SECP develops corporate score card

The Securities and Exchange Commission of Pakistan (SECP) has developed a corporate scorecard to assist local and international institutional investors in evaluating the performance of companies in specified areas against targeted benchmarks. The draft scorecard has been prepared in consultation with certain local institutional investors.

It covers the financial outlook, internal business outlook, customer perspective, innovation and learning perspective, and corporate governance perspective of a company.

The financial health of the company is primarily assessed by looking at the past financial performance of the company.

The other four Perspectives are the indicators of future performance and growth.

SECP has a progressive vision for the development of corporate sector in Pakistan.

Being the regulator of an emerging market, the SECP’s regulatory philosophy is based on the principle of developmental regulation, whereby its role is not just limited to that of a regulator but also that of a facilitator.

The scorecard with its user guide has been placed on the SECP’s website, www.secp.gov.pk for soliciting views and comments of the interested public.

Source:Business Recorder