The Securities and Exchange Commission of Pakistan (SECP) has broadened the authority of its Supervision Division through a fresh delegation of powers, enabling its officers to take a more active role in monitoring financial markets, listed companies, brokers, insurers, and non-banking financial institutions. The move is aimed at improving regulatory efficiency, strengthening compliance, and safeguarding investor interests.
Issued through S.R.O. 874(I)/2026, the notification delegates statutory powers under multiple laws administered by the SECP, allowing designated officials to conduct inspections, launch investigations, request information, and enforce compliance across different segments of Pakistan’s financial sector.
Greater Focus on Unusual Stock Market Activity
Among the most notable changes is the authority granted to the Head of the Brokers, CMII & Market Surveillance Department to seek explanations from listed companies whenever there is an unusual rise or fall in the price or trading volume of their securities.
This power is intended to help the regulator identify the factors behind unexpected market movements, detect potential irregularities, and ensure that investors receive accurate and timely information. Companies may also be required to produce records and identify individuals who had access to price-sensitive information before significant market activity occurred.
Expanded Oversight of Financial Institutions
The new delegation also strengthens SECP’s supervision of non-banking finance companies (NBFCs). Officials overseeing the sector can now demand information from NBFCs, carry out inspections, and investigate their operations whenever necessary.
The Divisional Head of the Supervision Division has also been authorized to appoint auditors for special examinations of NBFCs, allowing the regulator to assess financial practices and governance standards more effectively.
Stronger Investigation and Inspection Powers
Department heads responsible for supervising listed companies, brokers, market intermediaries, insurers, and NBFCs have been given wider inspection powers to verify compliance with applicable laws and regulations.
In addition, the Divisional Head may appoint investigators to examine suspected violations, while investigating officers have the authority to summon individuals, obtain documents, and collect evidence during regulatory inquiries.
Tighter Monitoring of Capital Market Participants
The notification also enhances oversight of Pakistan’s capital markets by enabling SECP officials to obtain information from securities exchanges regarding Trading Right Entitlement (TRE) certificate holders and their clients.
The same powers extend to futures market participants, helping the regulator monitor trading activity more closely and respond quickly to any signs of market misconduct.
Wider Authority in the Insurance Sector
Insurance supervision has also been strengthened under the revised framework. SECP officials can now direct insurers on reinsurance arrangements, order special audits, initiate actuarial investigations, and appoint inspectors where necessary.
These powers are expected to improve financial discipline within the insurance industry while ensuring that companies continue to meet regulatory and solvency requirements.
Corporate Governance and AML Compliance
The revised delegation empowers supervisory officials to convene statutory meetings, inspect company records, issue notices to directors and senior executives, and initiate investigations into corporate affairs when circumstances require regulatory intervention.
The notification also reinforces SECP’s role in combating financial crime. Officials responsible for supervising brokers, insurers, and NBFCs have been entrusted with monitoring compliance with targeted financial sanctions under Pakistan’s anti-money laundering framework. Oversight of self-regulatory bodies representing the accounting profession has also been assigned to the relevant supervisory department.
Ensuring Continuity in Regulation
The notification partially replaces two earlier delegations of authority while confirming that all previous investigations, approvals, enforcement actions, penalties, and ongoing proceedings remain legally effective. Cases initiated under the earlier framework will continue under the newly authorized officials, ensuring uninterrupted regulatory oversight.
The notification further establishes a clear succession mechanism. If the Head of a Department is unavailable, the delegated authority will automatically transfer to the Divisional Head of the Supervision Division, and subsequently to the Commissioner if required.
Building Stronger Financial Markets
The expanded delegation of powers reflects SECP’s ongoing efforts to modernize regulatory supervision and strengthen governance across Pakistan’s financial system. By equipping its supervisory teams with broader investigative and enforcement authority, the regulator aims to improve transparency, discourage market abuse, enhance corporate accountability, and reinforce investor confidence in the country’s capital markets.