The Securities and Exchange Commission of Pakistan (SECP) has announced a significant regulatory reform aimed at streamlining corporate banking processes. In a circular issued under the Companies Act, 2017, the SECP has prescribed a standardized format for board resolutions required for the opening of corporate bank accounts. The measure seeks to eliminate inconsistencies in documentation, reduce compliance bottlenecks, and strengthen transparency in Pakistan’s corporate and financial ecosystem.
The initiative comes under the broader theme of SECP’s 7th Registrar Conference, “From Paper to Platform,” which emphasizes digital transformation and regulatory modernization. Until now, companies faced significant hurdles due to the absence of a uniform format for board resolutions. The lack of standardization often resulted in varying documentation requirements across banks, leading to compliance-related queries, delayed processing, and in some cases, setbacks in foreign direct investment inflows, especially for startups and firms with foreign directors.
By introducing a uniform resolution format, SECP aims to reduce these challenges and improve efficiency in corporate onboarding processes. The standardized approach ensures faster approvals by banks, fewer compliance queries, and enhanced transparency. Additionally, it incorporates QR code-enabled digital verification features designed to safeguard against forgery or unauthorized changes. These measures are expected to not only expedite account opening procedures but also boost investor confidence by ensuring secure and reliable documentation.
According to SECP, companies will now be able to electronically submit the standard board resolution. The document must be digitally signed and authenticated by an authorized officer, signaling a decisive move toward paperless workflows. This shift aligns with Pakistan’s broader digital transformation agenda and strengthens regulatory oversight by embedding secure digital processes into corporate governance frameworks.
Financial institutions are being encouraged to adopt the prescribed QR-enabled resolutions as part of their internal due diligence. The QR codes will allow instant verification of key details such as company name, resolution date, director attendance, and authorized signatories. This feature addresses long-standing issues of verification delays and remote validation, particularly for businesses with geographically dispersed directors.
The SECP believes this initiative will deliver considerable time and cost efficiencies for both companies and banks, ultimately creating a smoother and more transparent process for corporate clients. It also strengthens Pakistan’s ease of doing business framework, positioning the country as more attractive for domestic entrepreneurs as well as foreign investors seeking reliable regulatory practices.
This reform is one among a series of SECP measures designed to promote standardization, enhance transparency, and advance digital adoption across Pakistan’s financial system. By encouraging paperless compliance, fostering secure verification mechanisms, and simplifying processes for companies of all sizes, the SECP continues to reinforce its role as a driver of regulatory innovation.
The standardized board resolution format is now publicly available for download on SECP’s official website, providing companies with direct access to the updated documentation required for corporate bank account openings.