The Securities and Exchange Commission of Pakistan (SECP) on Thursday informed National Assembly Standing Committee on Finance that the existing Appellate Bench of the Commission would be replaced with an independent “Financial Services Market Tribunal” for hearing appeals against orders passed by the SECP.
The SECP officials informed the committee during an in-camera briefing held at the SECP.
The 58th meeting of the National Assembly Standing Committee on Finance and Revenue held at the SECP Headquarters under the chairmanship of Mr. Faiz Ullah, MNA.
The Committee discussed the agenda items pertaining to the review of the Companies (Amendment) Bill 2020, with regard to the issuance of Ordinance No V of 2020, Companies (Second Amendment) Bill 2020 with regards to Ordinance No X of 2020, and the SECP (Amendment) Bill 2020.
The SECP team gave a detailed presentation to honorable committee members on proposed amendments in respective statutes. The SECP Chairman informed the committee that the Commission has proposed amendments in the Companies Act, 2017 primarily to promote start-ups, business innovation, entrepreneurship and improve the general business climate, promote ease of doing business and remove some anomalies/ambiguities in the Companies Act.
A few significant proposed amendments include the introduction of a new concept of “Start-Up companies” and the exemption for private companies having Paid-up Capital up to Rs. 1 million from the filing of unaudited financial statements. Some specific amendments with the purpose of protection of minority shareholder’s rights were also proposed.
The Committee also considered the SECP (Amendment) Bill 2020 that include amendments with respect to improving transparency in process of appointment of Chairman, Commissioners, and members of the Policy Board, clarity in the role of Policy Board and Chairman, code of conduct for the Chairman, Commissioners, and members of the Policy Board. It is also proposed to ensure representation of all provinces in the SEC Policy Board.
It is also proposed to replace the current Appellate Bench of the Commission with an independent “Financial Services Market Tribunal” comprising of technical and judicial members for hearing appeals against orders passed by the Commission.
Moreover, amendments were also proposed to strengthen the Audit Oversight Board’s (AOB’s) independence, financial resources, and regulatory powers that include allowing AOB for conducting direct inspections and enhancing its scope by including public interest entities in the preview of AOB.
The Committee deferred the Agenda pertaining to the review of The Tax Laws (Amendments) Bill 2021. The Committee confirmed the minutes of the previous meeting and reviewed the implementation status of the previous recommendations of the Committee. The meeting was held at the Committee room of SECP’s head office.
The meeting was attended by Mr. Amjid Ali Khan, Syed Naveed Qamar, Ms. Hina Rabbani Khar, Mr. Jamil Ahmed Khan, Mr. Faheem Khan, Mr. Muhammad Israr Tareen, Dr. Ramesh Kumar Vankwani, Chaudary Khalid Javed, Mr. Ali Pervaiz, Dr. Aisha Ghaus Pasha. The meeting was also attended by Secretary Incharge, Finance Division Mr. Yousaf Khan, senior officers from the Ministry of Finance and Revenue, Board of Investment (BOI), Audit Oversight Board (AOB) and Securities and Exchange Commission of Pakistan (SECP).
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