Securities exchange, clearing house: SECP to be empowered to appoint independent director

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) will be empowered to appoint any person as an independent director of the securities exchange, clearing house or central depository in cases where the commission is not satisfied about the suitability of person proposed by the securities exchange/clearing house/central depository.

The SECP has issued SRO 1269(I)/2020 to amend the Securities Exchanges (Licensing and Operations) Regulations, 2016, here on Wednesday. According to the notification, where the commission is not satisfied about the suitability of person(s) proposed again by the securities exchange, the commission shall appoint any such person as deemed appropriate as independent director of the securities exchange.

Through SRO 1270(I)/2020, the SECP has specified that where the commission is not satisfied about the suitability of person(s) proposed again by the clearing house, the commission shall appoint any such person as deemed appropriate as independent director of the clearing house.

Under SRO 1202(I)/2020, where the Commission is not satisfied about the suitability of person(s) proposed again by the central depository, the commission shall appoint any such person as deemed appropriate as independent director of the central depository.

Copyright Business Recorder, 2020