Futures regulatory official: SECP suggests revision in procedure for appointment

The Securities and Exchange Commission of Pakistan (SECP) has proposed revision in the procedure for appointment of chief regulatory officer of futures exchange. The SECP has proposed amendments in the Futures Exchanges (Licensing and Operations) Regulations, 2017 here on Saturday. According to the regulations, the Futures exchange shall short list names of the three suitable persons meeting the fit and proper criteria provided in these regulations and shall submit its recommendation for approval of the Commission.
Under the exiting regulations on the appointment and functions of chief regulatory officer, the SECP said that the appointment and termination of services of the chief regulatory officer of a futures exchange shall be subject to prior approval of the Commission. A chief regulatory officer shall be appointed by the futures exchange through the following process: A futures exchange shall shortlist the most suitable person meeting the fit and proper criteria provided in these regulations and shall submit its recommendation for approval of the Commission. The Commission may, if satisfied that such person is suitable for appointment by the futures exchange as chief regulatory officer of the futures exchange, grant its approval for the same;
Provided that, if the Commission is not satisfied with the suitability of the proposed person as chief regulatory officer, it may refer the matter back to the futures exchange for proposing another name for consideration of the Commission.
Following is the text of the SRO 1215(I)/2017 issued here on Saturday:
SRO 1215(I)/2017.- The following amendment to the Futures Exchanges (Licensing and Operations) Regulations, 2017 proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of powers conferred by section 114 of the Futures Market Act, 2016 (XIV of 2016) are hereby published for information of all persons likely to be affected thereby, and as required by sub-section (4) of the said section 114, notice is hereby given that objections or suggestions thereon, if any, may be sent to the Commission within fourteen days of placement of draft amendments on the website of the Commission, namely:-
DRAFT AMENDMENT
In the aforesaid Regulations,-
(a) in regulation 9, for the full stop at the end a colon shall be substituted and November, 2017 thereafter the following proviso shall be added, namely-
"Provided that the Commission may notify, in the official Gazette, any class or classes of persons to hold such percentage of shares of the futures exchange as the Commission deems appropriate.";
(b) in regulation 10,-
(i) in sub-regulation 2, for the words "comprise at least one-third independent directors" the words "have independent directors not less than the shareholder directors" shall be substituted;
(ii) in sub-regulation 3,-
(A) in clause (a), for the words "submit the name of the person suitable for appointment as an independent director to the commission for each vacancy, for its approval" the words "maintain a panel of fit and proper persons suitable for appointment as independent directors" shall be substituted;
(B) after the clause (a), the following new clause (ab) shall be inserted, namely-
"(ab) A minimum of two names from the panel maintained under clause (a) shall be submitted by the futures exchange to the Commission for each vacancy, for its approval;";
(iii) in sub-regulation 5, for the word "one-third" the word "one-half" shall be substituted;
(c) in regulation 11, in sub-regulation 3, for clause (a), the following shall be substituted, namely:-
"(a) The Futures exchange shall short list names of the three suitable persons meeting the fit and proper criteria provided in these regulations and shall submit its recommendation for approval of the Commission";
(d) in regulation 12, in sub-regulation 2, for clause (a), the following shall be substituted, namely:-
"(a) The Futures exchange shall short list names of the three suitable persons meeting the fit and proper criteria provided in these regulations and shall submit its recommendation for approval of the Commission".