KARACHI: A two-member bench comprising Chief Justice Ahmed Ali M. Shaikh and Justice Yousuf Ali Sayeed dismisses a constitutional petition filed by KSE Stockbrokers Association and others against Securities & Exchange Commission, Managing Director, Pakistan Stock Exchange Limited (PSX) and others.
On 14 April 2022 court observed in its order that” The Petitioners, being an Association of stockbrokers of the Pakistan Stock Exchange Limited and certain licensed brokerage houses who are its constituent members, have invoked the jurisdiction of this Court under Article 199 of the Constitution impugning Circular Nos. 09/2015 dated 08.04.2015 and 47/2015 dated 30.12.2015 (hereinafter referred to individually as “Circular 9” and “Circular 47” respectively, and collectively as the “Impugned Circulars”) issued by the Respondent No.3.
Court added that Securities and Exchange Commission of Pakistan (the “Commission”) in purported exercise of powers under Section 40-B of the Securities and Exchange Commission of Pakistan Act, 1997 (the “1997 Act”), whereby certain training requirements and certifications were imposed in respect of particular employees/personnel of the brokerage houses acting as „intermediaries‟.
Succinctly stated, the case of the Petitioners is that notwithstanding the reference to Section 40-B as to source of the power underpinning the Impugned Circulars, the same are ultra vires, lacking the backing of that Section or any other substantive provisions of the Act, whether Section 20 or 22 or otherwise, and that the mandatory certifications envisaged in terms thereof violate their fundamental rights guaranteed under Articles 4, 8 and 18 of the Constitution.
Hence declarations have been elicited to that effect along with a permanent injunction to restrain the Respondent from taking any action to give implement or otherwise give effect to the Impugned Circulars as against them or their officers and employee
After arguments, court observed that noting has been pointed out to show that the subject of the Impugned Circulars has been so identified by the Commission as a matter of policy for consideration by the Board, and the argument advanced on behalf of the Petitioner even otherwise does not serve to denude the Commission of its competence in view of the wording of Section 21(2). 14.
In view of the foregoing it is manifest that the Petition is misconceived and devoid of force, thus stands dismissed accordingly”.
