SECP briefs builders on corporatization and REIT registration

The Securities and Exchange Commission of Pakistan (SECP) on Wednesday told Pakistan's builders and developers that registering their businesses as companies and setting up real estate investment trusts could limit their personal liability and improve access to finance.

SECP Commissioner Muzzafar Ahmed Mirza led the regulator's delegation at an awareness session held at the head office of the Association of Builders and Developers of Pakistan (ABAD), according to a statement from the SECP. ABAD Chairman Mohammed Hassan Bakshi, Senior Vice Chairman Syed Afzal Hameed and Vice Chairman Tariq Aziz Memon attended the session.

Mirza briefed participants on reforms the SECP has introduced to simplify business incorporation and regulatory compliance, with the aim of encouraging informal firms and partnerships to adopt formal corporate structures. He said incorporation creates a separate legal entity and generally limits shareholders' liability, keeping business obligations separate from members' personal assets.

SECP officials, including Karachi Company Registration Office in-charge Sidney Custodio Pereira, demonstrated the eZfile platform and explained how digital integration with external registries has made incorporation and corporate filings faster and simpler.

The session also highlighted how corporate status can improve access to domestic and international markets while strengthening business credibility, transparency and continuity. ABAD's leadership told the SECP that its members were actively considering corporatisation and REIT registration, according to the statement. The two sides agreed to coordinate on recommendations for the real estate sector under the Companies Act, 2017.