Ministry of Finance has reposed full confidence in the appointment of Muhammad Ali Ghulam Muhammad as new chairman of the Securities and Exchange Commission of Pakistan (SECP) with the comments that the new chairman has rich experience in administration, finance, corporate and academics of great repute.
While strongly defending the appointment of Muhammad Ali, Secretary Finance Dr Waqar Masood informed the Senate Standing Committee on Finance Wednesday that the selection of SECP Chairman is the prerogative of the federal government. Ministry of Finance has interviewed a number of candidates prior to selection of the most suitable person required for filling the slot. On the recommendations of the Finance Ministry, Prime Minister has approved Muhammad Ali as new Chairman of the SECP.
When Chairman of the committee Senator Ahmad Ali asked the Finance Ministry to provide details of short-listed candidates, Secretary Finance assured the committee that the selection of the candidate has been done in accordance with the law. The list of the candidates would be provided to the committee soon.
Dr Waqar Masood said that the Ministry of Finance exercise extreme care and due diligence in appointment of persons heading the regulatory bodies.
Responding to a query, SECP Chairman informed the committee that the commission could have a maximum of seven commissioners. However, right now we are working with two of them myself and Tahir Mahmood. Sharing about his experience, he said that he has vast expertise in administration both locally and internationally, encompassing real estate, IT and other sectors.
To a question whether he has worked with a brokerage house, Muhammad Ali categorically informed the committee that he has not worked any brokerage house. I have not worked in the regulatory environment in the past, but have 17 years experience in dealing administrative matters. "A lot of my views are not welcome to the brokers' community", he said. Being the regulator, the SECP wanted the capital market to operate at the international level. For that, it is important that the market should not be controlled by certain persons.
To improve this situation, the SECP would introduce new procedures in the stock market. The SECP would take measures to check manipulation in the stock market by bringing transparency in the system. Referring to a past meeting, SECP chairman said that the commission had disagreed to a number of demands of the brokers' community. However, the commission would try to resolve the important issues of the capital market amicably.