ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Zafarul Haq Hijazi on Saturday presented the draft Companies Bill 2015 to Finance Minister Ishaq Dar.

The bill envisages replacing the existing Companies Ordinance 1984, and would facilitate the corporate sector.

He said it aims to strengthen the regulatory regime, especially for companies having public interest, and would streamline the procedure for issuance of new shares to ensure that adequate consideration is received against the issuance of shares and first right of allotment is given to existing shareholders.

The Bill also envisages maximum use of technology by the regulator and regulatees, including attending meetings through video-conferencing.

The bill aims to strengthen the legal framework for NGOs/NPOs licenced by the SECP and to provide a mechanism for resolution of disputes through mediation.

The finance minister directed the SECP to ascertain and incorporate views of all stakeholders in the draft bill before it is placed before the parliament.

He desired that the draft bill should be posted on the website of SECP forthwith for public sharing. Besides, detailed consultative process through seminars, roundtables with the stake-holders should also be initiated, he remarked.

The National Assembly and the Senate recently approved the amendment in the existing law, the Companies Ordinance 1984. The amendment (95-A) relates to shares buy-back also called the ‘Treasure Shares.’ These amendments were presented to the finance ministry for approval in 2009 by the SECP.

The draft, after being approved by the finance ministry, would be presented to the National Assembly by the finance minister, which will be forwarded to relevant standing committee for a thorough discussion.

Earlier, Zafar Hijazi briefed the minister on integration of stock exchanges.

He said the SECP would facilitate completion of the integration process in a smooth manner which involves balancing the needs of all stakeholders.

The process, he added, was expected to be completed next month to ensure operationalization of the integrated Pakistan Stock Exchange on Jan 1.

Published in Dawn, November 29th, 2015