Investors, startups: PTBA urges SECP to update guidelines, remove procedural snags

KARACHI: The Pakistan Tax Bar Association (PTBA) has requested the Securities and Exchange Commission of Pakistan (SECP) to regularly update its guidelines and remove procedural difficulties to facilitate all business segments.

In a letter to the SECP chairman, the PTBA said its members dealing with SECP offices nationwide were facing challenges, creating hardships for startups and investors coming to Pakistan. The letter stated that the issues go beyond timelines, penalties and technical problems on the SECP portal.

“There are now numerous things really hindering corporate growth and frustrating new investors and ventures,” the letter read.

It said time-bound digital certified copies were cumbersome for investors. Coupled with the hefty fee for physical copies, it caused difficulties for investors and shareholders. The PTBA requested rationalizing these charges by including certified copy fees in company registration costs.

Since most filings and registrations occur online, the SECP portal’s constant availability is critical. However, the portal often becomes unavailable lately, significantly delaying compliances and filings, the letter highlighted.

Furthermore, the SECP should regularly update its guidelines to inform all businesses of restrictions that may limit their initial flexibility and working directions.

While enforcing harsher penalties for non-compliance is good, it may deter greater corporatization in Pakistan if businesses view the SECP as unwelcoming, the PTBA cautioned.

Decentralizing the corporate winding-up process was also suggested. Despite easy exit/winding up applications being submittable at any SECP office, processing occurs in Lahore with long turnaround times, causing applicants to anxiously follow up repeatedly.

In conclusion, the PTBA requested the SECP chairman taken necessary steps to encourage corporatization in Pakistan by being a progressive regulator attentive to local and foreign investors’ and startups’ needs.

Copyright Business Recorder, 2024