SECP operates below full strength as chairman, two commissioners exit

The Securities and Exchange Commission of Pakistan (SECP) has been running with only two commissioners since December 12, following the completion of terms by former Chairman Akif Saeed and Commissioners Mujtaba Lodhi and Abdur Rahman Warraich.

The remaining members, Zeeshan Rehman Khattak and Muzaffar Ahmed Mirza, are overseeing the regulator, which is mandated under the SECP Act to have five to seven commissioners.

Regulatory experts say a full commission is essential for key functions, including policy approvals, enforcement actions, and major regulatory decisions. Analysts warn that incomplete leadership could undermine oversight of the Pakistan Stock Exchange, corporate governance, and investor protection.

In early December, a high-level committee led by Finance Minister Muhammad Aurangzeb interviewed 27 candidates for the three vacant posts. Shortlisted names are expected to be forwarded to the federal cabinet for final approval.

Stakeholders have expressed concern over the delay. Najam Ali, CEO of Next Capital, said the absence of new appointments sends a negative signal to investors about Pakistan’s capital markets.