Mehmood likely to be appointed acting SECP chief

Despite change at the helm, legal proceedings to continue against different entities

KARACHI: The Securities and Exchange Commission of Pakistan's (SECP) senior most commissioner, Tahir Mehmood, is likely to be given the charge of acting chairman, who will carry on the ongoing legal proceedings against the commission's registered entities.

"According to the amended SECP Act 2016, the senior most commissioner will be given the charge of acting chairman in case the chairman is removed, his tenure is completed or he resigns," an SECP official told The Express Tribune.



Mehmood was the senior most commissioner when Zafar Hijazi, who was serving as SECP chairman, was arrested in a record-tampering case on Friday. The finance secretary may notify the name of acting chairman any time.

However, "last time when a court removed Muhammad Ali from the post of SECP chairman, the then finance secretary took 15 days to appoint the acting chief," he said.

Legal proceedings

There is a perception among corporate circles that the show-cause notices issued and legal proceedings initiated during the tenure of Hijazi would have no legality after his removal. "This perception is totally against the reality," he emphasised.

The official pointed out that Hijazi's appointment as chairman had not been declared illegal. Therefore, legal proceedings will continue under the acting chairman.

"When a court gave legal protection to the decisions taken during the tenure of Muhammad Ali, whose appointment was declared illegal, then how decisions taken during Hijazi's tenure can be called illegal or be reversed," he argued.

He asserted that action had been taken against an individual (Hijazi) and not against the institution (SECP). Therefore, the institution has remained intact and all of its commissions, divisions and departments stand worthy.

He said the chairman was not the only person who had judicial powers to take action, even deputy directors could exercise such powers when required.

Accordingly, ongoing legal proceedings at every commission, division and department including the Securities Division, corporate enforcement, NBFC and insurance departments would continue.

New chairman

According to the SECP website, Mehmood has been associated with the SECP/erstwhile Corporate Law Authority since 1989. Prior to his appointment as commissioner by the federal government in September 2010, he had been serving as Executive Director (Enforcement) since July 2006.



A fellow member of the ICMAP and the Institute of Corporate Secretaries of Pakistan (ICSP), he has a degree in law with extensive experience in company law administration, takeover laws, corporate restructuring, mergers and takeovers, corporate finance, judicial order writing, etc.

Published in The Express Tribune, July 22^nd, 2017.

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