SECP Newsletter Annual Jan 2009

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Official Newsletter of SECP

Annual 2008

Winter Edition

At the end I appreciate your cooperation and look forwardfor your contributions.

Editorialhe global economic meltdown jolted 2008, and 2009began with numerous global challenges. For SECP,T2008 remained equally important as it achieved some

mportant milestones in the development of capital markets,corporate sector and other areas under its preview.

As an individual, we all need to start off thinking what we lost

and gained during last year and what we have to achieve in thenew year. We desire to touch new horizons and for that weneed to put up the best efforts. China's most famous teacher,philosopher and political theorist Confucius said, When it isobvious that the goal cannot be reached, don't adjust thegoals; adjust the action steps.

The annual issue of Vision is in your hands; an effort hasbeen made to give a glimpse of the events during the year. Theead story encapsulates SECP's achievements during lastyear, while another story has been produced on corporategrowth in 2008; it is a useful piece highlighting a total numberof companies registered along with sector analysis.

Knowledge Management is the most important area of the day.Leading organizations around the world have realized itsmportance and try to equip themselves to make use of it. Anarticle on Knowledge Management is included in this issue.Moreover, a story on regulatory oversight with focus onoccupational pensions and saving scheme in Pakistan is alsoadded apart from the regular features of the Vision.

The Vision TeamEditor: Imran Ghaznavi

Asst. Editor:Asfandyar KhattakUrdu Contributor:Abid Agha

Graphic Designer:Attia Zainab

For contributions and suggestions contact us at:Internal and External Communications Department,SECP

NIC Building, Jinnah Avenue, Islamabad-44000Ph: +92-51-9218593, Fax: +92-51-9206459

Email: [email protected]

Mr. Salman Ali Shaikh Takes Charge as Acting Chairman SECP

Mr. Salman Ali Shaikh has taken charge as the Acting Chairman of SECP after a notificationissued by the Federal Government upon the completion of tenure of Mr. Razi-ur-Rahman Khan asChairman SECP. Mr. Shaikh has rich experience in public and private sector and has beenserving as Commissioner, Specialised Companies Division, SECP since 2004.

Mr. Shaikh has extensive experience spanning our 32 years, mainly in banking and finance.Specifically, he has worked as a senior emerging markets banker with an expertise in large-scale debt recovery/remedialbanking, insolvency reforms, financial sector restructuring, and regulatory/legal reforms. His expertise also includes seniormanagement, corporate rehabilitation/restructuring and capacity building/target market cluster selection in the SME sector.

After starting his career with Pakistan Administrative Staff College, Lahore, Mr. Shaikh has spent the major part of hisprofessional life with the American Express Bank, the Citibank and Habib Bank of Pakistan.

Mr. Razi-ur-Rahman Khan, who had been appointed as Chairman SECP on January 12, 2006, completed his 3-year tenureon January 12, 2009. During his tenure,

Mr. Khan took various key initiatives for the development of Pakistan's capital markets andcorporate sector. His contributions include the much-needed reforms in the capital markets,introduction of risk management regime in the stock exchanges, significant progress ondemutualisation of stock exchanges, introduction of Continuous Funding System (CFS Mk II),eServices project, and important developments in the Insurance industry and NBFCs.

His services also include various initiatives for the institutional development of SECP and thewelfare of its employees.

Mr. Razi-ur-Rahman Khan Completes his Term as Chairman

Mr. Salman Ali Shaikh

Mr. Razi-ur-Rahman Khan


4/24vision4The development of modern and efficient corporate sector and capitalmarket, based on sound regulatory principles, that provide impetus forhigh economic growth and foster social harmony in the Country.

Total Registered CompaniesCorporate portfolio consisted of a total of 52,612 companiesegistered upto 31 December, 2008. Private companiesccounted for 90.37 % (47,548) companies of the totalompanies, followed by public unlisted companies at 4.2 %2,189), and public listed companies at 1.2 % (614)ompanies.

New Incorporation of CompaniesDuring the calendar year 2008, up to December 31, 2008, aotal of 4,461 new companies were registered. Privateompanies totalling 4,153 accounted for 93 % of the newly

ncorporated companies, followed by 175 single memberompanies at 4 % and 67 public unlisted companies at 1.5%.

Graph showing the year wise incorporation from the year

999, is given below:

Sector-wise New IncorporationDuring the calendar year 2008, the most flourishing sector in

terms of number of new registration was Services sectorwhereby 665 companies were registered, followed by 489companies registered in Trading, 261 in Construction, 204 inInformation Technology, 195 in Communications, 135 inFood and Beverages, 119 in textile and 106 in engineeringsector.

Total Registered Companiesas on 31

stDec., 2008

Company Kind Number of Companies

Public Listed614

Public Unlisted 2189

Private Company 47,548

Single Member Company 846

Companies Limited by Guarantee u/s 43 64

Not for profit Associations u/s 42 416

Trade Organizations 203

Foreign Companies 724

Unlimited Companies 3

Companies under section 503 (2) 5

Total 52,612

Type of Companies

(Jan- Dec., 2008)Total

Public Unlisted Companies 67

Private Companies4,153

Single Member Companies175

Associations under section 4239

Foreign Companies25

Companies limited by Guarantee under section 431

Trade Organizations 1

Total 4,461

932 1,0311,113

1,3581,718

2,567

4,217

5,537

4,841

4,461

0

1,000

2,000

3,000

4,000

5,000

6,000

NewIncorporatedCompanies

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Calendar Year

CORPORATE GROWTH

Corporate Growthin Year 2008by Beenish Saleem

Major Sector-wise Concentration

(Jan-Dec 2008)

665

489

261

204

195

135

119 106

0

100

200

300

400

500

600

700

Services

Trading

Construction

Information Technology

Communication

Food & Beverage

Textile

Engineering

S. No. Major Sectors No. of Companies

1

Services 665

2

Trading 489

3

Construction 261

4

Information Technology

204

5

Communications 195

6

Food & Beverage

135

7

Textile 119

8

Engineering

106


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Annual 2008

Winter Edition

SECP The Milestones of 2008Continued from page 1

rimarily facilitates the online availability of name, onlinencorporation of companies and electronic filing of statutoryeturns, without visiting the SECP offices.

Also, a significant achievement was made in scanning andrchiving of corporate records, part of which is underway,

which is intended for improving the efficiency andffectiveness of the business processes of the organization

nd create a speedy, transparent and paperlessnvironment. Scanning has been completed at SECP'sarachi, Islamabad and Sukkur offices while it is in progresst other cities. A content management solution is underway

which will enable users to rapidly access the scannedocuments pertinent to theireeds and requirements.

. Insurance Sectorhe committee to review the

m i n i m u m s o l v e n c yequirements, includingllocation of investments,

riteria for admissibility ofssets, and reporting onolvency by insurers as part ofheir regulatory annualccounting returns, presenteds recommendations, basedn w h i ch , t h e a g re e d

modifications / amendmentsn the rules, are in the processf notification by SECP.

A c t u a r i a l V a l u a t i o nRegulations are also part ofhe said amendments.

n order to encounter thehird-party motor compulsory insurance certificates bynauthorized persons/entities, and to make it mandatory forll vehicles on the roads to have insurance cover, afteretailed deliberations with Insurance Association of Pakistannd approval from the Ministry of Finance, the proposal hasot only been put forward to the respective provincialovernments but also being pursued by SECP, for

mplementation.

ECP, jointly with State Bank of Pakistan on the Task Forcen Crop Insurance, developed and introduced crop

nsurance products covering Agricultural Loans. Developedn the light of the recommendations of the task force, Nationalnsurance Corporation has already launched its cropnsurance products.

n "Insurance Industry Regulatory System" application waslso introduced. This is a data importing module to validateata from Excel Sheets submitted by insurers via electronicing.

. Capital MarketsECP regulates the primary and secondary capital market

ctivities as well as capital market intermediaries. A major set

of feats was achieved during the year 2008.A comprehensive Risk Management Regime was introducedwhich included Pre-trade Margin Verification System, VaRbased Client Level Margining System, Special Margins tocontrol excess volatility and controls speculative bubbles,Haircut Regime-Valuation of Securities held as Collateral(based on VaR and impact cost), New Netting Regime whereno netting is allowed across clients, settlement periods, scripsand different markets. Position limits have also beenintroduced (for each scrip) based on a percentage of free float.Position limits are at client, broker and market levels and daily

collection of mark-to-market losses A specialized "Market Monitoring Software" was alsointroduced, for monitoring of capital market activities on realtime basis. Some of the discrete functions of this application

are Multi Exchange &M u l t i S e g m e n tSu rve i l l a n ce , A le r tC r e a t i o n &M a n a g e m e n t ,Identification of People

Acting in Concert, CaseM a n a g e m e n t ,

M u l t i d i m e n s i o n a lanalysis with variableparameters and MarketReplay.

Some new products andupshots pertinent tocapital markets werealso introduced in theyear 2008 including KMI-30 Index, Cash SettledFutures, Stock IndexFu t u re s a n d Bo o k

Building mechanism forissue of capital.

With a close focus over fostering of the derivative market inthe country, the Commission accorded approval to NationalCommodity Exchange Limited of three new Futures Contractsof IRRI 6 Rice, Mini Gold and Gold 1 Kg, whereas, two moreFutures Contracts of Currency and Interest Rate are in theprocess.

4. Non-Banking Financial SectorIn a major development, SECP has introduced the regulatoryframework for Real Estate Investment Trusts (REITs). REITs

would be established in Trust form where the property wouldbe vested in trustee and managed by the REIT ManagementCompany (RMC). The minimum fund size is specified as Rs.5billion. The scheme will either be Developmental i.e.construction and sale of property or Rental i.e. rental ofproperties. SECP has also implemented InternationalValuation Standards for REITs

In another key development, the Religious Board forModarabas formed by SECP approved model IslamicFinancing Agreements for the Modaraba Sector. TheReligious Board approved the following Shariah Compliantmodel Islamic Financing Agreements for Modaraba sector: (i)

SECP, jointly with State Bank ofPakistan on the Task Force on

Crop Insurance, developed and

introduced crop insuranceproducts covering AgriculturalLoans. Developed in the light of

the recommendations of the taskforce, National InsuranceCorporation has already

launched its crop insuranceproducts.



iminishing Musharika, (ii) Ijara, (iii) Istisna, (iv) Modaraba,v) Musawamah, (vi) Musharika, (vii) Murabaha, (viii) Salam,x) Syndicate Modaraba, (x) Syndicated Musharika, (xi)slamic CFS Murabaha, and (xii) Sukkuk (Islamic Bonds).he Agreements have been designed to bring the Modarabaector at a level-playing field with the financial institutions ando provide new products for the Islamic financial market.

o facilitate NBFC operations and put in place risk mitigationmeasures in view of the challenges posed by marketonditions, particularly since August, 2008, SECP notified the

on-Banking Finance Companies and Notified EntitiesRegulations, 2008. The purpose of revamping theRegulations is to address the market related operational

sues, enhance transparency and remove any ambiguity toafeguard the interests of the investors and ensure efficientegulation of all NBFCs.

ECP continuously strives to offer financial products to thenvestors which are tailored to suit the market conditions andarious segments accordingo their risk appetite. After

REITs another developmentn th is rega rd i s the

ntroduction of Private Equitynd Venture Capital FundsPE&VCF). Private equityan play a vital role inansformation of the localconomy by provid ingrowth capital to the localorporate sector particularlyhe SME sector besidesatronizing entrepreneurshipnd fuelling the privatizationrocess.

. V a l u e - a d d e dAccomplishments

As a member o f thenternational Organization ofecur i t ies CommissionOSCO), SECP signed

MoUs for exchange ofn f o r m a t i o n , m u t u a lssistance and promotion of standards of regulations witharious jurisdictions like Australian Securities andnvestments Commission, South Asian Securities

Regulators, Maldives Monetary Authority, Securities andxchange Commission of Sri Lanka, Royal Monetaryuthority of Bhutan, Securities and Exchange Board of India.

ECP also initiated the process of joining the IOSCO'sMultilateral Memorandum of Understanding (MMOU) which

rovides a clearer benchmark for international cooperationnd information sharing. Being a member in IOSCO'smerging Markets Committee, SECP is also chair of its

Working Group (EMC-WG3). After the completion of its reportn "Capital Adequacy Requirements for Market

ntermediaries", and as chair of EMC-WG3, SECP isurrently mandated to develop.

Guidelines for Minimum Entry Requirements and ContinuousRisk Based Supervision for Market Intermediaries. Theproject is currently under way and is expected to bringPakistan on the vanguard of prominent and responsibleregulators around the world. Also, SECP provided regularfeedback on relevant areas of the cooperation on AssessmentQuestionnaires by various jurisdictions like Malaysia, China,Oman, etc.

As a vicar and exponent of good Corporate Governancepractices, SECP positively contributed in various surveys and

recounts namely by Organization for Economic Cooperationand Development (OECD), Hawkamah Institute of CorporateGovernance Dubai and SAARC Inter-Governmental FinanceGroup.

A comprehensive set of work in the area of Anti-MoneyLaundering (AML) was done, with focal point for compliancewith AML laws by its adopters, as a member of GC and NEC,and member of sub-committee formed by NEC for drafting of

Rules and Regulationsand amendments in AMLOrdinance, 2007, to bringit in line with FATF

recommendations and UNConven t ions . Apa r t ,SECP provides regularfeedback on relevantareas of the AssessmentQuestionnaire for MutualEvaluation of Pakistan on

AML regime by APG &World Bank.

SECP cognizant of theneed and in an effort toensure that the investor is

p ro t e c t e d a n d w e l lserviced through betterquality intermediation,established country's firstIns t i t u te o f Cap i ta lM a r k e t s ( I C M ) , i nc o l l a b o r a t i o n w i t hstakeholders includingKarachi, Lah

ore and Islamabad Stock Exchanges,National Commodity Exchange, CDCand National Clearing Company, MutualFunds Association of Pakistan,

ICMAP and CFA Association ofPakistan. ICM is a not-for-profitinstitution based in Karachiwhich will act as a certifyingbody for capital marketprofessionals.

And the journey goes on whileSECP keeps on surpassingi t s t r i u m p h s ! T h i scompilation has been made

possible with laudable prop and encouragement from allDivisions and Departments of SECP. There has been a list of

accomplishments which could not be accounted here due to

A comprehensive set of work inthe area of Anti-Money

Laundering (AML) was done, withfocal point for compliance withAML laws by its adopters, as amember of GC and NEC, and

member of sub-committeeformed by NEC for drafting of

Rules and Regulations and

amendments in AML Ordinance,2007, to bring it in line with FATF

recommendations and UNConventions.


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Annual 2008

Winter Edition

Developments till Date

Vision ahead Legislation needed: Things done andRoadmap ahead:

Subsequent to the Occupational Pensions and SavingsSchemes workshop, a survey to gather data regarding thevariants of the Occupational Pensions and Savings

mportant developments ranging from, a workshop toSchemes arrangements in place in Pakistan was carried

explore viability of regulation of Occupational Pensionsout. The decision to carry out the survey was taken as theIand Savings Schemes; a survey to find the market size,SECP realized that there was no register of Occupational

tatistics and the loopholes in the existing structure of thePensions and Savings Schemes or any kind of database

enefit arrangements; till finally getting the SECP's pensionthat could give an account of the coverage of Occupational

mandate amended to include the private sector retirementPensions and Savings Schemes, investment structure,

enefit arrangements, are mentioned hereunder:-benefits disbursed and to be disbursed etc. The followingwere the highlight areas of the survey:

Occupational Pensions and Savings Schemes

workshop: The Commission organized a workshop onlObjective of the survey: The main objective of the survey

Occupational Pensions and Savings Schemes during 2007.included: to develop a basic comprehension of the existing

he workshop attracted a number of leading figuresstructure of Occupational

e p r e s e n t i n g a s s e t sP e n s i o n s a n d S a v i n g s

managers, actuaries andSchemes; to know the existing

m p l o y e r s h a v i n gregulatory framework i.e.

onsiderable experience ofw h e t h e r i t p ro v id e d a n

Occupational Pensions andencouraging or discouraging

avings Schemes. Theenvironment; and asset mix and

workshop produced a numberpenetration of assets in to

f ideas and suggestions andsavings markets. The data

collective positive view forsought was meant to be utilized

ncouraging the developmentfor broad policy purposes onf professional managementoccupational savings, social

f Occupational Pensions andsecurity, pensions etc.

avings Schemes. Theworkshop saw the consensus

lMethodology of the survey:f the participants to the

The data collection forms wereollowing points::-

sent to 575 listed companies,excluding open and close end

Need for separation ofmutual funds. Out of these, 355

ssets from employer: Thelisted companies responded i.e.

eed for keeping the scheme65%. The information sought in

ssets separate from thethe survey forms/ survey

mployer was not realized by aformats were carefully devised

umber of employers who,and these also took into accountnstead of creating a separate

the important input form the Occupational Pensions andust for the schemes, were administering the schemes

Savings Schemes workshop. The information soughthemselves.

covered the period from January 01, 2006 to June 30, 2007.

Funding issues: The funding of defined benefitlStatistics collected: The data collected via the survey

rrangements was inadequate i.e. defined benefitrevealed that the Occupational Pensions and Savings

rrangements involve issues as lack of funding/ inadequateSchemes had a total fund size of Rs. 242 billion, enshrining

unding.a total number of 608,286 employees (table 'A'). Out of 355employers who responded to the survey, some 13% offered

Actuarial valuations: The mandatory actuarial valuationsall of the pension, provident fund and gratuity; 27% offered

were not a regular feature.provident fund and gratuity; 23% only provident fund and33% only gratuity (table 'B'). So far as the investment

Imprudent use of schemes money: The employers were structure of the three kinds of schemes is concerned, 54% ofsing the money contributed to such schemes in their ownthe collective investment of the three schemes is

ersonal interest rather than in members' interest.concentrated in national savings schemes; 15% in equitysecurities and 13% in bank deposits (table 'C').

Independence of trustees: The independence of trusteesould not be guaranteed due to nature of relationship withhe employers.

Lack of individual investment choice: As the money The Occupational Pensions and Savings Schemes industryontributed to the benefit arrangements was invested in is worth Rs. 242 billion as on June 30, 2007. It is so importantecurities as per the uniform policy for the whole scheme, it to note that this amount represents the listed companieseprived the employees of the individual investment choice. only which responded to the Occupational Pensions and

Savings Schemes survey. Thus, the size of Occupational

Occupational Pensions and Savings Schemes Survey: Pensions and Savings Schemes funds with the entire

ofOccupational Pensions and

Saving Schemes in Pakistan

Regulatory Oversight

by Syed Jamal Ahmed Zaidi

Part II



Occupational Pensions and Savings Schemes to be properlyregulated.

Liaison with Federal Board of Revenue: Subsequent tothe amendment in the SECP Act, SECP shall move ahead inliaison with FBR as whatever regulatory oversight theOccupational Pensions and Savings Schemes are subjectto, that is from Federal Board of Revenue, who play a quasiregulatory role i.e. they only regulate the income tax side ofthe Occupational Pensions and Savings Schemes. Thismeans that the act/ regulations/ guidelines to be developedby SECP shall lay down the procedure as to which areas the

Federal Board of Revenue shall continue to watch and whichareas shall be regulated/ legislated by SECP.Chief features envisioned in the new legislation: Thenew legislation shall entail a number of areas. Somecharacteristic / features being sought include the following:

lRegistration of trusts with SECP: SECP shall have thepowers to register retirement benefit trusts and prescribeconditions for registration.

lInvestment guidelines/ IAS compliance: The investmentguidelines and accounting/ disclosure requirements for theentities/ trusts shall be prescribed in light of International

Accounting Standard 19: employee benefits.

lDisbursement of benefits and appeal procedure: Thestandards as to payment of benefits and appeals procedureshall be prescribed.

lEnforcement actions: Procedure to be followed inenforcement actions against fraud, violation of investmentguidelines, front-running, use of trading mechanisms whichare not in the best interests of individuals, marketmanipulation, shall be prescribed.

lExploring possibility of individualized investment: Thepossibility shall be explored as to how each member of thetrusts can be provided the individualized option to choose toinvest the contribution belonging to him as per his personalchoice remaining within the bounds of the investmentsguidelines.

lFit and proper test criteria for players: The requirementssuch as fit and proper test for trustees shall be prescribed.

lExisting investment regulations to be suitably reviewed/replaced: Refined investment regulations in contrast to the

existing relatively vague regulations in respect of suchschemes shall be prescribed.

lQualification requirements for actuaries/ auditors: Clearguidance regarding qualification of actuaries/ auditors inrespect of retirement benefit trusts under the new legislationshall be prescribed.

lProvision of master trusts: A new type of poolingarrangement i.e. Master Trusts shall be introduced. MasterTrust is a fund to which more than one employer cancontribute to provide benefits to their employees. This wouldenable the small employers to join a master trust offered by

another employer or a fund manager instead of creating a

orporate sector would be even larger. In this connection, theoadmap ahead for SECP follows, preceded by the chiefsues being confronted and the steps already taken till date:

Why new legislation? The need for new and comprehensive

egislation in respect of Occupational Pensions and Savingschemes in the shape of act/ ordinance/ regulations/uidelines/ circulars, is clearly underscored by the fact that the

Occupational Pensions and Savings Schemes industry isworth Rs. 242 billion in size as on June 30, 2007. It is somportant now to properly regulate this industry as these areunds rich in size and can be so helpful for the economy, ifroperly regulated. Thus, the need for suitable andomprehensive legislation is felt to address/ entail the areaske: the need, to separate the assets of the schemes from theponsors; to fund the unfunded/ partially funded definedenefit schemes; to move ahead for regular actuarialaluations as per IASs/ IFRSs; to provide an environment

where entities are able to pay the promised benefits.

Amendments made in SECP Act, 1997:An amendment inECP Act has been made vide finance act 2008 as per whichECP can now regulate the Occupational Pensions andavings Schemes in the private sector and governmentwned corporations. The important areas which led to thisevelopment were: as per the prevailing regulatorynvironment, SECP can not regulate the retirement benefitusts; the industry has repeatedly requested SECP toontemplate the regulation of Occupational Pensions andavings Schemes; the size of Occupational Pensions andavings Schemes industry is big warranting a closer

monitoring; the international best practices require the

Type of benefit Rs (bn) % No. of employees %

Provident fund 139 57.44% 267,301 43.94%

Gratuity 91 37.60% 211,988 34.85%

Pension 12 4.96% 128,997 21.21%

Totalemployees 242 100.00% 608,286 100.00%

able A: Fund size and Number of Employees

Employee benefits MixNo. of

employers%age

With pension, provident fund and gratuity schemes 41 12.73%

With pension and provident fund schemes 10 3.11%

With pension schemes only - -

With pension and gratu ity schemes 1 0.31%

With provident fund and gratuity schemes 88 27.33%

With provident fund schemes only 74 22.98%

With gra tuity schemes only 108 33.54%

Total 322 100.00%

Total employers without employee benefits 33

Total employers in survey 355

able B: Number of employers offering none to all of Pension,rovident Fund and Gratuity

Type of a ssetProvident Fund

(Rs. Bn)Gratuity(Rs. Bn)

Pension(Rs. Bn)

Total(Rs.bn)

% assets

National SavingsScheme 43.94 5.95 81.8 131.69 54.42%

PIBs/Treasury

Bills 4.59 1.11 8.48 14.18 5.86%Equity Securities 15.6 0.39 21.45 37.44 15.47%

Mutual Funds 9.85 1.41 5.45 16.71 6.90%

Corporate Bonds- TFCs 4.88 0.58 4.59 10.05 4.15%

Bank Deposits &

Other Assets 13.12 2.53 16.28 31.93 13.19%

Total 91.98 11.97 138.05 242 100.00%

able C: Investment structure of Provident Fund, Gratuity and

ensions


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Annual 2008

Winter Edition

eparate fund for its small number of employees.

lA pervasive regulatory environment: Other importantareas the sought regulatory structure shall contain, include,he requirement as to annual returns of trusts; data collection

and publication requirements; guidelines for investmentmanagers; procedure for complaints/ solicitors/nvestigations/ winding up etc.

While steady and careful work is under way to successfullyake SECP towards the sought after regulation of

Occupational Pensions and Savings Schemes, the ventures seen as on opportunity where the viability of developingnkages between the Voluntary Pension System and the

Occupational Pensions and Savings Schemes can also be

explored. Moreover, once stringent Occupational Pensionsand Savings Schemes system, in the shape of laws/regulations/ guidelines nurtured with caring and curingfeatures mentioned above, takes effect, it is hoped that it shalllead to an aptly-articulated regulatory system for retirementbenefit arrangements, where the system shall have amplepotential to mature fast. While it shall guarantee the protectionto the employees, it shall also guard against and discouragepoor governance and any fraudulent/ fragile practices. At theend of the day, it is economy which shall benefit as moredocumented funds and under rigorous supervision wouldmean a higher level investment - the latter being the keydeterminant of economic growth which shall also imply morevibrant capital markets. Thus, employers, employees,investment and economy shall all benefit as this strategicinitiative is steadily seen through.

Knowledge Management is the hottest area of the day. Leadingrganizations around the world have realized the importance ofknow what they know and be able to make maximum use of it.

Knowledge within an organization usually resides in manyifferent places such as databases, knowledge bases, files andeople's heads etc. This knowledge is extremely important toring effectiveness as well as efficiency in working of therganizations, but problem is that it remains distributed andnavailable as a shared resource due to all the functions of therganization.

Most progressive and forward looking organizations are nowhinking in terms of;

lWhat their knowledge assets arelHow to manage and utilize these assets to get maximum

return

Knowledge management is not a one time process as it is notnly about managing the knowledge assets of an organizationut also managing the process that acts upon it. The processan be defined as a cycle consisting of: developing knowledge,reserving knowledge, using knowledge and sharing itffectively among the stakeholders for its reuse and valueddition. We can define knowledge management as a businessctivity with two aspects;

. Treating the knowledge component of business activities as

n explicit concern reflected in the strategy, policy and practicest all levels of the organization.

. Making a direct connection between an organization'sntellectual assets - both explicit and tacit - and positive results.

n practice knowledge management often encompassesdentification and mapping intellectual assets already existingwithin an organization, generating new knowledge on regularasis, making a vast amount of corporate informationccessible, sharing best practices and technology that enables- including groupware and internet portals.

Although the benefits and goodies associated with knowledgemanagement are beyond any shadow of doubt and

rganizations who have taken initiative are already reaping its

unprecedented fruits, it is usually a very difficult task to beginwith. Major pitfalls can be classified as being the mindset ofpeople; tendency to hold on and not share knowledge, lack ofunderstanding on the life cycle and unavailability of adequatetechnical capacity within the organization to build variousknowledge management tools.

IS & T division has been taking many bold initiative since itsperception to fulfill the dream of making the Commission a trulymodern effective, and efficient organization. On such initiativewas to develop intranet sites for IS & T, HR and Law departmentalmost three to four years back. These intranet sites contain allthe knowledge (explicit) and functional information like polices,procedures, guidelines, SOPs and service request forms etc.Individual departments have been greatly facilitated by these

knowledge portals but their access by others who probably needthese the most has been fairly limited.

Keeping this realization in view, IS & T division embarked upon afascinating and out of the box idea of building a knowledgemanagement portal for the Commission namely SEC - Todayaccessible to everyone at the Commission. All the intranetsalready developed have also been linked to this portal alongwith all other systems for internal use. The SEC Today is first oneof its kind in the country that has many dynamic componentsand separate spots for HR, Admin and Finance with a lot ofshared resources. SEC Today has a regularly updated bulletinboard for important news and announcements and variousother interesting sections for information on recent andupcoming trainings, list of newly joining colleagues, promotions

and birthdays etc. Users can submit articles and pictures toshare with their colleagues.

In future we are planning to create a section for submittingreports by colleagues coming back from local and foreigntrainings to share their experience and recommendations etc. Adiscussion forum will also be provided for a healthy exchange ofideas related to work, draft laws, trainings etc.

Recently professors of a reputed university visited theCommission after they came to know about SEC Today conceptand were thrilled to see it live. They have expressed their desireto do a case study on this with their PhD candidates forknowledge management. I feel it is really a moment to rejoice foreveryone at the Commission.

Knowledge Management throughSEC TODAY

Knowledge Management throughSEC TODAY

by Arshad Javed Minhas



erformance Appraisal when viewed from a broaderperspective can effectively be utilized for enhancingPorganizational efficiency and correcting the

ndividuals' current behaviour in their job performance aswell as providing directions for their future careerevelopment. Also, it serves as

basic tool for determiningpay/compensation package.Precisely, all these ultimatelyontribute towards betterment ofhe organization and boost its

rowth.

W h a t e v e r b e t h emethod/technique adopted tom e a s u r e a n e m p l o y e e ' sperformance be it peer review,management by objectives, bellurve or 360 degree feedback,

e a c h p r o c e s s r e q u i r e sonscientious planning startingrom its lay-out, implementation,

m o n i t o r i n g a n d t h e nafeguarding; with honesty and

airness in the system. A slightlip can defeat the entire ideabehind it. In simple words, aper fo rmance management

ystem should reflect thato mp e n sa t i o n / r e w a rd f o r

performances are based onairness and merit.

rrespective of the process thatmay be fo l lowed by HRmanagers, some forethoughtshat are of salience before

mplementing a Performance Management System, are thathe system should be devised so that all organizational

activities converge towards working on common goals whichprovide constructive feedback, and focuses on enhancingorganizational efficiency.

t is important to adopt a structured approach for having inplace an effective performance management system; whichaims to link and transform business plans and objectives intoorporate success.

One of the most debatable systems of appraisal is the BellCurve method. A bell curve is a graphical representation

mostly used by statistician, psychologists, and HR mangersetc. illustrating normal probability distribution. To draw sucha curve, one needs to specify two parameters, the mean andhe standard deviation. The trend followed by HR managersor managing performance through Bell Curve system is toeparate high performers from the general population i.e.

average and below average performers.

Whilst facing tough business competition companies areompelled to adopt a forced ranking system (known as bellurve) in order to do prune the human inventory of marginal

performers and retain only the better ones. Although, forcedanking has proven effective in eliminating poor performers,

rewarding the performer who deserve, and increasingorganizational efficiency, the system has its flaws which willbe touched on the following paragraphs.

When applying the forced ranking approach, managers needto exercise extreme caution thatthe issue of discrimination doesnot arise. Whilst majority of theemployees are placed within theaverage performers category,e va lu a t i o n o f e mp lo ye e s '

performance becomes relative instead of laying emphasis on actualp e r f o r m a n c e . B y r a t i n gemployees' performance incomparison with each other, thesystem does not present the actualpicture rather evaluations inrelative terms are artificiallyconducted. Even though anumber of employees might besatisfactory or good performer thisartificially deflated rating willdischarge them as poor performer

which may provide ground to theemployers to target thoseemployees who it does not wish toretain anymore. Whilst seeminglythe intent of the bell curve methodis to weed out poor performers theground reality which managersmight face is that replacementsare hard to find; organizations arecompelled to retain below averageperformers but have experience inhandling their job; hence cannotreplace them due to scarcity of

skilled workforce.

Before implementing the method of Bell Curve forperformance evaluation, managers need to understand itsbasics and the effects of its dynamics that either synergizesinto enhanced productivity or reacts disastrously.

Generally performance under the bell curve method ofevaluation is distributed; employees are categorized or ratednormally into 3 groups i.e. a small number say 10% is labeledas outstanding performers, a large majority (say) 80% areput under average/good performers and the remaining 10%as those displaying poor/unsatisfactory performance. The

employees who are high grade performers are rewardedsubstantially (promotions, bonus, salary raise, etc.), theaverage performers too receive some rewards but thoseidentified as poor/satisfactory performers are the ones introuble. It all depends on the employers as to how he wouldtreat the lot classified as poor performers. Sometimes thesepoor performers are given a chance to improve or are laid-off.

Whatever may be the fate, the end result is that employees'morale is shaken. There is an air of resentment amongstthem that despite their best efforts they have not beenrewarded equitably and the worst syndrome they can gothrough is fear of job insecurity. Whilst those left behind are

closely monitored; they live in constant anxiety and enduring

Performance ManagementSystem

Bell-Curveby Shane Coelho


11/24



Vision. Our readers would like to know about yourducation, career and social activities.

DrMAH.I graduated in Physics and Mathematics from theniversity of Punjab securing first position in the Rawalpindiivision, followed by Masters in Applied Mathematics from

Quaid-e-Azam University, Islamabad. I was awarded theQuaid-e-Azam merit scholarship and earned my Doctoraten Risk Theory from the University of Essex, UK.

commenced my career

n 1977 by jo in inga t iona l Insu ranceompany Ltd. Then, in980 moved on to theakistan Branch of onef U K ' s l e a d i n g

omposite insurers i.e.Royal & SunAlliance.

ince, 1987 I held theosition of this Group'sountry manager forakistan, and following atrategic decision, the

ranch withdrew fromakistan in 2004.

learnt about corporateocial responsibility roleu r i n g m y p a s tm p l o y m e n t w h i c h

nfluenced me and so Itarted honorary works athe Cancer Society.Activities of this Societyma in ly focuses on

reat ing awareness

mongst people about cancer, and extending financial

assistance to poor cancer patients visitingthe Jinnah Post Graduate Medical Centre,Karachi (JPMC).

Previously, JPMC's Cancer Ward had beenfunctional in a barrack, which wasconstructed during the World War II, and itwas in a highly dilapidated condition.

Instead of renovating this building, theCancer Society took up the herculean task

of constructing a new ward and I have theprivilege of spearheading the project to itscompletion. The covered area of this projectis 45,000sqft and the ward Alhamdollilah,would be opening, shortly. The facilitiesinclude OPD section which would be able tohandle 250 patients daily and has capacityof 100 beds for inpatient treatment.

Despite being an important segment of thefinancial sector, my personal view is that the insuranceindustry did not receive the attention it deserved towards itsdevelopment. Further, the private sector was fragmentedand suffered from operational inefficiencies, lack ofprofessionalism and poor ethical standards. As mycompany was withdrawing from Pakistan, I decided that

be fore reach ingsuperannuation age,

it was time to giveback. Though, I waso f f e r e d b y m yprevious employera n o v e r s e a sassignment, I tookthe challenge tow o r k f o r t h ebetterment of ourinsurance industry,a n d j o i n e d t h eC o m m i s s i o n i nFebruary 2005.

E q u i p p e d w i t hstrong theoreticalbackground andextensive practicale x p e r i e n c e o f w o r k i n g a t t h emanagement level ina m u l t i n a t i o n a linsurance company,I thought I couldmake positive andmaterial contribution

to better the industry.

Vision. What was the factor behindyour decision to join the publicsector organization after havingserved the private sector for overtwo decades?

DrMAH.

An Interviewwith

Advisor Insurance

Maria BostanJunior Executive

Islamabad

Vision: How do you feel working in SECP?

Vision: What is the inspirational factor that binds you tocontinue working in SECP?

My past ten months in the Commission have been exhilarating interms of learning and exposure. I look forward to making positivecontributions to HR & Training Division and to the Commission in

future.

The biggest inspiration is my team. Everyone has been extremely

encouraging. Together, we are exploring possibilities, learning fromour mistakes and striving to make SECP an employer of choice.

Dr. Mumtaz Ahmed Hashmi


13/2413


Annual 2008

Winter Edition

Vision. Please throw some light on SECP's role inhe development of insurance industry inakistan.

r MAH.

Vision. What steps are being taken for therotection of insurance policyholders' interest?

r MAH.

Vision. SECP has recently introduced the concept

f Islamic Insurance i.e. Takaful. What is theifference between Insurance and Takaful?

r MAH.

Vision. What is Motorhird Party Insurance

Cover? Has there beenny progress towardsmplementing thisroposal?

r MAH.

The Commission has a strategic priority andommitment to strengthen and maintain an effectiveegulatory environment in which insurance and takafulusiness can flourish. In this regard, the Commission's role

n the last few years has been significant.

Protection of policyholders' interest is directlyependent on financial soundness and quality reinsuranceupport of the insurance and takaful companies. In thisespect, capital requirements have been substantiallynhanced. Further, stringent requirements as to the ratingnd limiting participation levels of the reinsurers have been

ntroduced. Furthermore, statutory deposits requirementsave been enforced in letter and spirit.

The fundamental difference between conventionalnsurance and takaful is that the former involves transferringf a risk from an individual to the insurance company and in

he latter case, individuals (participants) share theirespective risk-exposures amongst themselves byuaranteeing each other.

n order to meet theopular needs of theakistanis in managing

heir risk-exposures in ahariah compliant manner,

he Takaful Rules wereotified in September0 0 5 . To a d d re ssumerous practical issues

which have been identifiednce then, the Rules areeing reviewed to bringb o u t n e c e s s a r y

mendments/modification.o far, 5 takaful operators

2 family and 3 general)ave been issued licenceso undertake takafu lusiness.

It is mandatory under the motor vehicles laws for aehicle owner to have compulsory motor third party

insurance cover, obtained from any of the registered insurer, inrespect of any legal liability for bodily injury which may becaused by his vehicle to any third party. Compulsoryinsurance cover requirement in respect of private vehicle isunlimited, and for commercial vehicle it is Rs.20,000.

Alarmingly, almost 90 percent of the vehicles plying on theroads in Pakistan either are without the required cover or haveinsurance cover issued by unauthorized entities.

Whilst substantial premium income to the genuinely

registered insurers is being lost each year, the tragic aspect ofthis illegal activity is that the road accident victims and theirfamilies are deprived of the compensation. In this regard, theCommission, in consultation with Insurance Association ofPakistan, developed a comprehensive proposal which afterapproval of the Ministry of Finance has not only beenconveyed to the provincial governments but also is beingpursued by the Commission, for its implementation.

Pakistan Insurance Institute was established in 1951

to promote educational and knowledge sharing activities inthe field of insurance. After affiliation with the CharteredInsurance Institute, London, in 1953, it has regularlybeen conduct ing associateship/ fe l lowshipexaminations. Apart from offering certificate/diplomaprogrammes, it has been organizing workshops andseminars on various topics relating to insurance.

To better theI n s t i t u t e ' scontribution in

i m p a r t i n gknowledge andt r a i n i n g i ninsurance andt a k a f u l , t h eC o m m i s s i o nc o n t r i b u t e dt o w a r d s i t sconversion into as e l f - r e l i a n tdegree awardingc e n t r e o f

academic andp r o f e s s i o n a lexce l lence ininsurance, takafula n d r e l a t e dtopics.

Vision. What is the role of Pakistan InsuranceInstitute?

Dr MAH.

Vision. Fromy o u re x p e r i e n c e ,w h a t

suggestions would you give to the young

professionals working in the public and private

Mubashar HassanDeputy Director

Islamabad



It has been indeed a great learning experience working with SECP.HR & Training Division provided me the opportunity of coming across

more people. It is pleasant as well as challenging to deal withdifferent type of people having different backgrounds & mindsets.

The inspirational factor is opportunitiesof personal career growth in a changing culture of SECP. I havewitnessed very positive change in culture since my joining SECPback in late 2003. Acknowledgement of individual performance &

potential through career progression and appropriate compensationmechanism are prominent factors of my continued association with

SECP.



ector to gain success in their fields?

Dr MAH. There is no match to the wealth of knowledgene may possess. There are various reasons for poorublic image and perception of working in the insurance

ndustry and one of the key factors is lack of educated andualified professionals in the field.

To me insurance profession is service to humanity andaccordingly my message to those who are working in theindustry is to strive towards learning and acquiringprofessional qualifications in the field of insurance. Also,focus on the revitalization of the Institute would go a long wayin providing the industry with qualified young graduates. Suchefforts would lead to more quality persons working for theindustry which means availability of quality service to theconsumers and thus improved perception and image of theindustry.

Corporate Wisdom

akota tribal wisdom says that when you discover you are riding aead horse, the best strategy is to dismount. However, in businesse often try other strategies with dead horses, including thellowing:Buy a stronger whipChange ridersSaying things like "This is the way we always have ridden this

orse.

Appointing a committee to study the horse.Arranging to visit other sites to see how they ride dead horsesIncreasing the standards to ride dead horsesAppointing a tiger team to revive the dead horseCreating a training session to increase our riding abilityComparing the state of dead horses in today's environment

0. Change the requirements declaring that "the horse is not dead". Hire a contractor to ride the dead horse

2. Harnessing several dead horses together for increased speed3. Declaring that "No horse is dead, to dead to beat."4. Providing additional funding to increase the horse'serformance5. Do a case study to see if contractors can ride it cheaper6. Purchase a product that makes dead horses run faster7. Declare the horse is "better, faster, and cheaper" dead

8. Form a quality circle to find uses for dead horses9. Revisit the performance requirements for horses0. Say "This horse was procured with cost as an independentariable"1. Promote the dead horse to a supervisory position2. Give the dead horse early retirement and rehire him as aonsultant3. Build a wagon to carry the dead horse and rider4. Transfer the dead horse to a job in which movement is notquired

5. Transfer the dead horse to a location where no one will noticee is dead6. Transfer the dead horse to personnel department7. Assign, ambitious subordinate the dead horse and then yell at

e sub for lack of progress8. Assign the dead horse to lead a project that should not be done9. Give the dead horse to someone who has a lot of horsesecause he will not notice his condition0. Assign the dead horse a temporary replacement until hisondition improves1. Tie the dead horse to your best horse so that you have twoverage horses2. Loan the dead horse to a co-worker and tell the them that heas OK the last time you rode him.3. Assign the dead horse to the backup team4. Have the dead horse declared a historical land mark and makea public attraction5. Donate the dead horse to a local college so that they can teachow to ride a dead horse.

Prison Life Vs Full-Time Job

In prison you spend the majority of your time in an 8' X 10' cell.At work you spend the majority of your time in a 6' X 8' cubicle.

In prison you get three meals a day.At work you only get a break for one meal and you have to pay forthat one.

In prison you get time off for good behavior.

At work you get rewarded for good behavior with more work.

At work you must carry around a security card and unlock and openall the doors yourself.In prison a guard locks and unlocks all the doors for you.

In prison you can watch TV and play games.At work you get fired for watching TV and playing games.

In prison they ball-and-chain you when you go somewhere.At work you are just ball-and-chained.

In prison you get your own loo.At work you have to share.

In prison they allow your family and friends to visit.At work you cannot even speak to your family and friends.

In prison all expenses are paid by taxpayers, with no work required.At work you get to pay all the expenses to go to work and then theydeduct taxes from your salary to pay for the prisoners.

In prison you spend most of your life looking through bars from theinside wanting to get out.

At work you spend most of your time wanting to get out and insidebars.

In prison you can join many programs which you can leave at any

time.At work there are some programs you can never get out of.

In prison there are wardens who are oftensadistic.

At work we have managers.

Humor


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Annual 2008

Winter Edition

Younas Ali Khan

Support ExecutivePeshawar



I feel very good and enjoying working in SECP. Particularly, I amgaining confidence to deal with people.

I am getting a decent salary as compared to my other colleaguesworking in other organizations due to which I can manage my

expenses in a very good manner. I am also availing the medical

facilities offered by SECP.I am enjoying life due to being a part of SECP.

Understanding a Pisces

f Pisces have one outstanding quality it is their belief in thenvisible, spiritual and psychic side of things. This side ofhings is as real to them as the hard earth beneath theireet- so real, in fact, that they will often i g n o r e t h eisible, tangible aspects ofeality in order to focus on then v i s i b l e a n d s o - c a l l e dntangible ones.

Of all the sign of the Zodiac,he intuitive and emotionalaculties of the Pisces are the

most highly developed. Theyare committed to living by theirntuition and this can at times benfuriating to other people-especially those who arematerially, scientifically, orechnical oriented. If you thinkhat money or status or worldlyuccess are the only goals infe, then you will never

nderstand a Pisces.

Pisces have intellect, but tohem intellect is only a means by which they can rationalize

what they know intuitively. To an Aquarius or Gemini thentellect is a tool with which to gain knowledge. To a welleveloped Pisces it is a tool by which to express knowledge.

Pisces feel like fish in an infinite ocean of thought and feeling.This ocean has many depths, currents and undercurrents.They long for purerw a t e r s w h e r e t h e

enizens are good, true

and beautiful, but theyare sometime pulled tohe lower , murk ie r epths. Pisces know that

hey do not generatehoughts but only tunen to though ts tha t

already exists; this iswhy they seek the purerwaters. This ability tou n e i n t o h i g h e r houghts inspires them

artistically and musically.

Since Pisces is sopiritually orientated hough many Pisces inhe corporate world mayide this fact we willeal with this aspect inrea te r de ta i l , f o r

otherwise it is difficult tonderstand the true

Pisces personality.

There are four basic

attitudes of the spirit.

One is outright scepticism the attitude of secularhumanists. The second is an intellectual or emotional belief,where one worships a far-distant God figure- the attitude ofmost modern church going people. The third is not only beliefbut direct personal spiritual experience- this is the attitude ofsome, born-again' religious people. The fourth is actual unity

with the divinity, anintermingling with thespiritual world- this is theattitude of yoga. Thisfourth attitude is the

deepest urge of a Pisces,and a Pisces is uniquelyqualified to pursue andperform this work.C o n s c i o u s l y o r unconsciously, Piscesseek this union with thespiritual world. The beliefin the greater realitymakes P isces ve ryt o l e r a n t a n dunderstanding of others-

p e r h a p s e v e n t o oto le ran t . There areinstances in their lives

when they should say 'enough is enough' and be ready todefend their position and put up a fight. However, because oftheir qualities it takes a good deal of doing to get them intothat frame of mind.

Pisces basically want and aspire to be 'saints'. They do say intheir own way and according to their own rules. Others

should not try toi m p o s e t h e i r concept of stainless

o n a P i s c e s ,because he or shealways tries to find itfor him or herself.

Major TrendsEvery Pisces, at thecore, has a longingfor sainthood. Now,not every Pisces is asaint- far from it. Butthis is what theywant in their heart of

hearts. If they areinstructed in ther igh t ways andmeans to achievethis, they will go far.But if not, theseu r g e s c a n b es u b v e r t e d i n t oalcoholism or drugaddiction, or anyo t h e r t y p e o f addition. Behind allthese addictions are

Personality Profile - Pisces at a Glance | Element- water| Ruling Planet-Neptune | Career Planet-Pluto | Love

Planet-Mercury | Money Planet-Mars | Planet of health andwork- sun | Planet of Home and Family life- Mercury | Planet

of love affairs, creativity and children-moon | Colours Aqua, blue, green| Colour s that promote love, romance and social harmony earth tones,

yellow, yellow-orange | Colours that promote earning power-red, scarlet | Gem-White diamond | Metal-tin | Scent-lotus | Quality-mutable (=flexibility) | Qualities

most needed for balance-structure and the ability to handle form | Strongestvirtues- Psychic power, sensitive, self sacrifice, altruism | Deepest needs-spiritual

illumination, liberationCharacteristics to avoid-escapism, keeping bad company, negative moods | Signs

of greatest overall compatibility-cancer, Scorpio | Signs of greatest overallincompatibility-Gemini, Virgo, Sagittarius | Sign most helpful to career- Sagittarius |

Sign most helpful for emotional support- Gemini | Sign most helpful financially-Aries | Sign best for marriage and /or partnerships- Virgo | Sign most helpful forcreative projects-cancer | Best sign to have fun with-cancer | Sign most helpful in

spiritual matters-Scorpio, Aquarius | Best day of the week-Thursday

PISCESThe Fish, Birthdays from 19th February to 20th March



Suhail Farooq

Senior Support ExecutivePeshawar



I am proud to be an employee of the Commission because of itsexcellent work environment.

The assignment/job/duties assigned to me, friendly environment withofficers and colleagues, and the salary package as compared with

market are some of the factors that bind me to SECP.

he urge for a spiritual life a supernatural kind of life. This isalways important to Pisces, and has become more importantn recent years. This year -2009- it becomes even moremportant: 2009 is a year for spiritual peak experiences.More on this later.

Finance was not a big issue last years, nor is it very importantn the year a head.

Career was very important for many years, but as Pluto leftour 10th house last year, these urges are waning. You seemated with the career progress you've already made andeady to move on.

Friendships, organizations and group activities were verymportant last year and the trend continues in the yearahead. Now that Pluto is in your 11th house of friends, therewill be a long term detox in this area of life. Many friendshipswill die and perhaps get reborn, or be replaced with new andbetter friendships.

The past two years have been very difficult on the romanticfront. Marriages were severely tested. Many of them did notsurvive. And this testing continues in the year ahead (untilOctober 29)With Uranus in your own sign for the past five or six years,you have been a restless creature. You wanted to exploreyour personal freedom, be free of all obligations. Probablyyou still have obligations, but you have been freer in recentyears. This trend continues in the year ahead. You wantchange and you are getting it.

Your most important areas of interest this year are love andromance (until October 29); sex, birth, and death, debtpsychology, personal transformation and reinvention; friendsorganizations and group activities; spirituality.Your pays of the greatest fulfillment in the year ahead arespirituality; friends, group activities and organizations (afterJuly 27)

Diabetes camp was organized for employees andheir families on November 11, 2008 with referenceo World Diabetic Day.

T h e A v e n t i sP h a r m a c e u t i c a l

arranged this camp. Twoepresentatives, YounasKhan and Kamran Kazirom Aventis conducted. More than 150 people

were tested for bloodugar, out of them nearly

25% were found witheranged levels.

M r . K a m r a n K a z ielivered a lecture

egarding awareness of

iabetes, importance ofhecking blood sugar,fe style changes ando m p l i c a t i o n s o f ncon t ro l led suga r

evels.

Abbott company alsojoined this camp andave five glucometer

a n d o n e p a c k o f lucosticks with eachlucometer.

The glucometerswere given to the

d e s e r v i n gemployees w i thmore than onediabetic patient infamilies.

Representa t ivesfrom Abbott alsocame and explainedthe method of usingglucometer and alsoc l a r i f i e d t h ec o n f u s i o n s

regarding differentresults on differentglucometers.

Aventis and Abbottalso offered speciald i s c o u n t e dp a c k a g e s o nm e d i c i n e s f o r diabetes and otherdiseases for SECPemployees and theirfamilies.

Health Care ProgramFree Medical Campor Diabetes

Employees of SECP at the Medical Camp

y Dr. Rubina Tahir


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Annual 2008

Winter Edition

Good People distinguish things in terms ofc a t e g o r i e s a n dgroups.

Confucius said, Three kindsof friends are beneficial, andhree are harmful. Whenriends are honest, sincere,

or knowledgeable, they arebeneficial. When friends are

pretentious, fawning, oropportunist ic, they arearmful.

Confucius believes thathose who are born knowing

are best; those who know byearning are next. Those whotudy only when they come to

an impasse rank after that.Those who do not study evenwhen at an impasse areonsidered lowest of the

people and those who haveirtue have something to say,b u t t h o s e w h o h a v eomething to say do notecessarily have virtue.

H u m a n i t a r i a n s a r eo u r a g e o u s , b u t t h eo u r a g e o u s a r e n o tecessarily humane.

There are cultivated peoplewho are not humane, buthere are no petty people who

are humane.

G o o d P e o p l e a r eparsimonious with power andavoid trouble; they are notsusceptible to materialnducements.

Confucius said, Exemplary peopleoncern themselves with virtue, small

people concern themselves witherritory. The ruling class thinks of

punishment, the lower classes peopleope for benevolence.

Good people distinguishabove and below and settlehe ambitions of the people

A pupil asked Confucius, If one is poorbut does not curry favor, or is rich butot haughty, how would that be?

Confucius said, Fine, but not as goodas one who is poor but takes pleasure

in the Way, or one who is rich but still courteous. and E x e m p l a r y p e o p l eunderstand matters of

just ice; small peopleunderstand matters ofprofit.

Good people refinecultured qualities.

Confucius said to Zichan, afamous prime minister ofthe state of Zheng, Theway of exemplary people isf o u r f o l d . T h e y a r edeferential in their ownconduct, respectful in theirservice of employers,generous in taking care ofp e o p le , a n d j u s t i nemploying people,

Confucius said, When one

has more substance thanculture, one is a rustic;when one has more culturethan substance, one is aliteratus. Only when onehas both substance andculture is one an exemplaryperson.Confucius went into thegreat national shrine andasked about everything.Someone remarked, Whosays that old man knows

the classical rites? Whenhe goes to the great shrine

he asks about everything.Hearing of this, Confucius said, Thisis part of the ritual.Confucius was warm yet strict, sternbut not fierce, respectful yet at ease.

Confucius said, To be respectfulwithout manners is tiresome. To becircumspect without manners istimidity. To be brave without mannersis wildness. To be straightforward

without manners is strangling. andIf you study culture widely and sum itup in an orderly way of life, you maythereby avoid being uncivilized,

Someone asked Confucius abouthumaneness.Confucius replied, Be respectful athome, serious at work, faithful inhuman relations. Even if you go touncivilized areas, these virtues arenot to be abandoned.

Confucius

Good People areparsimonious withpower and avoid

trouble; they are notsusceptible to material

inducements.

Good peopledistinguish above andbelow and settle the

ambitions of thepeople.

Good people refinecultured qualities.



Shamsher Khan, Sr. Executive Secretary, January 1Azhar Hussain, Sr. Executive Secretary, January 1

Abdul Ghaffar, Executive Officer, January 1Aftab Ahmed, Executive Officer, January 1

Saeed Akhtar, Sr. Support Executive, January 1Allah Warayo Ujjan, Assistant Support Executive, January 1

Hafeezullah, Office Attendant, January 1Pir Zaman Shah, Office Attendant, January 1Uzma Farogh, Assistant Director, January 1

Yousuf Masih, Office Attendant, January 1Zahid Hussain, System Administration, January 1Imran Hussain Minhas, Joint Director, January 1

Amanullah Khan, Driver, January 1Sumera Noureen, Junior Executive, January 1

Amjad Iqbal, Assistant Director, January 1

Muhammad Rashid, Sr. Executive Secretary, January 2Muhammad Ilyas, Executive Officer, January 2

Waheed Ahmed, Sr. Support Executive, January 2Hussain Sorosh, Junior Executive, January 3

Zahur Ahmad, Joint Registrar, January 4Muhammad Altaf Khan, Support Executive, January 4

Shah Hussain, Support Executive, January 5Nauman Khan, Deputy Registrar, January 5Mukhtar Ahmed, Office Attendant, January 6

Hafiz M. Wajid Wahidi, Junior Executive, January 6Muhammad Badruddin Raza, Sr. Support Executive, January 7

Shoukat Ali Khaskheli, Support Executive, January 8Umar Hayat Khan, Director, January 8

Naveed Farooq, Assistant Director, January 8Muhammad Riaz, Sr. Executive Secretary, January 9

Najia Karim Bokhari, Assistant Software Engineer, January 9Muhammad Raza Ali Khan, Quality Assurance Analyst, January 10

Ch. Muhammad Aslam, Office Attendant, January 10

Birthdays

closes above 100 for the first time, in the run-up to thepanic of 1907.

January 13, 1404 The English parliament passes the Act of

Multipliers, which prohibits alchemy (turning basemetals into gold) despite the fact that no one eversucceeded at it.

January 14, 2000 The Dow Jones Industrial Average hits itsall-time peak: 11,722.92.

January 15, 1609 History's first regular newspaper, AvisoRelation oder Zeitung, begins publication atWolfenbuttel in Lower Saxony under the leadership ofJulius Adolph von Sohne.

January 17, 1949 The first Volkswagen Beetle arrives in theUnited States from Germany.

January 18, 1854 The first person ever to receive atelephone call Thomas A.Watson, who was

Alexander Graham Bell's assistant and later becamean important shop builder is borne in Salem,Massachusetts.

January 31, 1893 The Coca-Cola trademark for "nutrient ortonic beverages" is registered. The now-famousflowing script of the trademark was that of FrankRobinson, the accountant for John Styth Pembertonwho first blended the elixir in 1886 in a three-leggediron pot in his backyard. Robinson also thought up thename.

anuary, 1899 The word "automobile" is used for the firsttime, in a New York Times editorial.

anuary 6, 1838 Samuel F. B. Morse publicly

demonstrated his electric telegraph for the firsttime, over three miles of wire strung around theSpeedwell Iron Work in Morristown, New Jersey.

anuary 7, 1830 A passenger pays for a railroad ticket forthe first time in American history. The cost was 9to ride in a horse-drawn carriage on tracksbetween Part Street and Carrollton Viaduct inBaltimore, Maryland.

2000 A record for the biggest daily tradingvolume in one company is set when 136,846,600shares of Lucent Technologies are traded on theNew York Stock Exchange.

anuary 8, 1825 Inventor of the cotton gin, Eli WhitneyDies at 59 in New Haven, Connecticut.1987 the Dow Jones Industrial Avenge closesabove 2,000 for the first time.

January 10, 1860 History's first major factory accidentoccurs: 77 perish when a textile factory collapsesin Lawrence, Massachusetts.

January 11, 1759 The first life insurance company inAmerica is incorporated in Philadelphia.

January 12, 1906 The Dow Jones Industrial Average

Januaryin the history of Business

Syed Fayyaz Mahmud, Director, January 11Zeeshan Nawaz, Assistant Director, January 11

Rizwan Saeed Dar, Assistant Director, January 12Jehanzeb Khan, Assistant Registrar, January 13

Muddassir Navid Khan, Sr. Support Executive, January 13Muhammad Azim, Assistant Director, January 14Atif Ejaz Ahmed, Assistant Director, January 14

Muhammad Farooq Azam, Sr. Executive Secretary, January 15Mohammad Jawaid, Sr. Executive Secretary, January 15

Mehmood Akhtar, Driver, January 15Abdul Khalil, Office Attendant, January 15Riaz Ahmed, Office Attendant, January 15

Zeeshan R. Khattak, Deputy Director, January 15Haris Jahangir, Support Executive, January 16

Osama Ahmed Osmani, Assistant Director, January 16

Natasha Jehangir Khan, Deputy Director, January 18Sumera Baloch, Deputy Registrar, January 18

Syed Mustafa Haider, Assistant Director, January 18Saqib Aslam, Assistant Registrar, January 18

Khalida Perveen, Deputy Director, January 19Muhammad Fayyaz, Office Attendant, January 20

Shahi Mullah, Office Attendant, January 20Ahmad Rafiq, Assistant Director, January 20

Tahir Saif ud Din, Executive Officer, January 21Fazal Muhammad, Watchman, January 21

Muhammad Hafeezullah, Accounts Officer, January 23Aqeel Ahmad Zeeshan, Deputy Director, January 23

Muhammad Shaheen, Office Attendant, January 24Shahzad Afzal Khan, Deputy Director, January 25

Suboohi Rasheed Khan, Executive Officer, January 26Zahida Rafiq, Joint Director, January 27

Sumaira Siddiqui, Joint Director, January 31


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22/24vision10The development of modern and efficient corporate sector and capitalmarket, based on sound regulatory principles, that provide impetus forhigh economic growth and foster social harmony in the Country.vision22The development of modern and efficient corporate sector and capitalmarket, based on sound regulatory principles, that provide impetus forhigh economic growth and foster social harmony in the Country.


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Volume I, Issue VIII

Documents

SECP Newsletter Annual Jan 2009