FINAL INTERNSHIP PORTFOLIO

REPORT

Submitted by: Saba Batool

Student ID:

Session: 21-08-2023 to 28-09-2023

Name of University: COMSATS University Islamabad

Dated: 06-10-2023

1
 DEDICATION

I would like to dedicate this internship report to my beloved parents and my supervisors
who have always supported and motivated me throughout my internship and encouraged
me at every step. I would finally like to take this opportunity to thank my siblings and
friends for their constant support and trust in me throughout this journey.

2
 ACKNOWLEDGEMENT
Firstly, I am incredibly grateful to Almighty Allah (s.w.t), without whom nothing would have
been possible. I am thankful for the strength, ability, knowledge, and capability which He has
blessed me to carry out this research.
Glory and praise to our Last Prophet Hazrat Muhammad (PBUH), the most perfect and exalted
among every borne on the surface of the earth, who is forever a symbol of direction and
knowledge for the whole humanity and whose teachings are a beam of light for us in the hours of
despair and darkness that give us new version for life
Next, I wish to express my gratitude to my parents. Without their commitment and
encouragement, the completion of my internship would have been a mere failure. Similarly, I
hereby acknowledge their prayers for my success, which have significantly helped me throughout
my internship.

I would like to show my sincerest gratitude to Mr. Asif Iqbal (Director/HOD, Policy Regulation
and Development Department, SMD), Ms. Sumaira Siddiqui (Additional Director, Policy,
Regulation and Development Department, SMD), and all the Executive directors (EDs) of PRDD,
who have been the leading source of guidance, knowledge, and inspiration for me. I am eternally
grateful for the time and energy you put into helping me complete my internship. The PRDD
department has equipped me with practical tools to study problems empirically and effectively,
analyze them and draw conclusions. With their sincere support, I was able to complete my 6 week
internship successfully.
Last but not least, I would like to thank my friends for their prayers, support, and patience.

3
 EXECUTIVE SUMMARY

This report presents a comprehensive outlook of my professional journey at the Securities and
Exchange Commission of Pakistan (SECP). At the time of internship, I was provided the
opportunity to get familiar with various aspects of financial regulation, compliance monitoring,
policy development, and research on regional stock exchange markets, which have significantly
enriched my understanding of the Capital Market.
The major focus of my internship was to understand and monitor financial regulation and
compliance. This involved studying existing financial regulations, and evaluating their
effectiveness such as The Companies Act 2017. It helped me in deeper understanding of the
regulatory landscape. This experience with regulatory compliance allowed me to witness the
practical implications of these regulations on market participants and understand the importance
of adherence to these rules for the smooth functioning of the capital market.
The research on regional stock exchange markets was another significant part of my key
responsibilities. It required analyzing different regional markets, understanding their operations,
and comparing them with the Pakistani market. This comparative study offered insights into
various market dynamics and operational strategies, enhancing my knowledge of the global
capital market.
Lastly, the administrative duties that came along with these tasks taught me the importance of
organization, coordination, and communication within a corporate setting. From managing
schedules to coordinating with various departments, these responsibilities helped me understand
the intricacies of corporate operations.
In conclusion, my internship at SECP has been an enriching experience, providing me with a
robust understanding of the Capital Market. The skills and knowledge acquired during this period
will undoubtedly guide my future career trajectory in the field of finance.

4
Table of Contents
BRIEF INTRODUCTION OF THE COMMISSION.................................................................................7
Organizational structure and Workforce of the Securities and Exchange Commission of
Pakistan (SECP).........................................................................................................................9

PLAN OF MY INTERNSHIP PROGRAM..................................................................................11

TRAINING PROGRAM..............................................................................................................12

MY TASKS..............................................................................................................................13

CRITICAL ANALYSIS.......................................................................................................................15

SWOT ANALYSIS............................................................................................................................17

CONCLUSION................................................................................................................................18

5
 BRIEF INTRODUCTION OF THE COMMISSION
The Securities and Exchange Commission of Pakistan (SECP) is a regulatory authority
established under the Securities and Exchange Commission of Pakistan Act, 1997. It officially
commenced operations on January 1, 1999, with a mission to develop a fair, efficient, and
transparent regulatory framework for the corporate sector and capital market. The commission is
vested with comprehensive investigative and enforcement powers to ensure adherence to the laws
and protect investor interests.
Following are the functions and responsibilities of SECP:
Functions
 Administration of Corporate Laws
 Registration and Regulation of Companies
 Regulating Issuance and Trading of Securities
 Enforcement and Compliance Actions
Responsibilities
 Revamping Regulatory Framework
 Protecting Interest of Investors
 Public Facilitation and Awareness
The SECP's mandate extends across multiple sectors. One of its core responsibilities is the
regulation of the corporate sector and capital market. It ensures that corporate entities comply
with the necessary regulations, promoting transparency and efficiency in the capital market.
Another crucial aspect of SECP's role involves the supervision and regulation of insurance
companies. This includes ensuring that these companies operate within the legal framework,
maintain the required financial health, and treat policyholders fairly.
The SECP also has the responsibility of supervising and regulating non-banking finance
companies and private pension schemes. This role aims at safeguarding the interests of investors,
depositors, and pension scheme members by ensuring the financial soundness of these institutions
and the adequacy of their conduct.
Additionally, the SECP oversees various external service providers to the corporate and financial
sectors. These include chartered accountants, credit rating agencies, corporate secretaries,
brokers, surveyors, etc. The SECP ensures that these service providers adhere to the highest
standards of professionalism and ethics in their conduct.
6
7
Organizational structure and Workforce of the Securities and Exchange Commission of Pakistan
(SECP)

8
The SECP boasts a dynamic and diverse workforce of more than 600 dedicated professionals
committed to ensuring the smooth functioning of Pakistan's financial markets. The organization's
head office, serving as the central hub for its operations, is strategically located in Islamabad.
SECP is organized into nine specialized divisions, each focusing on a distinct aspect of financial
market regulation and oversight. These divisions are:
1. Support Service Division
2. Prosecution and Legal Affairs Division
3. Licensing & Registration Division
4. Securities Market Division
5. Supervision Division
6. Specialized Companies Division
7. Adjudication Division
8. Insurance Division
9. Information Systems & Technology Division
Each division comprises several departments, working in unison to fulfill the responsibilities of
their respective divisions.
As an intern, I was privileged to work in the Securities Market Division (SMD), one of the
critical arms of SECP. The SMD is further divided into three departments:
1. Policy Regulation & Development Department
2. Primary Market Approvals Development Department
3. Commodities Regulation & Development Department

9
 PLAN OF MY INTERNSHIP PROGRAM
My internship program was situated at the Securities and Exchange Commission of Pakistan's
(SECP) head office in Islamabad. This location serves as the organization's main operational hub,
playing a strategic role in its functions.
The internship spanned from August 21, 2023, to September 28, 2023. During this time, I gained
invaluable insights and experience in the workings of SECP.
I was assigned to the Securities Market Division, one of SECP's nine divisions. More specifically,
I worked in the Policy Regulation & Development Department (PRDD) within this division. My
internship was divided into two parts: the first two weeks under the guidance of Ms. Sumaira
Siddique, Additional Director of PRDD-SMD, and the remaining four weeks under Mr. Zeeshan
Nawaz, Joint Director of PRDD-SMD.
Structure and Role of PRDD-SMD
The PRDD-SMD comprises three wings: the SROs Wing, the Commodity Exchange Wing, and
the Licensing Wing. This department carries significant responsibility for shaping the overall
policy and regulatory framework of capital markets, including Self-Regulatory Organizations
(SROs).

Wing Structure:

i) SROs Wing ii) Commodity iii) Licensing Wing

Exchange Wing

Through my 6-week internship, I had the opportunity to rotate through different wings
within the department, gaining a broad understanding of its operations and
responsibilities.

10
 TRAINING PROGRAM

PRDD-SMD is responsible for overall policy and regulatory framework of capital markets
including SROs:

 All policy matters relating to the securities market and the futures market:
The Policy Regulation & Development Department (PRDD) in the Securities
Market Division (SMD) is responsible for managing all policy matters associated
with the securities and futures markets. This includes drafting, revising, and
implementing policies that govern these markets. They ensure that these policies
align with the current economic conditions and are conducive to the growth and
stability of the financial sector.

 Approvals of amendments in SROs’ Licensing and Operations Regulations:

The PRDD-SMD also performs a regulatory function by approving any changes
to the Licensing and Operations Regulations of Self-Regulatory Organizations
(SROs). These amendments could vary from minor adjustments to significant
overhauls, all aiming to enhance the efficiency and transparency of SRO
operations in the securities market.

 Approvals of regulations made by SROs and any amendments therein: In

addition to licensing regulations, the PRDD-SMD approves all regulations
proposed by SROs. This includes initial regulations as well as any subsequent
amendments. The department ensures these regulations adhere to legal standards
and serve the best interests of market participants.

 Framing of Rules and Regulations under the Securities Act 2015 and the
Futures Markets Act 2016: The department plays a critical role in formulating
rules and regulations under the Securities Act 2015 and the Futures Markets Act
2016. These Acts provide the legal foundation for the securities and futures

11
 markets, and the department's role is to translate these laws into tangible rules and
regulations that guide market activities.

 Licensing of Regulated Persons: Lastly, the PRDD-SMD is involved in the

licensing process of regulated persons. This means the department assists in
granting licenses to individuals or entities that meet the established criteria to
operate within the securities and futures markets. This process is crucial to ensure
only qualified and competent entities participate in these markets, which helps
maintain market integrity and protect investors.

MY TASKS
Following are the tasks Assigned to me:
 Writing an article on recent amendments in the Listed Companies Act (Code of
Corporate Governance) and Postal Ballot Regulations.
The SECP made some amendments in the section of Code and Corporate Governance of
the Listed Companies Act, and Postal Ballot Regulations. The amendments were related
to the elections of Board of Directors, to ensure diversity and compliance. My task was to
write an article to discuss why there was the need of these recent amendments, and how
these amendments will help in resolving the issue of electing female directors in the
board.
 Compliance Review of Institutions for conducting Director Training Programs
(DTP).
In my role, I was tasked with overseeing institutions that expressed interest in conducting
director training programs. My responsibilities included analyzing their adherence to the
established guidelines for such programs, evaluating the eligibility of their faculty, and
assessing the suitability and sufficiency of the course module they proposed.
Furthermore, I was charged with reviewing the overall compliance of these institutions in
relation to conducting the director training program.
 Evaluating the Performance of CDC’s Board of Directors, Chief Executive Officer,
and Chief Regulatory Officer.
In my role, I undertook the significant responsibility of evaluating the performance of the
Central Depository Company of Pakistan's (CDC) Board of Directors, Chief Executive
Officer (CEO), and Chief Regulatory Officer according to the Guidelines for
Performance and Evaluation of the Board of Directors, CEO, CRO”. The performance
was evaluated on the basis of yearly performance report submitted by CDC as per
12
 regulation 17 of Central Depositories Licensing and Operations Regulation, 2016. This
involved a comprehensive analysis of their leadership effectiveness, strategic decision-
making, and adherence to regulatory standards.
 Extracting specific information from Minutes of the Meeting.
In my role, I was tasked with meticulously reviewing the minutes of the Central
Depository Company of Pakistan's (CDC) meetings. My objective was to identify and
extract any information or discussions pertaining to project profitability or strategies
aimed at enhancing revenue streams. This involved a detailed analysis of the meeting
records to pinpoint key points of discussion, decisions made, and action items related to
financial performance and revenue growth.
 Conducting Research on Regional Stock Exchange Markets.
In my role, I was entrusted with the task of conducting comprehensive research on the
regulations of regional stock exchange markets, specifically those related to margin
trading. The aim was to understand whether their respective Securities and Exchange
Commissions have stipulated any specific fine or penalty percentage (referred to as Late
Payment Fee) to be imposed on an investor who fails to fulfill the requirement for
additional margin in a timely manner. Another research was related to the regulations
related to Gold trading in the regional market. Moreover I also did the research work
related to the Framework of Capital Market Development Fund in international
Jurisdictions.
 Contributed in formulation of the Concept Paper for introducing Capital Market
Development Fund (CMDF) in Pakistan.
In my most recent assignment, I collaborated closely with Executive Directors to develop
a concept paper introducing the Capital Market Development Fund (CMDF) in Pakistan.
The concept paper outlined the necessities, objectives, custodianship, and fund allocation
areas of the CMDF. The primary aim of this initiative was to broaden the investor base
and enhance the capital market of Pakistan.

13
 CRITICAL ANALYSIS
Based on my internship experience at the Securities and Exchange Commission of Pakistan
(SECP), here's how the theoretical concepts of management were reflected in the organization's
management style:
Human Relations Theory
Throughout my internship at the Securities and Exchange Commission of Pakistan, I had the
opportunity to witness first-hand the application of the Human Relations Theory. The supervisors
were instrumental in nurturing a positive work environment that not only promoted social
relationships but also emphasized employee satisfaction. They played a pivotal role in guiding me
through the intricate regulations, as well as the structure and functions of SECP.
The team at PRDD-SMD particularly stood out for their commitment to fostering a healthy work
environment. They encouraged open communication and welcomed innovative ideas from
everyone, creating a culture of inclusivity and collaboration.
One notable experience was when I worked alongside executive directors to develop the concept
paper for the CMDF. Their supportive attitude was truly inspiring. They not only valued my
contribution but also appreciated my recommendations in formulating the outline. Their
encouragement and acknowledgment gave me a sense of belonging and made the process of
working on the concept paper an enriching learning experience. This experience demonstrated a
clear embodiment of the Human Relations Theory, where fostering strong interpersonal
relationships and acknowledging employee contributions significantly enhanced the overall work
experience.
Transformational Leadership Theory
During my internship at the Securities and Exchange Commission of Pakistan, I observed
numerous instances that exemplified the Transformational Leadership Theory. The leaders within
the organization consistently inspired and motivated their teams to go beyond their self-interests
for the greater good of the organization.
The embodiment of this theory was particularly evident in my department, where everyone
diligently fulfilled their responsibilities, often going above and beyond their designated roles.
Their commitment to their work was so profound that they would sometimes work overtime or
even utilize their break time to ensure tasks were completed on schedule.
This level of dedication stemmed from the transformational leadership demonstrated by the heads
of departments and other staff members. Their unwavering commitment and willingness to
sacrifice personal time for the sake of the organization's success served as a powerful source of

14
inspiration. It fostered a culture of hard work, discipline, and dedication within the team, which
resonated with the core principles of the Transformational Leadership Theory.
Contingency Theory
The SECP's various roles in regulating and supervising different sectors such as corporate, capital
markets, insurance, non-banking finance companies, and private pensions suggests a flexible
approach to management, aligning with the contingency theory.
Systems Theory
The SECP operates as a complex system with interrelated elements working towards a common
objective - developing an efficient corporate sector, insurance, NBFC & capital market. This
reflects the systems theory of management.
Scientific Management Theory:
The SECP's focus on creating a standardized and harmonized regulatory and supervisory
framework reflects Taylor's scientific management theory, which emphasizes efficiency and
productivity. This was evident in the way they approach the regulation of the corporate sector and
capital markets.
Administrative Management Theory
Fayol's theory was apparent in the hierarchical structure of the SECP. The clear division of roles
and responsibilities facilitated effective planning, organizing, commanding, coordinating, and
controlling within the organization.

15
 SWOT ANALYSIS

SWOT ANALYSIS

STRENGTHS WEAKNESSES
 Experienced professionals.  The rapidly changing and complex
nature of securities markets can make it
 Encourage Open Communication. difficult to stay ahead of new
 Authority to establish and enforce developments and ensure regulations
regulatory standards for securities are up-to-date.
markets in Pakistan.  Enforcing compliance with regulations
 Welcome innovative ideas from can be challenging due to factors such
everyone. as insufficient penalties for non-
compliance or lack of cooperation from
 Strong Legal and Regulatory market participants.
Framework.

OPPORTUNITIES THREATS
 With the increasing digitization of  Market Volatility.
securities markets, there are
 Risk of non-compliance by market
opportunities to leverage technology to
participants.
improve regulatory oversight and
enforcement.  Cybersecurity Risks: As securities
markets become more digitized, the
 There is potential for increased
risk of cyber threats increases, which
collaboration with other regulatory
could pose significant challenges for
bodies, both nationally and
regulatory bodies.
internationally, to share best practices
and improve regulatory effectiveness.

16
 CONCLUSION
My experience at SECP has been a rich learning journey, providing me with invaluable insights
into the dynamic interplay of management theories in practice and the complexities of securities
regulation. The organization's commitment to fostering a positive work environment, promoting
innovation, and maintaining high regulatory standards serves as a testament to its role as a
leading regulatory body.

17
RECOMMENDATIONS
SECP should:
 Continue to invest in its digital capabilities. This includes using advanced analytics and
AI for regulatory oversight and enforcement.
 Enhance its cybersecurity measures. Regular audits, adherence to globally recognized
cybersecurity standards, and staff training can help mitigate these risks.
 Ensure that its staff have access to continuous learning and development opportunities,
particularly in areas like financial technology, cybersecurity, and risk management.
 Conduct trainings for the general public about the importance of securities regulations
and how they protect investors.
 Collaborate with International Regulatory Bodies.
 Regularly review and update its regulations to ensure they remain relevant and effective.
 Encourages innovation in the securities market and enhance transparency.

18
 REFERENCE AND SOURCES USED
https://www.secp.gov.pk/about-us/what-we-do/
https://www.indeed.com/career-advice/career-development/types-of-management-theories
https://www.secp.gov.pk/document/sro-301-i-2020-guidelines-for-performance-evaluation-of-
board-of-directors-ceos-and-cros/

19