Senate Committee to finalize discussion on Privatization Commission Amendment Bill 2014 today (Wednesday)
ISLAMABAD: The Senate Standing Committee on Finance and Revenue, Tuesday, unanimously adopted the Securities Bill 2015 to consolidate law for the regulation of the securities industry and protection of investors. The new approved law would strengthen the regulator (SECP) to take action against malpractices in the securities market.
The objective of the Securities Bill 2015 is to remove the major shortcomings in Securities and Exchange Ordinance, 1969, because SEO 69 has no provision for system audit of stock exchanges; Commission intervention powers for investor protection and regulation for clearing houses etc
The committee also decided to take the final decision, either to adopt or reject, the Privatization Commission Amendment Bill 2014 today (Wednesday). However, committee decided to finalize discussion on the Anti Money Laundering Amendment Bill 2014 on next Wednesday March 11, the last day of the tenure of retiring 52 Senators.
The Senate Finance Committee met here with Chairperson Nasreen Jalil to discuss the Securities Bill 2015, Privatization Commission Amendment Bill 2014 and Anti Money Laundering Amendment Bill 2014.
Nasreen Jalil chairing the meeting said that new legislation was need of the hour and the new law needs to be passed. She said that after judiciary, Securities and Exchange Commission of Pakistan (SECP) was the most important institution in the country.
Briefing the committee on the Securities Bill 2015, the SECP Chairman Zafar Hijazi said that there were major shortcomings in the existing Securities and Exchange Ordinance 1969 that needed to be replaced with Securities Bill 2015. He informed the committee that there were no provisions in the ordinance for duties of securities exchange, system audit of stock exchanges, power of intervention of the commission for investor protection and regulation of clearing houses.
He observed that the Securities and Exchange Ordinance, 1969 (SEO 69) law had become obsolete and there was an urgent need to replace it with a new one to meet international standards as well as there were several sensitive cases in the security market, over which SECP did not have any power to take up due to absence of legal power. Hijazi informed the committee about the resolve of the apex regulator to ensure fair and transparent market and protection of investors’ interest.
Due course of discussions on the adopted bill, the MD Lahore Stock Exchange (LSE) requested the committee to bind the Securities and Exchange Commission of Pakistan (SECP) to exercise its powers and don’t let LSE and Islamabad Stock Exchange (ISE) on the mercy of the Karachi Stock Exchange (KSE).
Senator Talha Mahmood observed that Securities Bill had been lying pending in the parliament since last five years therefore, this bill should be passed now. He also said that SECP should take measures to secure the interests of the investors.
Senator Ilyas Bilour said that SECP was much affectionate on KSE and was not extending appropriate treatment towards the ISE and LSE.
The committee directed SECP to take action against those registered companies with SECP which were violating the rules and regulations and report back to committee in two weeks. After thorough discussions, the committee adopted the said bill unanimously however, postponed the further deliberations on the Privatization Commission Amendment Bill 2014 till today (Wednesday) and finalization of the discussion on Anti Money Laundering Amendment Bill 2014 till Wednesday next, March 11 which is the last day of the tenure of retiring 52 Senators.
The Committee appreciated SECP’s efforts in drafting the Bill in line with international practices. While Committee Chairperson, Nasreen Jalil concluded the meeting and congratulated all committee members and Chairman SECP for approval of Securities Bill,2015. She added that implementation of law be ensured to empower SECP.
Syeda Sughra Hussain Imam,Haji Muhammad Adeel, Engr. Muhammad Hamayun Khan Mandokhel,Osman Saifullah Khan,Sardar Fateh Muhammad Hassani,Malik Muhammad Rafique Rajwana,Muhammad Talha Mehmood,Ilyas Ahmad Bilour participated in the meeting.
