ISLAMABAD, Sept 26: Securities and Exchange Commission of Pakistan disposed of 813 out of a total 831 complaints received from investors against brokers and companies during in July to September 2002.

Nearly 80 per cent of these complaints, Haroon Sharif, Executive Director in SEC told Dawn here on Thursday, related to the stock exchanges/brokers and the rest to the companies concerning payment of dividend, etc.

In reply to a question, he said the Commission charged no fees at all for investors’ complaints against broker/stock exchange, although the Companies Ordinance does provide for a fee of Rs500 for certain complaints against listed companies. Even this fee had been prescribed in order to discourage complaints of a frivolous nature, Sharif stressed.

As the Commission considered the investor confidence key to the development of the capital market, it has been very particular about mitigating the investors’ difficulties through a system of prompt disposal of their complaints, he said.

A Vigilance Cell, answerable directly to the SEC Chairman, was, therefore, instituted to receive and process complaints. It is the Commission’s endeavour to resolve within 30 days a complaint, depending on its nature and complexity.

During the processing of complaints at SEC, it transpired that the investors needed to be made aware of the rules and the remedies available under the SEC law.

The commission, therefore, recently published “Investors’ Guide for Lodging Complaints” that lays down the procedures and manner in which an investor can lodge a complaint. Investors can also e-mail their complaints by filling in a form provided in the SEC’s website.

Together with 40 complaints brought forward from previous years, the number of complaints pending on September 26, 2002, was 63.

Under Section 33 of the Securities and Exchange Commission of Pakistan Act, 1997, decision of the Executive Director of a Division of SEC or Registrar lies before Appellate Bench of the SEC. During the 14-month period under review, this Bench decided 72 appeals, while 18 others were pending.

To ensure speedy disposal of cases, a Complaints Monitoring System (CMS) was also introduced at the SEC during the period under review. An internal software, the CMS facilitates coordination between the Divisions and the Vigilance Cell in tracking and resolving complaints.

Officers of SEC are required to enter the progress made in disposal of their respective cases as and when a change occurs.

This helps maintain an up-to-date status of all complaints. Moreover, authorised officers of SEC can access the CMS and generate a report on weekly basis.

Of late, the number of grievances and disputes between investors, on the one hand, and brokers and companies on the other, has decreased. This was due to the introduction and strict enforcement of new laws and regulations that had created a more transparent, efficient market, the SEC executive stated.

He, however, conceded that there was still room for further improvement for a faster resolution of disputes in order to save the investors from avoidable hassle. The commission had, therefore, proposed to the government changes in the SEC Act for the establishment of a judicial forum within the SEC for disposal of appeals against decisions of the Appellate Tribunal, etc.

It seems, however, that an action on this front would depend on the priorities of a post-election government, he conceded.