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ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced maximum term limits for the chief executive officers and independent directors to serve in the capital market infrastructure institutions (CMIIs).
The CMIIs include PSX, NCCPL, CDC and PMEX, and the tenure limits of the CEO of these entities is maximum of three terms with the third term to be allowed only in case of exceptional performance and subject to a competitive selection process.
SECP has also introduced tenure limits of maximum of three terms for independent directors across all CMIIs, while, no individual can serve as an independent director on the board of the same CMII for more than two terms.
The tenure limits have been introduced to uphold the principles of good governance and to ensure regulatory effectiveness of the CMIIs as these entities perform important public policy functions including the infrastructure, services and regulations for smooth and efficient working of the capital markets.
These reforms are expected to encourage greater participation by a variety of professionals in the governance of the CMIIs and promote a culture of independence, accountability and objective decision-making for better protection of public interest.
SECP Chairman Akif Saeed has stressed the need for CMIIs to follow the highest standards of corporate governance and encouraged them to frame comprehensive human resource policies for greater transparency.
Published in Dawn, August 12th, 2023
