ISLAMABAD: The Secu­r­ities and Exchange Com­mission of Pakistan (SECP) has decided not to increase the number of shareholder directors on the Board of Pakistan Stock Exchange (PSX).

The board will continue to remain dominated by independent directors.

The commission has withdrawn its earlier decision to revise the regulations to increase the number of shareholders in PSX board.

The composition of the board has been the major bone of contention between the apex and regulators following the reservations expressed by the Chinese investors on the earlier proposal to reduce the number of independent directors.

Unlike routine practice, neither the SECP has placed the decision on its website nor was the information released by the commission.

However, sources in the SECP said a letter has been written to Company Secretary PSX Muhamamd Rafique Umer by Director SECP Yasir Mansoor on Jan 26, 2018.

The letter said, “Commis­sion while taking into consideration the comments received during the public consultation period has decided that the Regul­ations be kept unchanged.’

The SECP had earlier accepted one of the long standing demands of the stock brokers by increasing the representation of shareholders in the PSX Board.

The draft amendment was made in the ‘Securities Exchange (Licensing and Operation) Regulations 2016’ by reducing the composition of independent directors to ‘one third’ at the PSX board, which was 50 per cent of it.

However, the corporate sector regulator has overturned its earlier decision and recently informed the PSX that independent directors would not be less than shareholder directors.

Published in Dawn, February 8th, 2018