Shaukat Hussain appointed SECP chairman in apparent haste

Move comes days before govt due to complete five-year term

ISLAMABAD: The government appointed on Saturday Shaukat Hussain as chairman of the Securities and Exchange Commission of Pakistan (SECP) in haste, terminating the process it initiated two days ago to put Tahir Mehmood as head of the regulator.

The government has appointed Shaukat Hussain, commissioner, as the SECP chairman with immediate effect, according to an official notification of the finance ministry.

The government took the approval of the federal cabinet through circulation despite the fact that the cabinet is meeting regularly every week. The government first circulated a summary on Wednesday, seeking approval of the federal ministers to appoint Mehmood as chairman, said sources in the finance ministry.



Despite a majority of the ministers giving their consent to appoint Mehmood, the Cabinet Division moved another summary on Friday evening, in which it rescinded its previous summary and sought the approval of the name of Hussain, sources said.

But Finance Minister Dr Miftah Ismail told The Express Tribune that the federal cabinet approved the name of Hussain for the slot of SECP chairman.

The government’s decision to appoint Hussain in a haphazard manner may undermine the authority of the regulator as such appointments often become subject of court scrutiny.

The government made the appointment just 18 days before the end of its five-year constitutional term. The Election Commission of Pakistan (ECP) has placed a ban on appointments and release of development funds aimed at providing level playing field to all the political parties before general elections. However, the Islamabad High Court this week set aside the ban. The ECP has challenged the IHC order in the Supreme Court of Pakistan.

Dr Ismail said the government did not violate the ECP ban, as there is no restriction on hiring people in regulatory bodies like the SECP.



The appointment of the SECP chairman was overdue since 16 December 2017. Under the law, the new chairman of the SECP has to be appointed within four months after the end of the chairman term. On July 24, 2017 the federal government suspended the then chairman SECP, Zafar Hijazi, and appointed Zafar Abdullah as acting chairman. However, the post became technically vacant on December 16 when Hijazi completed his full term.

Hussain has assumed charge, according to a press release issued by the regulator on Saturday. Hussain is a fellow member of the Institute of Cost and Management Accountants of Pakistan. Before assuming charge as a commissioner on March 27, 2018, he was executive director and registrar of companies in-charge of Corporatization and Compliance Department (CCD) at the SECP, it added.

In March this year, Hussain was appointed as commissioner through a competitive process.

Hussain joined the SECP as joint registrar in September 2000. He has complete grasp of all the laws administered by SECP, according to the official handout. Prior to joining the SECP, he worked with a professional accountancy firm, a development financial institution and listed companies of both the public and private sectors.



The SECP is currently working below its official strength, as at present there are only four commissioners including the chairman. There is a requirement of appointing a minimum five commissioners to keep the SECP running.

In April, the government placed an advertisement in the press to hire another commissioner. But the process has not been initiated.

After the exit of Hijazi and former Securities Division Commissioner Akif Saeed, the SECP has eased many regulations in the name of facilitating the stock market. Instead of getting about half a dozen licences, the SECP in January this year introduced the concept of single licence for the entire brokerage industry.

The regulator also restored licences of brokers that had been suspended in past few years. Progress on about a dozen criminal cases filed against brokers has also come to naught.