The Securities and Exchange Commission of Pakistan (SECP) held a consultation session with the Association of Builders and Developers of Pakistan (ABAD) to deliberate on an effective regulatory framework for real estate companies that intend to invite advance deposits for real estate projects. The framework, provided under the Companies Act, 2017, has remained in abeyance and would require companies to obtain a prior SECP no-objection certificate before announcing or advertising any real estate project and to keep all public advances in an escrow account. The session discussed ground realities, practical considerations, and grey areas in the sector to shape a framework aimed at investor protection and improved transparency in project financing, including through a trustee mechanism.
Securites & Exchange Commission of Pakistan 2025-10-03
Securities and Exchange Commission of Pakistan consults builders on regulatory framework for real estate companies taking advance deposits
The Securities and Exchange Commission of Pakistan (SECP) consulted with the Association of Builders and Developers of Pakistan on a regulatory framework for real estate companies seeking advance deposits. The framework, under the Companies Act, 2017, mandates a no-objection certificate from SECP and escrow accounts for public advances. Discussions focused on investor protection, transparency, and practical sector considerations.