The Securities and Exchange Commission of Pakistan (SECP) has served notices on about 50 brokers in Karachi and Lahore who were apparently involved in June 2006 market crash. In addition, 12-13 notices have already been served on those whose names were mentioned in the task force report on March 2005 scam.
"We have issued notices to 35-40 brokers in Karachi and 10-15 in Lahore who are involved in June stock exchange crisis, a week ago. No broker from Islamabad Stock Exchange (ISE) has been 'touched'" a top SECP official, on condition of anonymity, told journalists here on Wednesday.
The fresh notices are in addition to 12-13 notices already served on the brokers whose names were mentioned in the committee's report, the official said, adding that 25 percent forensic investigation has been completed on the collected data by a joint team of American consultants, foreign audit firms, and SECP officials.
Three American consultants have already reached and started working while two would be coming shortly to join them, he added. He said the names of those guilty brokers would be put on the exit control list (ECL), if the government smelled they could flee from the country fearing arrest.
Answering a question, the official said the brokers who were found guilty in March 2005 market crash would be punished in accordance with the existing law, while those involved in June 2006 crisis, would be dealt with under revised the law.
Replying to a question, the official said the SECP had not received any instructions from the government to launch inquiry against its former chief Dr Tariq Hasan, who the President had blamed for market crash.
"We have not received any instructions from the government for holding inquiry against Tariq Hasan, but we are looking at the market data collected from different sources," the official maintained.
He said Tariq Hasan had resigned last week and he was no more on the pay roll of the SECP. He, however, hinted at Hasan's role in the CFS issue, saying that when he was phasing out CFS in March/April last, shares price was increased.
Asked what would be the fate of ministers, whose names were mentioned in the report, the official said that action would be taken against the responsible ones.
"No body is above the law and the action will be taken against those who are found involved in the scam, but I have no proof of finance ministry's involvement in the crash", he maintained.
When his attention was drawn that the journalist was taking about the ministers, the official said: "I am also responding in the same sense." He also said that efforts were being made to open a full-fledged SECP's sub-office in Karachi to look into. According to him, hiring 150-200 hands will be hired to man the sub-office.
In reply to a question regarding establishment of National Stock Market, on the line of neighbouring countries, the official said that efforts were afoot to integrate stock exchanges and the issue was discussed with the LSE and the ISE management.
He was of the view that if the issues were not resolved amicably, the SECP would explore other options like setting up a National Stock Exchange. The official said the three stock exchanges would be integrated under Universal Access Number (UAN) and client code from August this year. This would not only help trace buying of shares with fake names, but also fast in retrieving data.
Another official said the SECP has taken several initiatives to facilitate the investors and general public. These include voluntary pension scheme, which will benefit the segment of self-employed, who were earlier deprived of this facility. A lot of work was also being done on other initiatives for TFCs, real estate, and investment trust.
He said the real estate business, which was not in the tax net, would be regulated in consultations with the provinces to bring transparency in the evaluation of land.
He also said that Nationalised Non-Banking Finance Companies (NBFCs) was also being reorganised, and an American consultant has been hired for this task, adding that draft was ready for submission to the finance ministry. He said rules for venture capital were re-modified to facilitate investment for revamping industry.
The SECP was also actively working on e-governance for end-to-end-digitalisation so that investors could benefit from new ideas of information technology, the official said. He said companies' registration, submission of returns, registration of brokers and agents would be done soon online. He was of the view that the investors, who want to obtain information on any of their interested subjects, could send queries online which would be properly responded as early as possible.
Answering a question, he also said the SECP would establish data warehousing to check marketing trading and Nadra's data would also be used for this purpose.
Comments
Comments are closed.