SECP Establishes Dedicated Facilitation Desk for Section 42 Licensing Applications

In line with its commitment to regulatory facilitation, ease of doing business, and market development, the Securities and Exchange Commission of Pakistan (SECP) has announced the establishment of a dedicated Licensing Facilitation Desk at its Head Office. This initiative aims to assist applicants seeking licenses under Section 42 of the Companies Act, 2017, by providing hands-on guidance, analyzing applications for completeness on the spot, and minimizing unnecessary delays in the licensing process. To further streamline the application process, the SECP has also introduced a standardized email address, which will serve as a single point of contact for all applications and related correspondence pertaining to Section 42 company licenses. This centralized communication channel is designed to enhance efficiency and ensure timely responses to stakeholder inquiries. The SECP has mandated that medium and large-sized Section 42 companies must have at least one female director on their Board. This requirement will take effect from the next election of directors following the promulgation of the Companies Regulations, 2024. Small-sized Section 42 companies are also encouraged to adopt this practice to foster gender diversity and inclusive governance. To assist applicants in preparing their submissions, the SECP has made comprehensive resources available on its website. These include a detailed checklist of required documents and a Guide on Licensing of Association with Charitable and Not-for-Profit Object Companies under Section 42. These measures are part of SECP’s broader efforts to streamline regulatory processes, enhance transparency, and ensure efficient handling of licensing matters. The Commission remains dedicated to modernizing regulatory frameworks, promoting transparency, and facilitating the establishment of not-for-profit associations under Section 42 of the Companies Act, 2017. The SECP is committed to fostering a well-regulated, transparent, and investor-friendly corporate sector. These initiatives underscore its ongoing mission to improve ease of doing business and strengthen regulatory efficiency.