The Securities and Exchange Commission of Pakistan (SECP) held an awareness session for members of the Association of Builders and Developers (ABAD), focusing on company registration, corporate reforms and measures designed to encourage businesses to adopt formal corporate structures. Following the session, members of the builders and developers community have started considering converting their existing businesses into companies and registering Real Estate Investment Trusts (REITs).
The session was conducted at the ABAD Head Office and was attended by a delegation led by SECP Commissioner Muzaffar Ahmed Mirza. ABAD Chairman Muhammad Hassan Bakshi, Senior Vice Chairman Syed Afzal Hameed, Vice Chairman Tariq Aziz Memon and other members of the builder community participated in the briefing. The meeting provided an opportunity for representatives of the real estate sector to discuss corporate registration requirements and reforms introduced by the securities regulator.
During the session, Commissioner Muzaffar Mirza briefed ABAD officials about SECP measures aimed at simplifying the process of business registration and encouraging unregistered businesses to operate through formal corporate structures. He explained that registering a company gives a business a separate legal identity from its shareholders. This structure also provides protection for the personal assets of shareholders, subject to the applicable legal framework governing companies.
The briefing also covered the use of digital services for company registration and regulatory filings. Sydney Custodio Pereira, In-charge of the Karachi Company Registration Office, provided a practical demonstration of the SECP’s eZfile portal. The demonstration explained how digital integration has made the company registration and filing process faster, allowing businesses to complete relevant regulatory procedures through an online platform.
The SECP delegation also highlighted the potential benefits of operating under a formal corporate structure. Corporate status can facilitate access to financing and provide businesses with opportunities to engage with both domestic and international markets. Company registration can also support businesses seeking financing by establishing a formal legal and organizational structure that can be used in their dealings with financial institutions and other stakeholders.
ABAD leadership appreciated the SECP’s initiative and expressed interest in the reforms discussed during the awareness session. The association confirmed that its members are considering converting their businesses into companies as part of the move toward formal corporate structures. ABAD members will also consider the registration of Real Estate Investment Trusts, which could provide another corporate and investment structure for activities connected with the real estate sector.
The meeting also resulted in an understanding between the ABAD leadership and the SECP regarding proposals concerning the real estate industry. ABAD agreed to submit sector-specific proposals to the SECP under the Companies Act, 2017. These proposals are expected to provide an avenue for the builders and developers community to raise issues and suggest measures relating to the regulatory framework applicable to businesses operating in the real estate sector.
The awareness session forms part of the SECP’s broader engagement with businesses and industry stakeholders on corporate registration and regulatory reforms. By providing information about company incorporation, digital filing facilities and available corporate structures, the session gave ABAD members a clearer understanding of the processes involved in formalizing their businesses. The consideration of company conversion and REIT registration by members could also lead to further engagement between the real estate sector and the SECP on corporate and regulatory matters.
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