ISLAMABAD: The policy board of the Securities and Exchange Commission of Pakistan (SECP) has given directives for reducing the SECP’s regulatory fee considerably, calling back its officers and NAB cases as well as restoring revoked licenses of stockbrokers.
The board chairman censured SECP Chairman Farrukh Sabzwari, who is also a member of the policy board, for neglecting the instructions. As per details, the policy board held a meeting at the SECP head office.
The meeting, presided over by Board Chairman Khalid Mirza, was held to review the progress on implementation of instructions given to the commission in past meetings. The board had directed the commission to reduce the regulatory fee considerably.
The commission was also advised to call back the cases forwarded to the National Accountability Bureau (NAB) and bring back the SECP officers who had left. Restoration of the licences of stockbrokers was also suggested.
The SECP chairman was again directed to immediately and unconditionally implement the instructions given by the board.
The policy board expressed disappointment over the SECP’s failure to implement its recommendations, aimed at ensuring ease of doing business and promotion of trade, commerce and industry.
The policy board also turned down the draft budget proposed by the SECP and pointed out that the budget did not take into account the proposed cut in regulatory fee. The board observed that the regulatory fee of SECP must be cut in order to develop and boost growth in various sectors of the capital market.
The board advised the SECP to cut its fee so that business volume could increase and the commission could benefit from the increased revenue. However, the SECP chairman did not agree with the recommendations proposed by the policy board and maintained that the reduction in regulatory fee would financially affect the commission and would also deprive it of its independent stature.
Moreover, members of the policy board believe that the SECP staff should be cut by 20%, the orders for which have been earlier issued.
In addition to that, the board has also advocated reduction in the administrative expenditure made by the commission to make up for any revenue loss after the reduction in regulatory fee. The board directed the commission to amend its proposed budget and present it for approval on July 1.