SECP approves several amendments in rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan’s policy board has approved several amendments proposed to the SECP Act, 1997, Public Sector Companies (Corporate Governance) Rules, 2013, NCCPL Regulations and the Pakistan Stock Exchange (PSX) Rules Book, a statement said on Tuesday.

The board, which met under its chairman Professor Khalid Mirza, gave these approvals on the recommendation of its regulations committee, it added.

The board reviewed the implementation status of the decisions given by it over the last three meetings, which included a substantial reduction in fees and removal of annual renewal of intermediary licences for the ease of doing business. It was noted the commission had not executed the instructions of the board in an expeditious manner, which is a source of concern. The board also expressed concern over the commission’s perceived excessive involvement with the law-enforcement agencies. Regarding the number of board decisions pending implementation, Mirza emphasised the need to take effective measures expeditiously in line with the policy directives. He envisioned that if the commission faithfully works alongside the board, the SECP would get transformed into an effective and market-friendly regulator, and the capital market put on a path of sustainable development within a year or so. It was; thus, hoped that within three or four years the goal of a viable capital market would be achieved.

Similarly, the oversight committee of the board gave its recommendations regarding the surveillance software of the commission, regulatory powers for imposing penalties for market malpractices without going to court, disclosure of non-compliance / misconduct by brokers, empowering the SECP to tackle issues of financial crime without having to resort to other law-enforcement agencies, and other matters, which were agreed by the board.

Mirza said that that the board is focusing on the lacklustre insurance industry, adding that it has favoured a risk-based supervision approach where high-risk insurers are treated separately from the low-risk insurers. The SECP policy board also approved the recommendations of the insurance committee regarding certain measures, including removal of sales tax provisions for facilitating insurance business. The SECP policy board, in pursuance of Section 12 of the SECP Act 1997, comprises ex-officio members of the ministries of finance, commerce, and law, State Bank of Pakistan, SECP and persons of eminence from the private sector.