SECP, ABAD Discuss Real Estate Regulatory Framework

ISLAMABAD: On Friday, the Securities and Exchange Commission of Pakistan (SECP), under the leadership of Commissioner Muzzafar Ahmed Mirza, conducted a consultation session with Muhammad Hassan Bakshi, Chairman of the Association of Builders and Developers of Pakistan (ABAD), and his team of industry experts, according to an SECP press release.

The session focused on crafting a regulatory framework for real estate companies seeking to collect advance deposits for real estate projects.

The framework, outlined in the Companies Act, 2017, has yet to be fully implemented. It mandates that companies secure a No-Objection Certificate (NOC) from the SECP before announcing or advertising any real estate project and requires all public advances to be held in an escrow account.

The participants engaged in in-depth discussions on practical challenges, industry realities, and grey areas in the real estate sector to develop a robust framework that balances investor protection with sectoral growth.

SECP representatives underscored their commitment to enhancing regulatory safeguards, ensuring investor confidence, and promoting transparency in project financing through a trustee mechanism.

This consultation represents a critical step toward establishing a balanced regulatory framework that tackles sector-specific challenges while fostering public trust in real estate investments.