Chairman Securities and Exchange Commission of Pakistan (SECP) Raziur Rehman Khan has said that penalties have been substantially enhanced through Finance Bill 2007-2008 to improve governance in the corporate sector ensuring compliance by the registered companies.
After inaugurating the branch of Trust Investment Bank Ltd here on Wednesday, chairman SECP told Business Recorder that the commission has considerably raised penalties to properly regulate the corporate entities. This would ensure that no company could escape after payment of meagre amount of penalty on violations of rules and regulations.
About burning of sensitive records of the Public Accounts Committees (PACs) and the service branch of the National Assembly, he said that the PAC has only retained copy of the selected reports on stock exchange crises, as the original record of stock market transactions is available with the commission.
The SECP has completed record pertaining to stock market and only necessary reports were submitted to the Public Accounts Committee. The National Assembly does not have to maintain any detailed record of the stock exchanges, as it is job of the regulators.
He said that the Federal Bureau of Investigation (FBI) has not approached the SECP for assisting in investigation of the US insider-trading scam involving two Pakistani bankers. If any FBI team approaches the SECP, the commission would fully cooperate with them. He said that the SECP has also made changes in the policy board through Finance Bill 2007-2008.
The SECP and Central Board of Revenue (CBR) have also introduced the concept of group taxation and group relief for holding and subsidiary companies in the budget.
Responding to a query, Raziur Rehman said that the Real Estate Investment Trust rules would be issued in the next 6-8 weeks. The income arising on sale of immovable property to Real Estate Investment Trust (REIT), exempted from tax under the Income Tax Ordinance 2001.
Speaking on the occasion, President and CEO of the Trust Bank, Javaid Bashir Sheikh said that the opening of branch in Islamabad is a major step towards reaching customers at their doorsteps.
The Bank will provide financial services including leasing to corporate SMEs individual project financing and short term financing, housing finance, bills discounting, Inland LC discounting, issuance of bank guarantees, bid bond and performance bond etc.
Being member of Lahore Stock Exchange (LSE) we provide access to institutions and retail investors to the Pakistan's capital markets. He said that Pakistan Credit Rating Agency (PACRA) has assigned AA- (long-term) and A1+ (short-term) entity rating to the bank, which is highest among the NBFC sector in Pakistan.
He said that the bank is focusing on SME sector to provide loans to the people in small cities. Under medium term programme, bank is likely to be converted into the Islamic commercial bank in future.
The ceremony was also attended by Asif Kamal, the Chairman, Ali Aslam Malik, the Director, Javaid B. Sheikh, President/CEO, Shahid I. Choudhri, Country Business Head and S.M.Nasim, Regional Head North of the Bank and Aftab Ahmed Chaudhry, Managing Director, Islamabad Stock Exchange (ISE).
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