Pakistan, May 13 -- ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has proposed a bold new framework to transform industry associations into Self-Regulatory Organizations (SROs) to strengthen the country's financial sector.

The SECP unveiled a Consultation Paper that introduces a set of standard principles for the recognition and conduct of industry associations. The goal is to improve self-regulation, promote transparency, and align with global best practices in financial governance.

Under the proposed plan, eligible trade associations will be required to convert into Section 42 companies under the Companies Act, 2017, operating as not-for-profit entities. This shift will ensure better governance, financial integ...