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No proposal to bifurcate SECP, Registrar of Cos

ISLAMABAD: The government is not mulling any proposal to amend the existing set up of Securities and Exchange Commission of Pakistan (SECP) for the separation of the Registrar of Companies.

"No proposal is under consideration of the government to bifurcate the SECP and the Registrar of Companies," informed quarters told APP here on Saturday.

The department of Registrar of Companies was always a part of the SECP, earlier named as Corporate Law Authority after its takeover by the centre, the source pleaded.

The merger of Registrar of Comapnies Department took place in early 70s when it was taken over by the federal government and before that, this department was under the provincial governments, sources added.

Drafting amendments in the companies Ordinance, 1984, for the purpose of capital market reforms, the question of keeping the regulatory structure under the roof of SECP was discussed threadbare.

It was described as essential to retain the Registrar of Companies under the SECP umbrella and even the Asian Development Bank endorsed this view, sources maintained.

In case the companies' registration is separated from the SECP, it would be quite difficult for the SECP to seek information about a company from the Registrar without wastage of time, sources added.

Though the SECP can get documents from the companies, yet it would tantamount to inconvenience for them which would then have to arrange several sets of documents for onward presentation to the two organisations, sources said. APP