this is under implementation and may be substantially completed by the end of June 2002.

A database of approximately 43,000 companies registered with the Commission has been created and placed on servers in Islamabad (the Commission's headquarter) to allow access to the seven CROs. Use of a LAN to enable access to the staff of the Commission is in its final stages of implementation and configuration. The WAN is already operational and is being improved with the provisioning of DXX facility in Islamabad and at the major CROs.

Surveillance of trading at the KSE through Wave-tech transmissions has been obtained. This will be extended to the ISE and the LSE and subsequently shifted to WAN connectivity upon completion of the LAN/WAN Project.

8.3.2 Customized Software Development
As part of the automation process, nine software application packages are being developed. These are:

a. Company Registration System (CRS)
b. Corporate Compliance Facilitation System (CCFS)
c. Complaints Monitoring System (CMS)
d. Specialized Companies System (SCS)
e. Beneficial Ownership System (BOS)
f. Market Surveillance System (MSS)
g. Enforcement and Monitoring System (EMS)
h. General Ledger System (GL)
i. Human Resource and Payroll System (HRS)

In addition to the above, an independent Disaster Recovery Facility is also being set up. The hardware required for the project has already been acquired.

While these packages are designed separately, they are all interlinked to fulfill the data needs of each Division and also to avoid duplication of work. Compliance with statutory requirements by the corporate sector will be effectively monitored once the software packages have been installed and non-compliance in individual cases will be minimized.

The preparation of all the required software application packages has been commissioned. These are in various stages of completion, testing and installation. Top priority is attached to the task and full automation of the Commission's functionalities within the timeframe contemplated.

8.3.3 The Website
The Commission's website, available at http://www.secp.gov.pk is continuously updated and efforts are underway to improve its appearance, layout and contents. The website has been developed to inform the public about the functions of the Commission. The website provides information on the securities market, annual and quarterly reports of the Commission, an update of key indicators and important corporate and securities market regulations, corporate laws and related rules and regulations. The website has also been equipped with a company name search facility, company registration guidelines and forms.

---

	Web Paksearch.com

Home | About Us | Contact | Information Resources