the bill is aimed at removing the deficiencies and gaps in the 1969 Securities Exchange Ordinance (SEO) and will streamline the patchwork in this law. PHOTO: EXPRESS
According to the Securities and Exchange Commission of Pakistan (SECP), the bill is aimed at removing the deficiencies and gaps in the 1969 Securities Exchange Ordinance (SEO) and will streamline the patchwork in this law.
It will provide a detailed and comprehensive regulatory structure which includes provisions for prescribing eligibility criteria for licencing of all market intermediaries including stock exchanges, the clearing company and the Central Depository Company.
“It provides the requirements for prescribing fit and proper criteria for all entities licenced under the act and for ensuring compliance with the same on a continuous basis,” an SECP official said.
It also provides for a more effective enforcement regime and also grants powers for strict disciplinary actions in cases of violations of law, including a full range of penalties.
In the committee meeting, SECP Chairman Zafar Hijazi spoke about the resolve of the apex regulator to ensure a fair and transparent market and protection of the interest of investors.
“There would be no compromise on investor interests and there would be zero tolerance of market misconduct and unfair trade practices,” he declared.
In order to effectively discharge its regulatory role, the SECP has strengthened its enforcement functions by increasing the size of the market surveillance team and upgrading its infrastructure.
Securities Market Division (SMD) Commissioner Zafar Abdullah, while responding to a question about insider trading, explained related provisions of the law.
About the risk management mechanism, he highlighted the current structure in place on the stock exchanges.
At present, the securities market is being regulated by the SECP under the 1969 Securities and Exchange Ordinance, SMD Executive Director Imran Iqbal Panjwani said.
In order to encapsulate developments, especially after demutualisation, in the securities market over a period of time, to introduce best international practices and incorporate the IOSCO principles of securities regulations, it is important that the 1969 SEO is replaced with a comprehensive, modern and all-encompassing law.
The committee appreciated the SECP’s efforts and assured the regulator of its full support for bringing about requisite changes in the regulatory framework. It decided to hold its next meeting on the subject at the SECP’s head office.
Published in The Express Tribune, January 30th, 2015.
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