Role of Securities Regulators in Investment:

Apex Regulators are those institutions which are working on the behalf of its Country's
federal government. They are making, implementing and continuously governing the rules for the
purpose of market efficiency,transparency, smoothness and to protect the investors.

These are the roles of a regulator shown Under the headings of Objectives, Regulatory functions,
Development Functions, And Protection Functions. Because every country has its own regulators so the
objective and functions ma shuffle but the role is almost same.

OBEJECTIVES:
 To protect the interest of investors and ensure safety of their investments.
 To promote the development of securities market.
 To prevent fraudulent and unfair trade practices.
 To regulate and develop a code of conduct for intermediaries such as brokers,underwriters,
merchant bankers.
 To regulate the securities market.

A regulator may have three functions:

1. REGULATORY Functions.
2. DEVELOPMENT Functions.
3. PROTECTNG Functions.

1. REGULATORY FUNCTION:
 Regulating the business in stock exchange.
 Registration and regulating the working of Stock Brokers, Sub

Brokers, Merchant Bankers, Depository participants and other intermediaries.

 Regulation of Collective Investment Schemes.

 Prohibition of Unfair Trade Practices and Insider Trading.
 Regulating substantial acquisition of shares and takeover of companies.
 Conducting Inquiries and Audits of the stock exchanges and others associated with securities
market.

2. DEVELOPMENT FUNCTIONS:
 Promote investor's education to increase participation in capital market.
 Training of intermediaries such as brokers and sub-brokers
  Conducting research and publishing market in information which are useful to all market
participants.
 Promoting self regulatory organizations

3. PROTECTIVE FUNCTIONS:
 Controlling Price Rigging : The practice of inflating the price of stocks, or enhancing their quoted
value, by a system of pretended purchases, creating an unusual demand for such stocks
 Prohibition of Insider Trading The employees or executives who have access to the strategic
information about the company, use the same for trading in the company's stocks or securities, it
is called insider trading and is highly discouraged by the Regulators
 Prohibition of fraudulent and Unfair Trade Practices
 Securities Regulators promotes fair practices and code of conduct

Powers: securities Regulators for discharge of its functions efficiently, has been vested with the
following powers

 Power of Civil Court.

 Powers to suspend trading of any security in the recognised stock exchange.
 Power to restrain persons from accessing the securities market.
 Powers to regulate or prohibit issue of prospectus, offer document or advertisement soliciting
money for issue of securities.
 To approve by-laws of stock exchanges.
 To require the stock exchange to amend their by-laws.
 Power to investigate.
 Inspect the books of accounts and call for periodical returns from recognized stock exchanges.
 Inspect the books of accounts of intermediaries.
 Power to cancel certificate.
 Power to impose penalties and adjudication.
  Power to make regulations.
 Power to prohibit the manipulative and deceptive devices, Insider trading and substantial
acquisition of securities or control.

Investor's protection:
When a issue is arise the investor can complaint the following institutions
 SECP(Apex Regulator)
 PSX
 SDRC(Small Disputes Resolution Committee)

Lodging your complaint:

If you are aggrieved, it is prudent to act promptly and lodge your complaint aa early as possible.
The regulations of stock exchanges and certain other legislations place a limit on tha time,
usually two years, within which you can lodge your complaint. After this time period elapses,
your complaint, as well as your claim, will not be considered
You may submit your complaint SECP Website.
Click on the SUBMIT YOUR COMPLAINT button available on the SECP website's home page of our
website which will lead you to the SECP online complain submission portal where you can
provide vital personal information, documents and submit your complaint.

SECP's action:

All complaints at the SECP are treated seriously and regular reporting to higher authorities takes place or
a periodic basis as per the Commission approved.

What is ethics?
The primary definition is a system of moral principles, and a secondary definition is that ethics are the
rules of conduct as used by a specific group or culture.

The proper application of ethics to investments is a highly subjective topic that can raise some difficult
questions for both investors and regulatory agencies.

The Ethical Investing:

Although the definition of ethical investing could be stated as simply purchasing investments from
issuers who act ethically, investors who seek to achieve this must first establish a set of criteria that can
be used to determine what actions and practices are considered ethical to them. For example, the Bible
and other religious books provide rules and principles for people to live by, and those who believe what
those books say use them as guides to evaluate things in the world around them. Religious texts and
other moral teachings, however, do not always provide crystal-clear guidance for practical investment
decisions.

Although creating or finding the ethical criteria to use as the basis for evaluating investments may often
be relatively simple, effectively applying that criteria to actual investment choices can be more difficult.
For instance, the Bible condemns drunkenness in several passages, but does this then make it
unconditionally wrong to purchase securities issued by makers of alcoholic beverages? Since not all
consumers of alcohol get drunk, then the investor will have to decide for him or herself whether this
investment truly supports immoral behavior. Virtually all issuers of securities or investments most likely
do something that at least a substantial percentage of their investors do not approve of (how many
investors who buy Treasury securities approve of everything that is done by the government?). Of
course, this begs the question of which practices and policies are tolerable for investors and which are
not

Ethical Issues:
Although the values and beliefs that guide ethically minded investors differ somewhat for each person,
there are several specific areas where ethics play a major role. Some of the more notable issues that
investors examine from an ethical standpoint include:

1. Winning at Someone Else's Expense

Although there will inevitably be both winners and losers in a free-market economy, the issue of how a
company wins is a concern to some. Companies that have monopolies in a market or industry can
function very efficiently in many respects, but they also effectively prevent any form of healthy business
competition, and some investors consider this to be unethical.

2. Environmental Responsibility:
Heavy industry such as energy and manufacturing have long been perceived as destroyers of nature and
wildlife with their pollution and decimation of forests, oceans, lakes and rivers. Ethical investors favor
companies that replace what they take from the earth and adhere to governmental standards for
emissions.

3. "Sin" Industries:
Although the concept of an industry being sinful is obviously somewhat subjective, a portion of the
investing public still considers makers of alcoholic beverages, tobacco companies, casinos and the
pornography industry to be taboo. The tobacco industry, for instance, has long been accused of targeting
teenagers as customers and making its products as addictive as possible in order to fuel sales. While sin
industries have made efforts to raise public awareness of the dangers of misusing their products and
services, some investors may choose to avoid companies that operate in these industries

4. Socially Conscious Investing:

Many investors who seek to avoid what they consider to be unethical investments look to vehicles such
as socially conscious mutual funds that screen companies according to specific ethically-based criteria.
Many such funds are offered by religious denominations such as the Lutheran Brotherhood, which
typically avoids investing in any of the "sin" industries listed above and can provide investors with a clear
conscience in this area

Conclusion:
Ethics are morally subjective by nature, and there is no absolute standard for what is or is not an ethical
investment. Investors must ultimately decide for themselves what they consider to be ethical and then
try to apply that to their investment choices