The policy board meeting of the Securities and Exchange Commission of Pakistan (SECP) is expected to take place next week to discuss important issues like budget approval of the Commission for 2010-11 and other policy matters of the commission. Sources told Business Recorder here on Wednesday that the policy board meeting chaired by Secretary Finance Salman Siddiqui would take place in the next 5-6 days.
The meeting will take up the issue of budget approval for fiscal 2010-11. So far, the annual budget for 2010-11 has not been approved by the policy board, which is creating hurdles in smooth functioning of financial and administrative matters of the Commission.
It is expected that the policy board meeting would approve the budget for new fiscal year necessary for dealing with the financial matters of the Commission. The main objective of the policy board is to provide guidance to the Commission in all matters relating to its functions and to formulate policies in consultation with the Commission. The board is also responsible for advising the government on matters falling within the purview of the SECP Act and other corporate laws; and also to express its opinion on policy matters referred to it by the government or the Commission.
Sources said that the SECP is also expected to convey its concern on the delay in appointment of the commissioners to the Secretary Finance during the upcoming meeting of the policy board. The SECP officials are also expecting decision on the early appointment of new commissioners in the SECP. The number of commissioners at the SECP has to be between five to seven, including the chairman.
The main divisions that are currently without commissioners are the Securities Market, Support Services and Insurance due to which day-to-day affairs of SECP have been suffering. No appellate bench has been constituted in the SECP for more than five months, as there are only two commissioners in the SECP ie Chairman of the commission, Salman Ali Shaikh and Tariq Asif Hussain, the Commissioner Legal. Salman Ali Shaikh has been looking after three divisions of SECP, Insurance Division, Specialised Companies Division and the Registration and Enforcement division.
An appellate bench of SECP shall comprise at least two commissioners and one observer commissioner. The concerned commissioner in-charge of a division cannot head a case of his division. Sources said that the Ministry of Finance is fully aware of the current situation for which early appointments of commissioners at SECP would be done. The meeting is also likely to discuss the proposed Securities and Exchange Commission of Pakistan Act, 2010.
According to the draft Act, the Commission shall consist of such number of commissioners as may be fixed by the Federal Government but such numbers shall not be less than 5 or more than 7, including the Chairman. The commissioners shall be appointed by the Federal Government on the recommendation of the Policy Board from amongst persons of established integrity, competence and recognition with experience of not less than 20 years in any of the disciplines ie law, accountancy, finance, insurance, economics, securities market, investment management, industry, banking or related disciplines.
The term of office of a commissioner shall be three years from the date of his appointment and may be reappointed if eligible. The draft SECP Act further stated that a specific provision would deal with the financial year and budget. The financial year of the Commission shall commence on 1st July each year and end on June 30 of the next year. The Commission shall prepare a budget for the next financial year not later than 30 days before the expiry of each financial year, and submit the same to the Board for its approval; provided that in exceptional circumstances, the time may be extended till the expiry of the financial year by the Board. The Commission may incur necessary expenditure up to 10 percent of the total approved budget for each budgetary head for which a provision has not been made in the approved budget provided that post facto approval is sought and obtained from the Board.
The draft SECP Act 2010 relates to the power to obtain finance, borrow money and receive grants. The Commission may obtain finance or borrow money for meeting any of its obligations or performing any of its functions at such rate of return, profit or mark-up, and for such period and on such terms and conditions as approved by the Board. The Commission may accept grants from domestic, international, and multilateral agencies, draft SECP Act 2010 says.
Comments
Comments are closed.