KARACHI, Aug 20: Securities and Exchange Commission of Pakistan chairman Khalid Mirza reiterated that as a regulatory body chief it was his responsibility to take good care of the interests of all stakeholders in the capital market: investors, issuers of capital, the general public and market ‘intermediaries’ (stock brokers).

Speaking to reporters on Tuesday, Mirza said that he could not hold himself hostage to a group of ‘intermediaries’ and added that general perception was that the existing stock market was “of the brokers, for the brokers and by the brokers”.

Departing from the previous practice of calling a press conference, the SECP on Tuesday summoned four journalists, who were told of the Regulator’s side of the story in the current Regulator-broker conflict.

He said that as the watchdog it was his duty to perform the duel function of protection of investor interest and attracting capital and added that it was not possible for the market to grow unless “the price discovery was transparent, investors got a fair deal and the level of market abuse was at the minimum.”

The SECP chief said that his current directive on restructuring of the board of directors of stock exchanges could be considered as a directive-cum-request. Mirza claimed that many big brokers and the “silent majority” of members at the KSE was in favour of the SECP’s directive. He contended that when the Exchange chief (chairman) is elected by the general body of member brokers, his seat becomes “politicized” for which he turns to be chairman of members instead of that of the stock exchange.

The SECP chief said that over the last four decades or more the market had progressed to a certain level under the current set-up. But it had got stagnant and it must adapt to changes taking place in other developed markets for building up investor confidence and attracting foreign capital.

Referring to the press release issued by the Karachi Stock Exchange on Monday, the SECP chairman stated that it was incorrect that the board had “unanimously” agreed to all that was stated in that press release. In support of his contention, Mirza produced a statement signed by seven directors present at the board meeting, stating that they did not subscribe to the resolution issued by the KSE on Monday.

Mirza said that the only point on which there was a unanimous view was to hold talks with the SECP to resolve the issue. And the Regulator chief said that in the interest of most favourable conditions for the market, he was open to discussion, “if they came up with any sensible suggestion”.