Role in capital market uplift: Senate panel asks SECP to prepare presentation

Senate Standing Committee on Finance has directed the Securities and Exchange Commission of Pakistan (SECP) to draft comprehensive organisational presentation, reflecting the SECP role in the development of capital market and other sectors regulated by the Commission, particularly the procedure for appointment of its chairman and commissioners.
The Senate Standing Committee on Finance headed by Senator Nasreen Jalil here on Wednesday expressed dismay over presentation of the commission and directed the SECP officials to prepare a more elaborate presentation which should clearly reflect the performance of the organisation. The committee directed the SECP to give performance of the commission in improving capital market regulations, stock market operations and steps taken to secure the investment of general public in various schemes.
The committee members pointed out that if any sector has shown good performance due to efforts of the SECP, it should be highlighted in the presentation. Senator Syeda Sughra Imam said the presentation of the SECP should reflect its performance in sectors governed by the commission. One of the committee members observed that SECP has no role in growth of corporate sector and whatever growth has been observed so far was due to the efforts of the private sector itself. Minister of State for Finance responding to this observation remarked that similar is the situation in case of other regulators. None of the regulators has role in growth of its respective sector. The regulators could not play their due role in development of businesses in the country, Salim Mandviwalla added.
Committee members stated that despite many hearings of the committee on the issue of Natover Lease & Refinance Limited (NLRL), the SECP has yet not resolved the issue depriving small investors and general public of their life savings. The committee had also directed National Accountability Bureau (NAB) to resolve the issue, but the matter is still unresolved. The investigation has not reached its logical end. Haji Adil said that the surprisingly the office of the said company is still open and they are paying salaries to its employees from money looted from general public/small investors.
Senator Ilyas Bilour asked the SECP to give final reports on the stock market crash of 2005 which caused loss of millions to the small and retail investors. The then SECP Chairman Dr Tariq Hasan was removed from his position during Eid holidays on the orders of the then Prime Minister. Former SECP Chairman was removed from the position on submitting a report which exposed those involved in stock market crisis of 2005. There must be some key evidences in the report, which resulted in removal of former SECP chairman.
Responding to this SECP officials clarified that two reports were finalised on the stock market crisis of 2005 and both the report are available on the SECP official website. The Report of the Taskforce Report had reviewed the March 2005 situation. The task force was headed by former Justice Saleem Akhtar. The task force report was made public in August 2005. The second report was prepared by Forensic Investigator of M/s Diligence from USA. Both reports have already been made public.