ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), in collaboration with the State Bank of Pakistan (SBP), is launching the Same-Day Account Opening initiative to facilitate opening of corporate bank accounts.

Sources in the SECP told Business Recorder that the initiative will reduce delays by allowing companies to quickly establish banking relationships, facilitating faster access to financial services, such as credit lines and payment processing. It will streamline the process, eliminating the need for companies to navigate multiple procedures.

Additionally, it will enhance financial inclusion, particularly for small and medium-sized enterprises (SMEs), and improve data accuracy through real-time synchronization between SECP and banks.

Ultimately, this initiative will create a more efficient and business-friendly environment, promoting investment and supporting the growth of businesses in Pakistan.

Sources informed that the SECP’s ongoing digital transformation and regulatory reforms have significantly enhanced the ease of doing business in Pakistan. By streamlining company registration, modernizing compliance processes, and integrating digital solutions, the SECP has fostered greater transparency, efficiency, and investor confidence. Initiatives like eZfile, the Electronic Mortgage Register, AI-powered name reservation, and the transition to book-entry shares reflect SECP’s commitment to innovation and global best practices.

According to sources, the SECP is taking revolutionary steps for transparency, efficiency, and investor confidence i.e. mandating all public unlisted and private companies in Pakistan to issue shares in book-entry form.

This transition to an electronic shareholding system will be facilitated through the Central Depository Company (CDC), ensuring secure, efficient, and transparent record-keeping. By eliminating physical share certificates, the book-entry system will reduce risks such as shareholders’ disputes, loss, forgery and manual errors.

To implement this initiative, the SECP is in the testing phase through running a pilot project, and upon its successful completion, the necessary notifications and circulars are expected to be issued soon. The required technical assistance and infrastructure have been developed, paving the way for the initiative’s imminent rollout.

Another big initiative is the implementation of an AI-powered Name Reservation System to enhance transparency, consistency and efficiency in the company registration process. By leveraging artificial intelligence, this system will eliminate subjectivity in evaluating proposed company names, ensuring compliance with regulatory standards in a more structured and objective manner. Automated approvals and AI-driven decision-making will significantly reduce processing time, minimize human intervention and enhance accuracy.

This innovation will not only expedite the name reservation process but also promote corporatization, foster ease of doing business, and strengthen Pakistan’s overall business environment.

As part of its digital transformation agenda, SECP introduced eZfile, a fully digitized registry that enables individuals to incorporate companies online from anywhere in the world, aligning Pakistan’s corporate registration framework with international best practices. The user registration system is equipped with robust security measures and automated identity verification, ensuring authenticity through integration with Nadra and PMD. As a result, 99.9% of companies are now registered digitally. With the help of intuitive and self-explanatory tools, investors can seamlessly submit name reservation and company incorporation applications within minutes.

The SECP has made significant strides in its digitalization journey following a digital transformation program named Leading Efficiency through Automation Prowess (LEAP) to position itself as a role-model regulator through end-to-end automation of its business processes. Through this journey, the existing online filing portal eServices is replaced with eZfile, a more advanced online filing portal, in a phased manner. Phase-1a of eZfile related to transformation of all processes of LLP while Phase-1b supported transformation of major processes relating to companies. eZfile has revolutionized regulatory compliance by enabling seamless submission of corporate documents, enhancing efficiency, transparency and accessibility. Building on this milestone, the SECP continues to modernise its processes through automation, integration of digital solutions, and improved user experience. These efforts align with SECP’s vision of fostering ease of doing business and promoting a tech-driven regulatory environment in Pakistan.

The Commission has also introduced the Electronic Mortgage Register (EMR) to streamline the registration and tracking of mortgages. EMR serves as a centralized digital database, providing financial institutions with easy access to mortgage-related information.

The SECP has considerably simplified the regulatory framework by reviewing existing regulations and reducing the number of statutory forms from 75 to 28, eliminating duplication and ensuring clarity.

Sources added that a Special Committee was formed to identify necessary amendments, focusing on operational challenges and the digital transformation project (LEAP). To ensure a thorough review, consultations were held with key stakeholders, including legal and accountancy firms, ICAP, ICMAP, PBA, and corporate consultants. Comparative research on company laws in the UK, India, Malaysia, and Hong Kong further informed the process. A concept paper summarizing recommendations is under review, with final amendments to be submitted for approval, the SECP sources added.—SOHAIL SARFRAZ