Competition Commission asks SECP to scrap changes

KARACHI: The Competition Commission of Pakistan (CCP) has issued a policy note to the Securities and Exchange Commission of Pakistan (SECP), recommending revocation of recent amendments made to the Karachi Stock Exchange (KSE) Listing Regulations.

The SECP, according to the amendments proposed on June 22, requires directors of all listed companies to obtain a certification of the “Board Development Programme”, offered by the Pakistan Institute of Corporate Governance (PICG) at a cost of Rs200,000 per director. If the amendment is approved, it can create a monopoly for PICG, the CCP said in a statement on Monday.

The commission is of the view that granting the right of certification to only one organisation will create entry barriers for other educational institutions, and hence restrict competition. Such a measure could retard incentives for quality improvement by the dominant player, and limit consumer choice both in cost and location.

The policy note, issued by Dr Joseph Wilson, Member Policy Planning, Research and International Affairs, has recommended an immediate revocation. It has been proposed that the KSE should clearly lay down detailed requirements of the programme such as the curriculum and number of credit hours required. This would enable other institutions to offer the course as well, the CCP said.

Published in The Express Tribune, July 13^th, 2010.