Islamabad: The Securities and Exchange Policy Board of the Securities and Exchange Commission of Pakistan (SECP) has agreed to withdraw the condition of obtaining SECP permission before public announcement of projects by real estate companies, a news source reported. This was a proposal given by the Pakistan Business Council (PBC).
SECP will also propose the formation of a Real Estate Regulatory Authority to oversee the real estate sector.
The section 456 (2)(a) of the Companies Act 2017 deals with the real estate companies to seek permission from SECP before public announcement of projects.
The PBC’s proposal was that since real estate projects already have to be approved by provincial or local authorities like SBCA, approval from SECP is an unnecessary duplication. The proposal further said that it is not equitable to require incorporated real estate companies to seek permission when those operating in the sector through partnership do not have to do the same.
