June 15, 2007	Friday	Jamadi-ul-Awwal 29, 1428

ISLAMABAD, June 14: The government has extended suo motu powers to Securities and Exchange Commission of Pakistan to conduct investigation of an offence and barred initiations of any proceeding against the commission or its staff.

Through the Finance Bill 2007, for extending the powers to SECP, the scope of sub-section (1) of section 29 has been amended to probe an offence not only under the SECP Act but also under any other law administered by it.

A new Section 42A has been proposed to be inserted whereby no suit, prosecution or other legal proceedings shall be instituted against the SECP and various categories of its staff including executives, members and officers for things done in good faith and intention in pursuance of this Act or any rule or regulation made thereunder.

The proposed sub-section also provides certain restrictions as a consequence of which no appeal lie against certain actions and orders of the SECP.

The bill seeks to amend Sub-section 1 of Section 22 so as to increase the existing amount of penalty from Rs100,000 to Rs50 million and Rs2,000 to Rs200,000, if any, person fails to furnish any documents, paper or information or refuses or fails to comply with any order or direction or contravenes or otherwise fails to comply with the provision of this ordinance.

An amendment is proposed to be made to expand the scope of the existing sub-section by providing powers to the SECP to make regulations to carry out the purpose of the Act and also in respect of its functions stipulated in Sub-section (4) of Section-20, besides the power to issue directives, codes, guidelines, circulars or notification as may be necessary for the purpose to carry out the objective of this Act.

The proposed new section seeks to empower the SECP to take penal action including punishment against any person for any default under the Act or any rules and regulation made thereunder after providing reasonable opportunity of being heard to the party concerned.

The bill seeks to omit the word “Stock” to enlarge the scope of the said section in order to harmonise the provisions of this section and the definition of “Exchange” provided in Clause (da) of Section 2 of this Ordinance. By virtue of the proposed amendment, commodity exchange shall also come within the ambit of this section.

The bill also seeks to enlarge the number of members from “nine” to “ten” on the Securities and Exchange Policy Board to be appointed by the federal government. The Bill seeks to insert a new Sub-clause (i) to add one more member on the Policy Board — ex-officio the Finance Minister or in his absence, the Advisor to Prime Minister on finance, as the case may be.

The bill also seeks to substitute the existing provision of Sub-section (7) of Section 12, whereby the Chairman of Securities and Exchange Policy Board would always be the Finance Minister or the Advisor to Prime Minister on Finance, as the case may be.

The bill proposes to add a new Clause (ja) in Section 20, whereby the function of the SECP would also include regulation of professionals who provide services within the financial services markets.

The Finance Bill now proposes to substitute the existing Sub-section (1), so as to provide an opportunity to an aggrieved person to file an appeal before the appellate bench against the order of the SECP made by one Commissioner or by an officer authorised in this behalf by the SECP.