ISLAMABAD, Nov 28: The Senate Standing Committee on Finance on Tuesday observed that the report of the Justice Saleem Akhtar-led Task Force on stock market crash was “far better” than that of the US team of forensic investigators.

The committee was of the view that the launching of a forensic probe into the March 2005 Karachi Stock Exchange (KSE) crash in the absence of “any essential data” was not a wise move on the part of the SECP. The findings of the report remained inconclusive despite spending of over Rs60 million.

“It was an exercise in futility… and the waste of public money,” the committee observed in its meeting.

Insiders told Dawn that SECP Chairman Razi-ur-Rehman was unable to satisfy a majority of the committee’s members and to answer many questions related to the data of badla financing and wash trade.

They said that the whole conversation of the SECP chief revolved around a single point: “You are innocent until proven guilty”. Some members said that it was ridiculous that small investors lost over $13bn and still the SECP chairman was talking of innocence.

Mr Rehman was unable to answer when asked by some members that whether a fair forensic probe was possible in the absence of vital data of trading by major brokers, and if not why the report out of the way rejected the findings of a more efficient Task Force?

The SECP chairman, however, said that the commission was strictly dealing with those 88 brokers who were accused of breaking certain rules in their Future Contracts. However, he made it clear that notices did no mean punishment and that the brokers had the right to defend themselves.

Sources said that Senators Prof Khurshid Ahmed and Mohammad Ishaq Dar just repeated the words of former SECP chairman Dr Tariq Hassan — who had termed the forensic report as justice for the rich — and said that small investors in the country’s bourses were too vulnerable to do business.

Meanwhile, an official press release issued here stated that the committee had directed the SECP chairman to plug the loopholes in the whole system and ensure that the interests of small and medium investors were properly safeguarded. It further directed the commission to emerge as a strict regulator and closely observe the activities of the brokers.

“This is the only way to ensure that the capital markets would perform their essential function of supporting the industry,” the press release stated.

Some members also asked Mr Rehman as to why he further created a state of uncertainty and suspicion in the market by delaying a report which had nothing new to reveal and which contradicted the Task Force’s findings.

The meeting was chaired by Senator Ahmed Ali and attended by Safdar Abbasi, Dr Khalid Mehmood Soomro, Ms Pari Gul Agha and Mohammad Amin Dadabhoi.