ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) Policy Board on Tuesday approved the revised budget of Rs2.8 billion for 2019-20 with a directive to the commission for proposals to reduce the Rs350 million deficit.

The directions are in line with the government’s austerity drive to reduce expenditures.

“I am in support of high salaries in the SECP, but the employees must justify their salaries and must be firm, helpful and fair to make SECP an efficient and service-oriented organisation,” remarked Policy Board Chairman Khalid Mirza while chairing the meeting.

“The employees are strength of the SECP and we have to build their capacity to ensure their real performance with positive enabling approach,” he added.

He said that the capital expenditure of the SECP has been cut for 2019-20.

Meanwhile, sources said that the cuts are in the form of reduction in annual employee bonus, and reducing surplus employment, cuts in the expenditures of IT and legal departments.

Recommendations

The board also approved several recommendations of the Regulations Committee including amendments to the Companies Act, 2017, amendments to the National Clearing Company of Pakistan Ltd Regulations pertaining to GoP Ijara Sukuk, change in time-line for submission of quarterly accounts and the requirement of entities to be included in NBCM, draft Cash Reserve Account regulations, amendments in Shariah Regulations, 2018, amendments to PSX rule book pertaining to related party transactions, amendments to the Public Sector Corporate Governance Rul­es, 2013 and amendments to the Employees Contributory Funds Regulations, 2018, among other matters.

The board also specified revised rate of annual fee at 0.02 per cent of net assets applicable on all categories of Collective Investment Schemes.

The SECP notification in this regard took effect t from Monday.

In order to develop an underlying base for the deliverable commodities, futures market in agricultural products and link the commodity market with the country’s economy, the board also gave a green signal for the regulatory framework of collateral management companies laid down in the draft Collateral Management Companies Regulations, 2019.

Subsequently, any public company desiring to function as a collateral manager will can apply to the SECP seeking permission under these regulations.

Published in Dawn, July 3rd , 2019