ISLAMABAD: The Competition Commission of Pakistan (CCP) has initiated an inquiry into the collusive behaviour in the market and possible anti-competitive activities by primary dealers in the T-Bill auctions.

In this connection, the CCP has summoned Asad Rizwi, Chief Executive Officer, Currency Markets Association (CMA) to assist the commission in the said matter.

The CCP has initiated inquiry against the possible anti-competitive activities by primary dealers in the T-Bill auction.

According to the notice, “Whereas the Competition Commission of Pakistan (the ‘Commission’) has initiated the subject enquiry under section 37(1) of the Competition Act, 2010 (the ‘Act’) in order to ascertain facts with reference to the possible violation of Section 4(1) read with Section 4(2)(e) of the Act. The Enquiry Committee is of the view that the bidding rates and bidding patterns raise suspicions of collusive behaviour in the market for T-bills.

The enquiry committee notes that the ‘Pak revaluation Rates (PKRV)’ is the second, market rate for various tenors of T-bills which is an important factor influencing primary market rates. As FMAP has selected your brokerage house for the process of determining PKRV rates you are therefore, summoned to help the Enquiry Committee in understanding how PKRV is calculated, influence/relationship between PKRV and primary market rates for T-bills, brokerage selection criteria and role of FMAP in the process, the CCP notice said.

Therefore, in exercise of powers under Section 33 of the Act, you are hereby summoned to appear in person before the enquiry committee on Tuesday, 15th June 2022 at 4:00 pm at the Office of the Commission, ie, 8th Floor South, ISE Towers, 55-B, Jinnah Avenues, Islamabad, the CCP added.

Copyright Business Recorder, 2022