Policy Board directs SECP to recall officers deputed at NAB, FIA

Updated November 17, 2019

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The Securities and Exchange Policy Board (SEPB) expressed dismay with the Securities and Exchange Commission of Pakistan (SECP) for failing to recall its officials currently serving in various law enforcement agencies and to transfer back cases wrongfully referred to the National Accountability Bureau (NAB). — Reuters/File
The Securities and Exchange Policy Board (SEPB) expressed dismay with the Securities and Exchange Commission of Pakistan (SECP) for failing to recall its officials currently serving in various law enforcement agencies and to transfer back cases wrongfully referred to the National Accountability Bureau (NAB). — Reuters/File

ISLAMABAD: The Securities and Exchange Policy Board (SEPB) expressed dismay with the Securities and Exchange Commission of Pakistan (SECP) for failing to recall its officials currently serving in various law enforcement agencies and to transfer back cases wrongfully referred to the National Accountability Bureau (NAB).

The SEPB meeting, chaired by Chairman Khalid Mirza, issued directions to the various agencies where the SECP officers were posted at the NAB and the Federal Investigation Authority to contribute salaries and other expenditures incurred by the staff.

Moreover, the board directed the SECP to re-hash its Annual Report 2019 to make it professional including facts that are both positive and negative.

“The Annual Report should clearly state the problems faced by the commission during the past year particularly in reference to unwarranted intrusion by law enforcement agencies and also realistically highlight future goals and strategic plans of the Commission,” Mirza told Dawn.

The board took serious note of the PIA chief executive’s statement regarding profitability of the national carrier as it ‘prima facie’ can be taken as manipulating the market.

The SECP has been directed to look into, take appropriate enforcement action and develop a system by which public sector organisations are duly monitored for any possible violations of the laws administered by the SECP.

“It was brought to our notice that after statement of the CEO PIA, market transactions and the share price of PIA increased in the stock market,” Mirza added.

“We have also taken note of persistent negative mindset of certain officials in the SECP who currently have obstructive and ‘ruler-like’ mindset,” he said while adding that direction have been given to the SECP for appropriate steps to ensure that service orientation is inculcated in the staff to develop the proactive approach.

The SEPB directed the SECP to revisit proposed Growth Enterprise Market (GEM) Listing Regulations of the PSX on account of them being too stringent.

It was observed that it was essential to ease the market and provide provisions for a premium board for a premium tier in the stock exchange to facilitate growth of capital market and encourage initial public offers in the primary market.

Apart from expressing concerns that there was no CEO of PSX for several months, the Policy Board decided to initiate review process of the Securities Act 2015 with the view to remove harsh regulatory clauses that hamper overall growth of securities market to facilitate ease of doing business in the country.

The board also decided to review and rationalise the Futures Act, 2016 and the Limited Liability Partnership Act, 2017 which are onerous and cumbersome, so as to constitute a facilitating regulatory environment.

The board approved the General Takaful Accounting Regulations, 2019, the Provisional Manager and Official Liquidator Regulations 2019, Corporate Rehabilitation Regulations 2019.

The meeting approved the directive on adoption of IFRS-14 Regulatory Deferral Accounts under section 225 of Companies Act 2017, directives on financial reporting of family window takaful operations by life insurers and compliance Of Compulsory Group Insurance under the Industrial and Commercial Employment (Standing Order) Ordinance, 1968.

The board also advised the commission to revisit the Regulatory Sandbox Guidelines 2019 (Insurance) and gave directions for appropriate amendments to be made to the Companies (further Issue of Capital) Regulations 2018 so as to facilitate and promote capital mobilisation.

Published in Dawn, November 17th, 2019