Protection of Transfer of Ownership to Private Sector

The ownership, management and control of any banking, commercial, manufacturing or other company, establishment or enterprise transferred by the Government to any person under any law shall not again be compulsorily acquired or taken over by the Government for any reason whatsoever.

Protection of Foreign and Pakistan Investment

No foreign, industrial or commercial enterprise established or owned in any form by a foreign or Pakistani investor for private gain in accordance with law, and no investment in share or equity of any company, firm, or enterprise, and no commercial bank or financial institution established, owned or acquired by any foreign or Pakistani investor, shall be compulsorily acquired or taken over by the Government.

Incentive

Foreign and local investors may avail the following incentives:-

Custom duty of 5% and Zero rated sales tax on import of plant, machinery & equipment, not manufactured locally.
As per plant, machinery & equipment, imported the category of export industry and having failed to achieve targets of exports or exercises the option to forego the benefit of duty concession at post import stage, in excess of customs duty at the rate of one per cent per year of default with a maximum of five per cent of dutiable value at the time of import provided the period of import is equal to or more than five years.

Where period of import is less than five years , in excess of five per cent duty, less one per cent per year for each non-defaulting year. This shall be considered full and final discharge of the entire liabilities.

Objectives of Investors Protection Policies

The main objectives of the investment policy are as under:

To protect the investor from loss
To attract new investors
Self-reliance
Development of value added export
Development of skills to improve efficiency, productivity and quality.
Encouragement of the high tech and labor oriented industries.
Development of infrastructure facilities through establishment of planned industrial estates, areas and zones.
Promotion of the dispersal investment at various locations.
To create a liberal environment for savings and investments
To achieve the investment objectives
To provide legal protection to create confidence in the establishment and continuity of the liberal economic environment.

Investor Protection Policies
In 1976 an Act was passed for the promotion and protection of investment in Pakistan the main feature of the act regarding investor’s protection are as mentioned below:
Fields for Investment
Equal Treatment
Protection of Fiscal Incentives for Setting-up of Industries
Protection of Transfer of Ownership to Private Sector.
Protection of Foreign and Pakistan Investment
Incentive

Fields for Investment
The Federal Government may, consistent with the national interest, for the promotion of investment in any industrial undertaking in the economic development.

Equal Treatment

The federal government removes if difficulty arises in giving effect to any provision of this Act, the Federal Government may make such order, not inconsistent with provisions of this Act, as it may appear to be necessary for the purpose of removing the difficulty.

INVESTMENT

Definition
By the definition an investment refers to the act of investing, laying out money or capital in an enterprise with the expectation of profit. in other words purchase of a financial product or other item of value with an expectation of favorable future returns is called investment.

INVESTOR

Definition
Investor means an individual who makes investments. An investor can act on behalf of others, for example, stock brokers or mutual fund managers make investments for others. Or else an investor can make investments for ones own personal account.

Investment Policy

Pakistan’s Investment Policy has been formulated to create an investor-friendly environment, with a focus on further opening up the economy and marketing the potential for direct investment. The essence of the policy is to strengthen Pakistan’s competitiveness by improving the policy regime, offering fiscal and tariff relief and providing comprehensive facilitation services.

Investor Protection Policies in Pakistan

These are the certain rules guidelines which are being formulated to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

The laws and rules that govern the securities industry in Pakistan derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SECP requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.

Investment and Securities Management

Assignment – MBA (Finance & Banking)

REVIEW OF LITERATURE

Investment |Definition |Investor |Definition | Investment policy |Investor protection policy in Pakistan |Objectives of investment | Important elements of investor’s policy.

PRACTICAL STUDY

SECURITIES and EXCHANGE COMMISSION OF PAKISTAN

SECP |Introduction |History

SECP
Vision |Mission |Main goals |Strategy

Services and Regulations

SECP Investor Protection Policies |SECP Educational Program |SECP Investor’s Guide.

Finalizing

Advantages |Recommendations |Conclusions