Securities and Exchange Rules, 1971
The Security and Exchange Rules, 1971 were made by the Securities and Exchange Commission of Pakistan in exercise of the powers conferred by section 33 of the Securities and Exchange Ordinance, 1969 (XVII of 1969), read with the Ministry of Finance Notification No. S.R.O. 261(I)/70, dated the 26th October, 1970. The rule 3 prescribes the condition required for membership of the stock exchange. The Rules provides duties and liabilities of such members and stock exchange. Every member shall prepare once every year a balance sheet and a statement of income and expenditure. A member shall have his accounts audited by an auditor who is a chartered accountant to be appointed by the Authority (SECP) whenever such audit is required by it in the public interest. The auditor shall furnish his report to the Authority within such time as the Authority may specify. Every stock exchange shall prepare and maintain, as required by sub-section (1) of section 6, such books of account and other documents as will accurately disclose a true and fair picture of the state of affairs of the exchange at any point of time.
The Security and Exchange Commission (Insurance) Rules were made by the Securities and Exchange Commission of Pakistan with the approval of the Board in exercise of the powers conferred by sub-section (2) of section 167 of the Insurance Ordinance, 2000 (XXXIX of 2000). These rules provide procedure for registration as an insurer. An application for this purpose shall contain the information as provided in Rule. Certain documents as mentioned in the rules shall be submitted with such an application. Once registered, the insurer shall apply for renewal of such registration on annual basis. The rules also describe the rights, liabilities and duties of insurers. Under the rules loans may be secured by the employees and agents of that insurer from the aforesaid insurer. Overall 39 rules are provided in these Rules.
The Ordinance was promulgated to provide for the protection of investors,[ regulations of capital markets and issue] and dealings in securities and for matters ancillary thereto.
