Section 2: Definitions. 1[(1)] In this Act, unless there is anything repugnant in the subject or context,

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A general explanation to aid understanding. The official statutory text appears below.

This section defines the following terms used in The Securities and Exchange Commission of Pakistan Act, 1997: • appointed day — the day on which section 43 comes into force; 1[ • administered legislation — the legislation administered by the Commission as specified in the Schedule I;] • Authority — the Corporate Law Authority constituted under the Companies Ordinance, 1984 (LXVII of 1984); • Board — the Securities and Exchange Policy Board established under section 12; • Chairman — the Chairman of the Commission 1[and includes the Acting Chairman]; • civil servant — a civil servant as defined in section 2 of the Civil Servan ts Act, 1973 (LXXI of 1973); 1[ • clearing house — a company that is licensed by the Commission as a clearing house;] * i.e. 1-1-1999 , See SRO 1404(1)/98, dt 31-12-98 1 Numbered, added, ins. and subs. by Act No. XXXVI of 2016, s. 2 • Commission — the Securities and Exchange Commission of Pakistan established under section 3; • Commissioner — a Commissioner of the Commission and shall include the Chairman thereof; • committee — a committee of the 1[Commission or the Board] constituted under 1[this Act] ; 1[ • Court — the Company Bench of a High Court as provided in sections 7 and 8 of the Companies Ordinance, 1984 ( XLVII of 1984 )] • dealing in securities — making or offering to make, whether as principal or agent, with any person or inducing or attempting to induce any person to enter into or to offer to enter into— (i) any agreement for or with a view to acquiring, disposing of, subscribing for or underwriting securities, or (ii) any agreement the apparent or ostensible purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; 1[ • Fund — the fund established under section 23; 2[ • Law of insurance — the Insurance Ordinance, 2000 (XXXIX of 2000) or any other law in relation to insurance, the administration of which is vested in the Commission by the Federal Government by notification in the official Gazette.] • Member — a Member of the Board; 1Subs. and Ins. by Act No. XXXVI of 2016, s. 2. 2Ins. by Ord. No. LV of 2000, s. 2 • NBFI — a non-banking financial institution and includes a development finance institution, a Modaraba, a leasing company, a housing finance company and an investment bank but shall not include a banking company as defined in clause (c) of section 5 of the Banking Companies Ordinance, 1962 (LVII of 1962); • Ordinance — the Companies Ordinance, 1984 (XLVII of 1984); • private sector person — a person who is not in the service of Pakistan or of any statutory body or any body which is owned or controlled by the Federal Government or a Provincial Government not including a University or an educational institution; 1[ • regulated activity — any activity which is required to be registered with or licensed by the Commission under this Act or any administered legislation; • regulated person — a person or entity licensed or registered under this Act or any administered legislation to carry on or engage in a regulated activity not being an institution exclusively regulated by the State Bank of Pakistan;] • regulations — the regulations made by the Board or the Commission; [*]1 • rules — the rules made by the Federal Government [;]1 1[ • Schedule — schedule annexed to this Act; • self regulatory organization — an entity connected with financial services market and registered by the Commission under this Act for the purpose of regulating the operations, standards of practice and business conduct of its members and their representatives with a view to promote protection of investors and the public interest; • specified — specified by the Commission through regulations made under this Act; • subordinate legislation — any rules or regulations made under this Act or any administered legislation; and • systemic risk — the risks, including potential, emerging and systemic risks in financial services market, entities, infrastructure, products and activities which may impact the ability of the Commission to fulfil its regulatory responsibilities provided in this Act. ] 1[(2) Unless the context requires otherwise, the words and expressions used in this Act but not defined herein shall have the same meaning as assigned to them under the administered legislations.] 1Ins. omitted, subs. and added by Act No. XXXVI of 2016, s. 2. PART II THE COMMISSION This is the official statutory text, shown as written — it is not a paraphrase or a legal opinion. Consult a verified lawyer to see how it applies to your specific situation.

2. Definitions. 1[(1)] In this Act, unless there is anything repugnant in the subject or context, — (a) “appointed day” means the day on which section 43 comes into force; 1[(aa) “administered legislation” means the legislation administered by the Commission as specified in the Schedule I;] (b) “Authority” means the Corporate Law Authority constituted under the Companies Ordinance, 1984 (LXVII of 1984); (c) “Board” means the Securities and Exchange Policy Board established under section 12; (d) “Chairman” means the Chairman of the Commission 1[and includes the Acting Chairman]; (e) “civil servant” means a civil servant as defined in section 2 of the Civil Servan ts Act, 1973 (LXXI of 1973); 1[(f) “clearing house” means a company that is licensed by the Commission as a clearing house;] * i.e. 1-1-1999 , See SRO 1404(1)/98, dt 31-12-98 1 Numbered, added, ins. and subs. by Act No. XXXVI of 2016, s. 2. (g) “Commission” means the Securities and Exchange Commission of Pakistan established under section 3; (h) “Commissioner” means a Commissioner of the Commission and shall include the Chairman thereof; (i) “committee” means a committee of the 1[Commission or the Board] constituted under 1[this Act] ; 1[(ia) “Court” means the Company Bench of a High Court as provided in sections 7 and 8 of the Companies Ordinance, 1984 ( XLVII of 1984 )] (j) “dealing in securities” means making or offering to make, whether as principal or agent, with any person or inducing or attempting to induce any person to enter into or to offer to enter into— (i) any agreement for or with a view to acquiring, disposing of, subscribing for or underwriting securities, or (ii) any agreement the apparent or ostensible purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; 1[(ja) “document” includes any information recorded in any form, including documents or statement of accounts in respect of customers maintained by financial institution, through modern electronic devices or techniques and data or information recorded in any legible form;] (k) “employee'' means any officer or servant of the Commission; 1[(ka) “financial services” mean all services provided by regulated persons under this Act or any administered legislation, but shall not include any service exclusively regulated by the State Bank of Pakistan; (kb) “financial services market” mean all markets in which financial services are provided and includes the capital market and the insurance market;] (l) “Fund” means the fund established under section 23; 2[(la) “Law of insurance” means the Insurance Ordinance, 2000 (XXXIX of 2000) or any other law in relation to insurance, the administration of which is vested in the Commission by the Federal Government by notification in the official Gazette.]. (m) “Member” means a Member of the Board; 1Subs. and Ins. by Act No. XXXVI of 2016, s. 2. 2Ins. by Ord. No. LV of 2000, s. 2. (n) “NBFI” means a non-banking financial institution and includes a development finance institution, a Modaraba, a leasing company, a housing finance company and an investment bank but shall not include a banking company as defined in clause (c) of section 5 of the Banking Companies Ordinance, 1962 (LVII of 1962); (o) “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); (p) “private sector person” means a person who is not in the service of Pakistan or of any statutory body or any body which is owned or controlled by the Federal Government or a Provincial Government not including a University or an educational institution; 1[(pa) “regulated activity” means any activity which is required to be registered with or licensed by the Commission under this Act or any administered legislation; (pb) “regulated person” means a person or entity licensed or registered under this Act or any administered legislation to carry on or engage in a regulated activity not being an institution exclusively regulated by the State Bank of Pakistan;] (q) “regulations” means the regulations made by the Board or the Commission; [*]1 (r) “rules” means the rules made by the Federal Government [;]1 1[(s) “Schedule” means schedule annexed to this Act; (t) “self regulatory organization” means an entity connected with financial services market and registered by the Commission under this Act for the purpose of regulating the operations, standards of practice and business conduct of its members and their representatives with a view to promote protection of investors and the public interest; (u) “specified” means specified by the Commission through regulations made under this Act; (v) “subordinate legislation” means any rules or regulations made under this Act or any administered legislation; and (w) “systemic risk” means the risks, including potential, emerging and systemic risks in financial services market, entities, infrastructure, products and activities which may impact the ability of the Commission to fulfil its regulatory responsibilities provided in this Act. ] 1[(2) Unless the context requires otherwise, the words and expressions used in this Act but not defined herein shall have the same meaning as assigned to them under the administered legislations.] 1Ins. omitted, subs. and added by Act No. XXXVI of 2016, s. 2. PART II THE COMMISSION

Effective date: 1997-01-01

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