This refers to an incisive and eye opening article by Mr Khalil Ahmad under the title "How independent are KSE's independent directors" in Business Recorder of February 28.
It seems that scandals, mismanagement, favouritism, incompetence and making blatant exceptions to rules have become the order of the day at Securities and Exchange Commission of Pakistan, (SECP) as presented by the Managing Director of KSE and referred to by Mr Ahmad in his above article. After reading Mr Ahmad's exposé on the conduct of SECP, it should be renamed as "Scandals and Exceptions Commission of Pakistan".
SECP has truly lost the respect and confidence of small investors, such as me, since the so-called independent directors have the liberty to indulge in the manipulative insiders trading which can take the unsuspecting investors literally to the cleaners who are still licking their wounds inflicted upon them by the 2005 and 2006 crashes of the capital markets in the country.
The proposed exceptions by SECP to the rules relative to the management of Karachi Stock Exchange, (KSE), role of the Board of Directors as its watch-dog, the rag-tag composition of the independent directors, who neither have the requisite expertise, nor commitment to their responsibilities or time to perform their assigned function and the despicable conduct of one of the directors who has handed over his proxies to the Chairman of the Board to use as he pleases since he himself cannot attend board meetings, has tarnished and disgracefully belittled the image and status of SECP and the current Board of Directors, who if have an iota of self respect, should resign en masse.
One cannot help but express deep appreciation for the dignified conduct of the Chairpersons and the independent directors of the Lahore and Islamabad Stock Exchanges for their professionalism, selflessness, self-respect, steadfast adherence to the rules and personal sacrifice by not accepting any remunerations for their services to their respective bourse. They deserve all the credit and respect of the investors in their bourses.