ISLAMABAD: The Securities and Exchange Policy Board on Saturday approved the setting up of a ‘centralised adjudication division’ in the Securities and Exchange Commission of Pakistan (SECP).
Instead of the following the existing practice of adjudication being carried out separately by various departments/divisions within the commission, this division will work as a quasi-judicial arm of the commission that will be responsible for its entire adjudication work pertaining to regulated entities and persons.
The centralisation of adjudication will likely enhance the effectiveness of the commission, ensure fair and consistent decisions, and minimise the risk of arbitrariness in the discharge of its judicial function.
The meeting, held under the chair of SECP Chairman Professor Khalid Mirza, also took up the matter of SRO 1048 (I) dated September 11, 2019, requiring companies to file a tax compliance certificate. The board considered this order to be ultra vires and beyond the jurisdiction of the SECP, directing the commission to take steps for its withdrawal after taking legal advice.
Among other decisions, SECP’s financial statements for the year ended June 30, 2019, were also approved. The commission’s annual report will be finalised after a thorough review by the board members.
The board took note of the following and gave appropriate directions to the commission seeking to rectify the situation: Unwarranted, and possibly illegal, intervention by outside forces and harassment as well intimidation by staff which had debilitated the commission; withdrawal of cases wrongfully referred to law enforcement agencies; and repatriation of staff seconded to these agencies as directed by the policy board.
The board also pointed out several stock-related governance issues that need to be redressed. The commission needs to objectively determine – through a departmental inquiry – the factual position regarding the charges being faced by certain staff members that had been implicated, or were likely to be implicated, in legal cases; and if so deemed appropriate/necessary for the commission to stand up and defend these staff members in all forums.
The policy board, in pursuance of Section 12 of the Act 1997, comprises ex-officio members of the ministries of finance, commerce and law, State Bank of Pakistan, SECP and members of the private sector.
