April 06, 2007	Friday	Rabi-ul-Awwal 17, 1428

ISLAMABAD, April 5: The National Assembly Standing Committee on Finance and Revenue on Thursday sought details from the Securities and Exchange Commission of Pakistan (SECP) within two weeks on its decision of absolving majority of brokers from March 2005 stock market crash that inflicted over $12bn losses on small investors.

“SECP Chairman Razi-ur-Rahman Khan has been directed to brief the special meeting of the committee on April 14 over the SECP abrupt decision of clearing 56 out of the 69 stock brokers who were served notices following the recommendation of a US-based firm’s forensic investigation report,” MNA Muhammad Laeeque Khan told Dawn following the meeting.He said the stock exchange issue was not on the agenda of the scheduled committee meeting but the abrupt decision of the SECP of clearing brokers from the scam had compelled the committee to take notice of it by summoning the chairman in the next meeting.

“The SECP bypassed the committee by announcing the decision unitarily. The commission is suppose to take the committee into confidence on the issue and then announced it,” he added.

The standing committee in the last meeting had asked the SECP for resolving the issues of stock brokers by April 10 in a special meeting of the committee. The SECP did not wait for the committee meeting and announced decision earlier.

He said that the committee would investigate the whole process from holding of hearing to appointment of lawyers. He alleged that the commission appointed those lawyers who can protect their interest.

“Even it is likely that the committee might ask for re-opening of the cases of the brokers who were cleared from the stock market crash,” the member asserted.

Another member of the committee MNA Sardar Tufail Ahmad told Dawn that the committee had asked the SECP chairman to come up with a detail report on the investigation process.

Informed source privy to the meeting said that some of the members of the committee had termed the decision of the SECP in attempt to provide protection to some big fishes of the government.

The source said the committee members had strongly criticised the government’s dramatic move on Tuesday last to absolve the stock brokers in a hurry from the biggest national scam. “The very way in which the government is dealing with such an important issue is smelling foul and shows its intentions. The government has made a joke of such an important issue,” the source said.