SECP refutes allegations about China's regulatory body

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) Wednesday strongly refuted the allegations being made by a section of media that the officials of the Commission were involved in delaying tactics for halting the investigations of China Securities Regulatory Commission (CSRC).

The impression being created by media that CSRC is conducting investigation in Multan Metro bus project is incorrect and contrary to the facts, an SECP press release issued here said.

The SECP confirms that no team of CSRC ever visited Pakistan for investigation or taking statements of certain individuals in the matter of Multan Metro bus project.

The SECP believes that incorrect and wrong reporting in the matters involving authorities of foreign country may undermine the credibility of the national institution.

During December 2016, the CSRC approached the SECP for its assistance limited to the provision of information and certain documents, without sharing all the details of its investigations.

This is the standard modus operandi for assistance sought under the International Organization of Securities Commissions (IOSCO) cooperation protocol (MMOU).

Throughout the process, the SECP, its officers and its various departments dealt with the matter with due care, responsiveness and unequivocal objectivity to play its due role as a counterpart supportive member of IOSCO.

As such, any impression being created that the CSRC is conducting an investigation into Multan Metro bus project is incorrect and contrary to the facts, as is the accusation that the SECP has somehow withheld or delayed the process.

The fact is that the CSRC repeatedly has thanked the SECP for its support and timely help in this matter.

Accordingly, the SECP confirms that the CSRC has sought assistance from the SECP in the matter of its investigation against the Yabaite  - the Chinese company - for its disclosure violation of Chinese securities laws.

Further, the SECP cannot initiate any investigation in Pakistan unless the CSRC's ongoing investigation has established the violation, which links to companies or individuals in Pakistan.

The CSRC's investigation in the matter is still a work in process and as confirmed by the CSRC the administrative sanction proceedings in the matter are not yet complete.

The SECP has already requested the CSRC to share its investigation report.

Once SECP receives the CSRC's Investigation Report, the SECP will be in a position to assess any possible violation of the laws administered by it.

In their most recent communication they have said that the "CSRC high appreciates the SECP's assistance along the way", while in the previous communication they stated that the "CSRC is immensely grateful for the SECP's help".

The SECP further confirms that no team of CSRC ever visited Pakistan for investigations or taking statements of certain individuals in the matter of Multan Metro bus project.

Accordingly, any incorrect and wrong reporting in this matter involving authorities of a foreign country may undermine the credibility of the national institutions concerned.