ISLAMABAD, June 12: Securities and Exchange Commission of Pakistan (SECP), as a policy, encourages the listing only of such companies that have a proved track record and are in a position to pay returns to shareholders through dividend or capital appreciation.

This was stated by the SECP Chairman, Mr Abdul Rehman Qureshi, while delivering inaugural address to a Workshop on “Significant Issues of Corporate Governance” here on Thursday.

Organized by the SECP under the SECP-UNDP Project on Corporate Governance for senior management of listed companies, the workshop was attended by over 40 executives from all over the country.

Mr Qureshi noted that more and more companies were now realising the value of corporate governance and some companies had voluntarily offered themselves for corporate governance rating. This reflected the commitment of the management to set up standards for itself.

“I have learned that manufacturing companies too have approached the rating agencies for their rating,” he said, adding that such corporate governance rating is like ISO certification which reflected on the procedures, methods and the discipline followed by a company.

The code of corporate governance enforced by the SECP through listing regulations aimed at enhancing the efficiency of corporate sector through effective management and internal control practices.

The SECP chairman referred to a “wrong” impression that this code was a kind of over-regulation and a discouraging factor for new listings. “To the contrary, I strongly feel that to be a listed company is a symbol of prestige and it entails greater corporate responsibility,” he asserted.

Referring to the complaints by some companies about the cost and labour involved in the printing and circulation of quarterly accounts among the shareholders, he said the SECP, in order to redress their concern, had already directed all the listed companies to set up their websites.

It was also contemplating to do away with the requirement of printing and dispatch of such reports by the listed companies. This would reduce the cost and also ensure timely dissemination of information among the shareholders and regulatory authorities, he added.