SECP refutes media reports; says no crackdown against companies ordered

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has strongly refuted media reports that the commission was taking action against companies “to recover gold and other valuable properties”.

“No crackdown of any sort is being planned or is

under consideration,” the SECP clarified in a statement issued on Tuesday. “Being
the apex regulator of the corporate sector, the SECP is taking all necessary
steps to ensure beneficial regulation and growth of the capital market and
corporate sector in Pakistan.”

The commission further clarified that SECP does

not regulate or enforce Income Tax Ordinance, 2001, or Benami Transactions
(Prohibition) Act, 2017.

“SECP powers are restricted to offences

provided in the SECP Act, 1997, and other administered legislation as provided
in its Schedule,” the statement reads. “The recently notified rules, i.e. the SECP
(Search and Seizure) Rules, 2019, are a requirement of law under section 31 of
the SECP Act, 1997, which lays down strict procedures for use of powers by the
SECP’s investigation officers. It is reiterated that these powers are
restricted to investigations ordered by the commission under the
SECP-administered legislation.”

As wrongly reported in a section of the media,

no new powers have been bequeathed to the SECP, the commission stated. “It is
clarified that the powers of search and seizure and forced entry have been part
and parcel of the SECP Act, 1997, since the establishment of the commission.”

As per the statement, that recently notified rules

are aimed at helping the commission to curb any potential misuse of authority
by the investigation officers.

The rules, inter alia, require investigation

officers to first seek authorization, in writing, from the commission,
comprising of five commissioners for the purpose of search and seizure.
Further, in certain circumstances, the order from the relevant magistrate is
also required.