SHC bars SECP acting chairman from holding office
Court says no such position exists in the rules and regulations governing the SECP.
KARACHI:
The Sindh High Court, on Saturday, barred Tahir Mehmood, who was appointed as the acting chairman of the Securities and Exchange Commission of Pakistan in April, from holding the position of acting chairman saying that such a position does not exist in the SECP Act and that no rigorous procedure was adopted by the caretaker government before appointing him.
The order was passed by the division bench of the High Court, headed by Justice Faisal Arbab.
According to a press statement, SECP Deputy Director Rana Mustafa, the petitioner, challenged Mehmood’s appointment as acting chairman of the equity market regulator.
The order stated that the case of the petitioner was that the appointment of Mohammad Ali Ghulam Mohammad as commissioner and chairman of the SECP was set aside by the Honourable Supreme Court by directing that this position was to be filled in, after meeting the requirements of the SECP Act 1997. But, Mehmood was appointed as chairman on acting charge basis for an indefinite period and the process to be undertaken in terms of the Supreme Court had not yet begun.
Furthermore, it said that Mehmood did not meet the requirement of becoming the commissioner in line with Section 5(1) of the SECP Act 1997, which states that “the Commission shall consist of such number of commissioners, including the chairman, appointed by the Federal Government as may be fixed by the Federal Government but such number shall not be less than five and more than seven. A commissioner shall be a person who is known for his integrity, expertise, experience and eminence in any relevant field, including the securities market, law, accountancy, economics, finance, insurance and industry.”
Mehmood had gained his qualification from the Institute of Cost and Management Accountants of Pakistan and has no practical experience in the fields of finance, law, or economics etc. Moreover, he has no experience in the capital markets or the insurance sector. Throughout his career, he served mostly in the company registration offices of the SECP.
Published in The Express Tribune, June 2nd, 2013.
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The Sindh High Court, on Saturday, barred Tahir Mehmood, who was appointed as the acting chairman of the Securities and Exchange Commission of Pakistan in April, from holding the position of acting chairman saying that such a position does not exist in the SECP Act and that no rigorous procedure was adopted by the caretaker government before appointing him.
The order was passed by the division bench of the High Court, headed by Justice Faisal Arbab.
According to a press statement, SECP Deputy Director Rana Mustafa, the petitioner, challenged Mehmood’s appointment as acting chairman of the equity market regulator.
The order stated that the case of the petitioner was that the appointment of Mohammad Ali Ghulam Mohammad as commissioner and chairman of the SECP was set aside by the Honourable Supreme Court by directing that this position was to be filled in, after meeting the requirements of the SECP Act 1997. But, Mehmood was appointed as chairman on acting charge basis for an indefinite period and the process to be undertaken in terms of the Supreme Court had not yet begun.
Furthermore, it said that Mehmood did not meet the requirement of becoming the commissioner in line with Section 5(1) of the SECP Act 1997, which states that “the Commission shall consist of such number of commissioners, including the chairman, appointed by the Federal Government as may be fixed by the Federal Government but such number shall not be less than five and more than seven. A commissioner shall be a person who is known for his integrity, expertise, experience and eminence in any relevant field, including the securities market, law, accountancy, economics, finance, insurance and industry.”
Mehmood had gained his qualification from the Institute of Cost and Management Accountants of Pakistan and has no practical experience in the fields of finance, law, or economics etc. Moreover, he has no experience in the capital markets or the insurance sector. Throughout his career, he served mostly in the company registration offices of the SECP.
Published in The Express Tribune, June 2nd, 2013.
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